The Importance of Legal Opinion for Foreign Companies in Business Operations in Indonesia

In an era of global economic integration, foreign companies seeking to expand their business must fully understand and comply with the legal regulations of their target markets. For foreign companies engaging in business activities in Indonesia, a comprehensive legal opinion is particularly crucial. This article will explore the pivotal role of legal opinions in the Indonesian business environment and why foreign companies should consider them an indispensable guide.

  • The Complexity of the Legal Environment

Indonesia’s legal system comprises various regulations, decrees, and legal traditions, including national law, Islamic law, and indigenous customary law. The diverse legal landscape makes it challenging for foreign companies to comprehend and adhere to all regulations without professional legal guidance. A well-prepared legal opinion can assist foreign companies in navigating the intricate legal framework, ensuring that their business actions are both legal and compliant with local laws.

  • Investment Protection and Risk Management

Business investments in Indonesia may encounter a range of legal risks, including but not limited to contract disputes, intellectual property issues, labor regulations, and tax laws. A detailed legal opinion can help foreign companies identify potential legal risks and provide corresponding risk management advice. Additionally, legal opinions can offer insights into the investment protection mechanisms within Indonesia’s legal system, ensuring that the interests of foreign investors are effectively safeguarded.

  • Compliance and Business Ethics

Legal opinions, not only address regulatory compliance but also focus on the ethical compliance of business conduct. In Indonesia, business actions are often closely tied to culture, religion, and societal values. Business practices that do not align with local ethical standards may lead to social controversies. Through legal opinions, foreign companies can better understand the local culture and ethical background, enabling them to adjust their business strategies and ensure a positive image and reputation in the Indonesian market.

  • Establishing Sound Business Relationships

A thorough legal opinion can play a critical role when foreign companies establish business relationships with Indonesian partners. Clear contracts, agreements, and legal assurances provide a robust legal foundation for business dealings, reducing uncertainty and disputes during the cooperation process. This, in turn, helps build long-term, stable business partnerships.

In the process of entering the Indonesian market, foreign companies need to recognize the complexity of Indonesia’s legal environment and cultural background. A comprehensive legal opinion can guide foreign companies in their business actions, ensuring that their operations are not only legal and compliant but also ethically aligned with local business standards. Therefore, foreign companies engaging in business activities in Indonesia should consider a legal opinion an essential tool to minimize legal risks and enhance the chances of business success.

Members of Queen Law Firm Head to North Maluku Province to Handle Major Cases

Today, a team from Queen Law Firm headed to the Nickel Mining and Industrial Park in Central Halmahera, North Maluku, Indonesia – the Indonesia Weda Bay Industrial Park (IWIP), to provide legal assistance in several significant cases. As one of the leading legal teams in Indonesia, they will strive to resolve the legal challenges currently facing the region.

Queen Law Firm is a prominent law firm in Indonesia known for its professional legal services and client commitment. In this assignment, they will deal with various types of cases, including debt disputes, land disputes, and labor rights. This action reaffirms Queen Law Firm’s commitment to providing legal support throughout Indonesia.

North Maluku province is an important industrial area in Indonesia, with its nickel mining resources attracting global attention. However, with the rapid development of industry in the region, several legal challenges have emerged, including those related to debt, land use, and labor rights. The arrival of Queen Law Firm brings hope to the region while reminding the industry of the importance of legal compliance.

Members of Queen Law Firm will collaborate with relevant government departments and companies at the Weda Bay Industrial Park, working to resolve current legal disputes and promote the development of a sustainable legal framework in the area.

Eni Oktaviani, SH., MH., CLA., a lawyer from Queen Law Firm, stated that they will actively collaborate with judicial institutions and the local community, striving to find solutions, ensure the implementation of fair judicial procedures, and create a fair and secure legal environment for all parties involved. This action will further strengthen Queen Law Firm’s position in the Indonesian legal community while providing valuable experience for similar challenges in the future.

The Multidimensional Perspective of Justice: Pursuing the Eternal Principles of Fairness

Justice, this abstract and far-reaching concept, runs through the history and progress of human society. From ancient times to the present, people have continuously explored the essence of justice, often getting entangled in debates between different ideologies and perspectives. Justice is not a singular concept; it is a multidimensional tapestry encompassing numerous layers of values and meanings. In this article, we will attempt to understand justice from different angles and explore the eternal principles of seeking fairness.

