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Kai Hauerstein (LL.M.)

1y ago

Lawyer & Management Consultant with 20+ years in Development Cooperation. I write about Indonesia's Legal Business Environment to help professionals and businesses make informed decisions.

The Business Environment in Indonesia - International Relations and FDI: 3 Sources for Primary Legal Information

I shared secondary sources in the last two essays that describe Indonesia's ongoing investment reform. What is lacking is a central legal database where every investor, professional, or student has access to primary sources of legal information, i.e., all the rules and regulations governing investment, from starting, operating, or exiting a business. The Ministry of Investment (BKPM) does not compile or provide access to relevant laws and regulations regarding the new investment laws and regulations. The handbook on investment (see yesterday's essay) provides only secondary information. Lawyers/law firms typically obtain legal texts as needed and have established their private legal databases.

Limited Access to updated and compiled legal information

In theory, all laws and regulations should be published in the State Gazette (Berita Negara), https://www.beritanegara.co.id. However, the State Gazette neither provides a centralized, consolidated, updated online legal database nor a physical book that complies with all laws and regulations.

Private Provider of Legal Information: Hukum Online

Hukum Online (https://www.hukumonline.com) claims to have a "complete" database and provides a good starting point for legal research. Under the tab "data center (pusat data)," approximately 200,000 regulations have been grouped for better access. Around 4,000 regulations can be accessed in English. It also has a feature that allows laws to be grouped according to areas (bidang). For example, laws and regulations are grouped under investment. It should be noted that Hukum Online is not an official online databank; it is subscription-based.

The General Directorate for Regulations under the Ministry of Law and HR

The General Directorate for Regulations under the Ministry of Law and HR maintains a database https://peraturan.go.id/ for laws and regulations, which appears to be reasonably comprehensive.

Key Takeaway:

The lack of a centralized, official, accessible, and updated legal information system in Indonesia poses significant challenges for investors seeking to navigate the regulatory landscape.

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