Indonesian Government To Restrict Rights Of Foreign Lawyers

by Mary Swire, for LawAndTax-News.com, Hong Kong

17 March 2003

The Indonesian government is set to buck the regional trend for liberalising legal markets when it implements a new law restricting the rights of foreign lawyers to practise in the county later this year.

Although its legal market has shrunk since the late 1990s, Indonesia's large population and substantial infrastructure needs make it a lucrative market for foreign lawyers, especially those from the UK, US and Australia.

However, according to a report from Legal Week last week: 'Foreign lawyers will soon have to gain a special licence to practise. A new pan-Indonesian law society will be created which will monitor and license foreign lawyers.'

Speaking to the news service with regard to the incoming laws, an unnamed UK legal professional suggested that Indonesian firms have lost out on profitable local projects to foreign law firms in the past, which has created resentment. However, he argued that: 'The local practitioners do not have the skills to do these major deals.'

According to the Legal Week report, though, Indonesian law firms are more concerned that the new law, when implemented, will clamp down on: 'so called 'fly-in, fly-out lawyers'. The news service went on to add that:

'Law firms that operate out of 'consultancies' in Jakarta - a method favoured by US firms - are expected to see a clamp down on their activities as well.'

Recommended