Author: Dr. Guan Yue

Indonesian e-commerce will need to pay income tax and VAT

Prof. Sunaryati Hartono once said: Indonesia must run the law if it wants to advance.

Indonesia ’s Finance Minister Sri Mulyani recently emphasized that Indonesia ’s economic growth does not come from debt, but from investment by foreign private companies. Relying on investment, she is confident that Indonesia’s economic growth rate can reach 7%. In order to attract more foreign investment, the government should formulate facilitation measures in the financial field. One of them is to deregulate investment and promulgate Omnibus Law, such as the implementation of tax reduction and incentive policies, to attract large amounts of foreign investment. So despite the regulation of e-commerce taxation, its purpose is to attract foreign investment and promote economic development.

Among them, Article 14 of the Comprehensive Tax Law clearly stipulates that resolute action will be taken on all traders who participate in commercial activities in the form of e-commerce. In this case, the Ministry of Finance plans to impose income tax and value-added tax on e-commerce operators.

As mentioned in Article 14, paragraph 1, income tax will be levied on the income of tax bodies that conduct e-commerce activities in Indonesia.

The income tax levied on Indonesian e-commerce traders will follow the provisions mentioned in the Income Tax Law. The value-added tax levied on Indonesian domestic e-commerce traders will follow the provisions of the VAT Law on Goods and Services and the Luxury Sales Tax.

According to the “SEA e-Conomy 2019 Report”, Indonesia is expected to achieve a target of $ 82 billion in e-commerce transactions by 2025. On the other hand, Indonesia’s closest competitor is Vietnam. By 2025, Vietnam’s transaction volume is only 23 billion US dollars. From this fact, the efforts of the Indonesian government to pursue e-commerce taxes are largely meaningful because of the huge tax potential. This potential digital tax can also help the government achieve tax goals.

At the same time, this measure can further regulate the Indonesian e-commerce market, thereby better attracting foreign investment.

Queen Law Firm Handles International Drug Case

Queen Law Firm is currently assisting the International Network Drug case with 30 Kg of Methamphetamine evidence with a network of interstate dealers who have the role of importing drugs into Indonesia by land.


The shipment of methamphetamine from Myanmar to Kuching (Malaysia), then to Pontianak to Pangkalan Bun and to the Port of Tanjung Perak, Surabaya.


The suspect we accompanied Lhau Chu Hee was a drug courier in charge of sending goods from Malaysia to Indonesia and not an international drug dealer, so we will defend the rights of the suspect and help the authorities to uncover who is the big dealer behind the case.


Meanwhile, one of the suspects, Che Kim Tiong, claimed to send methamphetamine on the orders of Mr. Po from Kuching, Malaysia. From Mr. Po, Che Kim Tiong claimed to get as much as 40 thousand ringgit or around Rp. 133 million, while Lhau Chu Hee served as a methamphetamine courier who got paid 7,000 ringgit or around Rp. 23 million.

Happy Chinese New Year 2020

In the past year, thanks to everyone’s love, Queen Law Firm has successfully completed legal services for a large number of enterprises and individuals in the world.

In the new year, Queen Law Firm will continue to uphold the spirit of always thinking about clients and will provide better legal services to all of the people.

Here, all members of Queen Law Firm wish the people all over the world:

Good luck in the year of the rat!
Gong Xi Fa Cai!

Introduction of Indonesian Civil Procedure

In recent years, due to the active economy of Indonesia and the opening of related policies, a large number of foreign companies and individuals have set their sights on Indonesia, the fourth largest Southeast Asian country by population. However, due to insufficient understanding of local laws and regulations, and failure to do homework in advance for local customs, many foreign companies and individuals are caught in legal disputes, and many foreign companies and individuals lack confidence in the Indonesian judicial system. It is still a country full of corruption, and what is more, it still believes that the Indonesian government and the public are biased against foreigners and believes that once caught in the lawsuit, it must be the foreigners who suffer.

The world is constantly developing. There is no one-size-fits-all country in the world. Every government wants to make its own country stronger, its people more prosperous, and its international status more stable, as is Indonesia. As Southeast Asia ’s largest economy, Indonesia has been cracking down on corruption in recent years. In particular, several reforms to the judicial system have greatly improved the efficiency of litigation and reduced the possibility of judges taking bribes. Of course, I am not saying that there is no corruption in the Indonesian judicial system, but that it has been greatly improved compared to the past.