1. The Individual Dimension of Justice

At the individual level, justice involves respecting, equality, and dignity for each person. Everyone has the right to fair and equitable treatment, free from discrimination based on race, gender, religion, or social status. At this level, justice is closely connected to human rights, with people pursuing fundamental humanitarian values, hoping to attain respect and freedom within society.

2. The Social Dimension of Justice

At the social level, justice concerns the fairness and harmony of the entire society. Social justice demands rational distribution of resources, ensuring that every individual has equal opportunities to develop and realize their potential. Reducing wealth disparities, equitable distribution of education and healthcare resources, and efficient functioning of public services are all crucial to achieving social justice. Justice here is not only a moral demand but also the foundation of social stability and prosperity.

3. The Legal Dimension of Justice

Law is one of the significant manifestations of justice. Through law, society can punish unfair behaviors, safeguard citizens’ rights, and maintain social order. However, the law itself needs continuous examination and improvement to ensure its alignment with moral values. Justice requires the support of the law, and good laws should reflect the principles of justice rather than becoming tools of power.

4. The Global Dimension of Justice

With the development of globalization, the scope of justice has expanded to a global level. Global justice calls for cooperation and consensus across national borders, focusing on the development of impoverished regions, climate change and environmental protection, and humanitarian care for refugees and immigrants. At this level, countries need to transcend selfishness and work together to maximize the overall interests of humanity.

5. The Time Dimension of Justice

Justice also has a time dimension. Historical injustices and prejudices may need to be confronted, and historical reparations and truth investigations become a part of achieving justice. Meanwhile, present choices for justice inevitably influence the future. We need to create a more just and harmonious society for the next generation, which is both a responsibility and reward for the past and present.

6. The Multicultural Dimension of Justice

Justice is not universal; different cultures and traditions have different interpretations of justice. Respecting cultural diversity and understanding its unique contributions to justice are key to achieving global justice. Dialogue and inclusivity among cultures will help eliminate misunderstandings and biases and achieve a cross-cultural perspective of justice.

7. The Persevering Pursuit

Although justice is an ideal goal, it does not mean it is unattainable. The pursuit of justice is an enduring issue for humanity, requiring relentless efforts from every generation. In this process, we may never reach perfect justice, but our unwavering efforts will gradually bring us closer on the path of progress.

Conclusion

Justice is a complex concept, involving multiple layers of meanings and pursuits. In the dimensions of the individual, society, law, global, time, and culture, we strive for fairness, equality, respect, and harmony. Justice is not immutable; it should evolve and improve with the development of time. Only by persistently pursuing justice can we find a way to coexist more justly and beautifully in this diverse and intricate world.

Queen Law Firm Wins “INDONESIA BEST PERFORMANCING LAWYER WINNER 2023” Award

On May 12, 2023, Eni Oktaviani, SH., MH. and Dr. Guan Yue of Queen Law Firm received the “INDONESIA BEST PERFORMANCING LAWYER WINNER 2023” in an awards ceremony. This award recognizes their excellent performance in the legal field in Indonesia.

At the event, Eni Oktaviani, SH., MH. thanked the government agencies, colleagues, and clients for their support. She stated that the award is a recognition of the high-quality legal services provided by Queen Law Firm and its team to clients over the years. She said, “We are committed to providing the best solutions for our clients and working closely with them to understand their needs. This award belongs to everyone at Queen Law Firm.”

Dr. Guan Yue, in his acceptance speech, shared his understanding and passion for the legal profession. He said, “As lawyers, our job is to seek justice for those who need our help. This is the core of our profession. We must always consider issues from the client’s perspective and provide the best legal services to them. This is a path full of challenges and opportunities, but as long as we remain passionate and persistent, we will succeed.”

This award demonstrates the excellent performance and leadership of Eni Oktaviani and Dr. Guan Yue in the legal field and also recognizes Queen Law Firm’s leadership position in the legal industry in Indonesia. Their successful experience will inspire more young lawyers to move forward in professionalism and serving clients, and make greater contributions to the legal profession in Indonesia.