Many foreign reports have advocated that foreign companies and individuals should try to avoid getting caught up in lawsuits when they encounter legal problems in Indonesia. That is because everyone does not know enough about Indonesia’s judicial process. Today, I will mainly talk about the issues that many companies and individuals are more concerned about. What are the steps if a lawsuit is to be filed in Indonesia? How much time does it take?

Regarding helping foreign companies and individuals in lawsuits in Indonesia, especially civil lawsuits, our Queen’s Law Firm can be said to be experienced. Regarding the judicial process in Indonesia, we must first talk about the source of Indonesian law. Indonesia is a Dutch colony and has been colonized by the Netherlands for 100 years, so the legal system is a legacy of the Dutch legal system. And we all know that the Netherlands is the country where several legal thoughts originated in the world. The father of international law, Grotius, is Dutch. Therefore, no matter how many times the law currently used in Indonesia has been modified, the soul of the law still has the shadow of Dutch law. Therefore, the number of courts in Indonesian civil lawsuits is very high, which will surprise many foreign friends.

In Indonesia, whether simple or not, civil cases basically need to be heard about 10 times. Because Indonesian law believes that to ensure the fairness of the parties, it is necessary to ensure a sufficient number of hearings so that both parties have sufficient opportunities to clarify their claims and prove their innocence. If there are no special circumstances, the usual steps are as follows: first, the lawyer submits the indictment in the electronic court system, and then the court will send the subpoena to the other party within two weeks to one month. At the first hearing, the judge and the lawyers on both sides check the power of attorney with each other to ensure the legality of the lawyer. The mediation judge then conducts one or two mediation, and if the mediation fails, it officially enters the hearing stage, that is, the second hearing, and the judge reads the indictment. The third time a response to our indictment was submitted by the opposing lawyer. The fourth time we responded. The 5th time the other party will reply. The sixth time we submitted evidence, the opposing lawyer reviewed the evidence. The 7th time our witnesses attended. The 8th time the other party submitted evidence, our lawyers reviewed it. The 9th counterpart witness attended. For the 10th time, both parties submitted their concluding remarks. For the eleventh time, the judge read the verdict.

Each week or the same day at most one week apart, mediation is not counted, and 11 sessions are held. In other words, civil proceedings in Indonesia will last at least 3 months and up to 6 months.

In addition, Indonesia has a three-trial final system, which means that there are two opportunities to appeal, and each appeal lasts for one to three months. This is done with full consideration of the principle of fairness.

So many people will ask if it will be troublesome to go to court without stopping. In fact, with the exception of the divorce case, other civil lawsuits do not require the parties to be present, just leave it to a lawyer to do it. And now Indonesia is launching an online court trial system, which means that all court proceedings will be conducted directly through the Internet, which will greatly improve efficiency. The system is expected to be operational in 2020.

We have always advocated that when we encounter legal problems, we must solve them through legal channels. Blind retreat and tolerance will only promote the arrogance of the other party. Respect and dignity need to be won by ourselves.

Queen Law Firm continues to maintain 100% success rate

Today, Queen Law Firm won another lawsuit and continued to maintain a 100% success rate.

All Indonesian laws are based on the basic idea of Pancasila (Five Basic Principles of Indonesia’s Founding of a Nation). These five basic principles include:
1. Ketuhanan Yang Maha Esa (belief in God).
2. Kemanusiaan yang adil dan beradab (humanitarian).
3. Persatuan Indonesia (nationalism).
4. Kerakyatan yang dipimpin oleh hikmat kebijaksanaan dalam permusyawaratan dan perwakilan (democracy).
5. Keadilan sosial bagi seluruh rakyat Indonesia (social equity).

Indonesian law fully reflects its principle of fairness and fully complies with the basic ideas of the five basic principles of Indonesia’s founding of a nation. Even if our clients are mostly foreigners, judges can make fair decisions. In recent years, the Indonesian government has also stepped up its efforts to combat corruption and the judicial system has undergone a lot of rectifications. Judges are no longer able to directly contact lawyers and parties, so phenomena such as bribery of judges have rarely happened before.