Legal Auditor

A legal audit refers to a legal risk assessment and compliance check conducted on enterprises or organizations to determine whether they comply with relevant laws, regulations, rules, contracts, and business ethics, and to identify and address potential legal risks and compliance issues. In Indonesia, legal audits must be conducted by licensed professional legal auditors with the aim of providing advice and support on legal compliance to enterprises or organizations, reducing legal risks, and avoiding legal disputes. The content of legal audits includes but is not limited to enterprise compliance, licenses, assets, labor and employment, cases, debt and credit, and taxation.

Queen Law Firm has licensed professional legal auditors who produce legal audit reports widely used in corporate mergers and acquisitions, IPO audits, large-scale international trade, financial audits, litigation cases, and intellectual property transactions.

Dr. Guan from Queen Law Firm was Interviewed by Johns Hopkins University

On March 22, 2023, a research team from Johns Hopkins University interviewed Dr. Guan from the Queen Law Firm to discuss the issue of judicial efficiency in Indonesia.

In the interview, Dr. Guan pointed out some problems in the Indonesian judicial system, such as excessive delay in case processing, lack of transparency and predictability, and uneven professional level among judges. These problems have led to low efficiency and unfairness in the judicial process, negatively affecting Indonesia’s business and investment environment.

However, Dr. Guan also mentioned some positive changes. The Indonesian government has begun to take measures to improve judicial efficiency and fairness, such as implementing electronic litigation systems, strengthening training for judges and legal professionals, and establishing a more transparent and predictable judicial system. These measures are expected to promote the improvement of Indonesia’s legal environment and judicial image, enhance business confidence, and attract more foreign investment.

Dr. Guan also stated that although there are still many challenges in the Indonesian judicial system, he remains optimistic about the future and calls on the government, enterprises, and all sectors of society to work together to promote the reform and modernization of the Indonesian judicial system to achieve a more fair and efficient judicial process.

Company Obligations when Dismissing Employees

Basically, if the company is going to lay off its employees, there are a number of things that must be paid to the employees, including: Severance Pay, Service Reward Money, and Compensation, with the following calculations:

Severance Pay:

  1. working period less than 1 year, 1 month wage;
  2. working period of 1 year or more but less than 2 years, 2 months wages;
  3. working period of 2 years or more but less than 3 years, 3 months wages;
  4. working period of 3 years or more but less than 4 years, 4 months wages;
  5. working period of 4 years or more but less than 5 years, 5 months wages;
  6. working period of 5 years or more, but less than 6 years, 6 months wages;
  7. working period of 6 years or more but less than 7 years, 7 months wages;
  8. working period of 7 years or more but less than 8 years, 8 months wages;
  9. 8 years of service or more, 9 months wages.

Service Reward Money:

  1. working period of 3 years or more but less than 6 years, 2 months wages;
  2. working period of 6 years or more but less than 9 years, 3 months wages;
  3. working period of 9 years or more but less than 12 years, 4 months wages;
  4. working period of 12 years or more but less than 15 years, 5 months wages;
  5. working period of 15 years or more but less than 18 years, 6 months wages;
  6. working period of 18 years or more but less than 21 years, 7 months wages;
  7. working period of 21 years or more but less than 24 years, 8 months wages;
  8. 24 years of service or more, 10 months wages.

Compensation:

  1. annual leave that has not been taken and has not fallen;
  2. costs or fees for returning workers and their families to the place where workers are accepted to work;
  3. other matters stipulated in work agreements, company regulations, or collective labor agreements.

Dari semua perhitungan di atas dapat di tambah atau di kurangi sesuai dengan keadaan yang terjadi misalnya,  M&A dalam perusahaan, karyawan di PHK menjelang masa Pensiun atau PHK karena Karyawan meninggal dunia atau mengalami cacat parah yang menyebabkan Karyawan tersebut tidak dapat bekerja Kembali, dan beberapa keadaan lainnya.

The Structure of The Legal Opinion (LO)

So far, Queen Law Firm has issued Legal Opinions for many companies around the world, including online games, mining, tourism, transportation, virtual currency, real estate development, international trade, medical equipment, company listing, new energy, high-speed rail, securities, etc. for many industries and uses. Today, Queen Law Firm would like to summarize the composition of a Legal Opinion, so enterprises and individuals interested in Legal Opinion can better understand the professionalism and importance of Legal Opinion.

A Legal Opinion is a professional legal document that gives detailed legal answers to one or more issues on the basis of studying existing laws and regulations. The role of Legal Opinion is very important. It can ensure that enterprises avoid possible legal risks when conducting certain commercial activities, and obtain the maximum profit at the minimum cost within the scope permitted by law. Legal Opinions are generally divided into the following five parts:

  1. Legal Basis
    This part lists the current laws and regulations that will be used in the Legal Opinion. Because all opinions in the Legal Opinion will be given based on these laws and regulations.
  2. Chronology of Facts
    This part is a statement of some facts, such as the basic situation of the client, the legality of the documents and materials submitted by the client, and so on.
  3. Problem Identification
    This part will list the questions that the Legal Opinion will answer.
  4. Legal Opinion
    This part will provide legal professionals and detailed answers to the questions raised by the client in accordance with applicable laws and regulations, and give corresponding suggestions. In this part, there will be a rigorous legal logic system. By analyzing various legal articles related to the issue, the rationality and legality of the legal opinion will be determined. For individual types of Legal Opinions, there will also be case analysis, government policy research, etc.
  5. Conclusion
    In this part, the answers to the questions will be listed again in a summary manner, so that client can refer to them in later operations.

It can be seen that a good Legal Opinion has a rigorous system. Because a good Legal Opinion must be able to maximize the protection of the interests of the client. It can be said that a good Legal Opinion is the compass for the enterprise in the process of implementing the plan.

About Operational Costs

In some cases, there are still many clients who ask whether Advocates who are in Java can hold proceedings outside Java. Because the distance is very far, it raises doubts for Clients who are domiciled from where the Advocate is. We need to explain that according to LAW OF THE REPUBLIC OF INDONESIA NUMBER 18 OF 2003 CONCERNING ADVOCATES, Article 5 Paragraph 2 states:

“The Advocate’s work area covers the entire territory of the Republic of Indonesia”

Thus, we can explain that Advocates can hold proceedings anywhere as long as they are still within the territory of the State of Indonesia.

Then, the next question that we usually get is, will there be additional costs for operational costs if there is a case outside the city? In general, there is, depending on the policy of the Advocates themselves. However, with the QUEEN LAW FIRM policy for cases still in the areas of Java Island and Bali Island, we provide Free Operational Costs. So we hope that all Clients from QUEEN LAW FIRM from anywhere can enjoy our services efficiently, cheaply, and quickly in handling cases faced by Clients.

Requirements for Letter of No Objection to Marriage

Chinese citizens domiciled in Indonesia and Indonesian citizens have registered their marriage with the Indonesian population department. At the request of the Indonesian population department, Chinese nationals can apply for a “Letter of No Objection to Marriage”. To apply for a marriage certificate without objections, you will need to prepare the following materials:

  1. Original and copy of foreigner’s passport;
  2. Foreigners at the domestic notary office issue a “notarization of unmarried information” and to the Consular Department of the Ministry of Foreign Affairs or local foreign offices, Indonesian embassies and consulates in China to carry out “double certification”;
  3. Original and copy of Kitas Foreigner;
  4. Foreign companies working in Indonesia issue evidence that they work in Indonesia;
  5. Proof of entering a foreigner’s religion (depending on the religion of the Indonesian citizen);
  6. Original passport and copy of Indonesian passport;
  7. Original evidence from single letter of Indonesian citizen (civil registration/KUA);
  8. The original household registration card (KK) and a copy of the Indonesian citizen;
  9. Each is handwritten in one copy at the time of introduction and signed and dated (Contents: time, when and where to get acquainted, how to get acquainted, duration of communication between the two parties, language of communication between the two parties, whether you have met each other’s family members others, do you know each other’s family situation, whether the Indonesian citizen concerned has ever visited China, do you intend to stay in Indonesia after marriage, etc.);
  10. 3 photos together (better if you can attach a photo of the meeting with parents).

*Embassies and Consulates will not issue a “Letter of No Objection to Marriage” for Chinese nationals who come to Indonesia temporarily or for a short period of time.

*After the initial inspection, the Embassy may ask you to provide other relevant supporting materials according to your situation.