Therefore, you don’t need to have any doubts about Indonesian laws, don’t be prejudiced against Indonesia because you are a foreigner, think that the Indonesian government or people still treat foreigners differently and have no confidence in the Indonesian judicial system. Because with these ideas, you will lose your legal rights and interests. We must believe in the law, take up the arms of the law, defend our rights and interests, and ensure the safety of investment, business and personal behavior in Indonesia.

 

 

PPKHI NATIONAL WORK MEETING TO IMPROVE CLIENT SERVICES IN ONLINE SYSTEMS

The QUEEN LAW FIRM advocates who are members of the Indonesian Lawyers Association and Legal Consultants (PPKHI) attended the National Work Meeting event held at the Amos Koji Hotel, Jakarta, in the meeting held on 12 to 13 October, attended by the chairperson and PPKHI Trustees and DPN staff and also attended by all PPKHI members throughout Indonesia.

In the event, advocates are guided to be able to compete in the DIGITAL world and follow the development of the Age in terms of legal services to all its clients, all Advocates are expected to be able to serve clients more practically, economically and quickly in their services by using technological sophistication in the form of Website, Email and Social media. Supported by technological sophistication makes it easy for the client in consultation without having to come all the way to the office of the Advocate in question.

By following the event, we advocates from QUEEN LAW FIRM hope to provide the best service to all clients without time and space.

The 10th China Service Trade Association Annual Meeting

On September 27-29, 2019 QUEEN LAW FIRM sent its representative, GUAN YUE, to attend the annual meeting of the Chinese trade and services association held in Zhangjiajie, Hu Nan.

This forum is to understand the direction of China’s economic policy as well as to explore investment opportunities in Indonesia, on that occasion present at the main speakers from the government, academics, observers and economic actors from various fields of business in China as well as Advocates and Law Firms throughout the World.

In the meeting discussing the prospects for trade and investment, the impact of the Chinese-US trade complex, the prospects of digital economics for cross-border e-commerce development, technological innovation pioneering economic cooperation and others were the topics of discussion in this annual forum.

In this annual forum, Indonesia has become one of China’s investment destinations, with Law No. 39 of 2009 concerning Special Economic Zones (KEK) can attract a lot of Investors from China in this case the Queen Law Firm gets a big enough share as a Law Firm that directly involved in the Investment activity.

Queen Law Firm, Go International!

On August 29, 2019, Queen Law Firm accompanied the client of a Saudi Arabian citizen in the Case of Act Against the Law against the defendant who had dual citizenship, namely Algerian citizenship and French citizenship.

With these cases can support Queen Law Firm in the international arena and triumphed throughout the World.

E-court Socialization to Advocates in the Legal Area of the Bandung Religious Court

On July 12, 2019, Queen Law Firm was invited by the Bandung Religious Court to participate in the E-court Socialization to Advocates in the Legal Area of the Bandung Religious Court.

After the Supreme Court launched the E-Court program a few months ago, it was listed in the Supreme Court Regulation No. 3 of 2018 as a legal basis for administering case administration in court electronically to support the realization of professional, transparent, accountable, effective, efficient and modern case administration.

The Bandung Religious Court is one of the work units that has opened this e-court service, where for the time being the e-court service is still limited to registered users, namely advocates. To implement the e-court so that advocates can conduct proceedings and register lawsuit cases and e-filling cases through e-court, therefore socialization needs to be held.

E-court socialization was held in the Multipurpose Room of the Bandung Religious Court in collaboration with BRI Branch Dewi Sartika, the presence of Banking, especially BRI, related to online payment (e-payment). Also present at the event were Chairperson of the Bandung Class 1A Religious Court, which also delivered a speech and outline presentation to Advocates in the Legal Areas of the Bandung Religious Court and also from BRI as well as providing an overview of online payment processes through E-Banking, ATM and EDC.

On that occasion the Chairperson of the Bandung Religious Court conveyed that e-Court was one of the Supreme Court’s efforts to realize the Fast, Simple Azaz Justice and Low Cost, while the presentation of the e-court flow from registration to online registration was submitted by Deni Syamsudin, IT Team PA Bandung, and the event acting as a moderator was Ato Sunarto, S.Ag. The Secretary of the Bandung Religious Court and the participants present at the event consisted of H. Ahmad Madjid, SH. MH. Registrar of Bandung Religious Courts and all Young Registrars, service desk officers and 42 people from Advocates.