A member of the committee, Mafirion, stated in Jakarta on Wednesday that current regulations on jurisdiction and choice of law do not favor domestic interests, as some foreign businesses in Indonesia still enter into contracts based on the laws of their home countries.
"For example, a businessperson from Singapore comes to Indonesia and enters into a business contract in Indonesia. However, in that contract, Singaporean law is chosen as the applicable law," he said.
This, he continued, raises the question of whether the RUU HPI should stipulate that if a contract is made in Indonesia, Indonesian law should apply.
"This is important to strengthen legal certainty and national legal sovereignty," he said.
According to him, in the practice of trade agreements, especially international ones, the freedom to determine jurisdiction should not be left unchecked.
Therefore, the bill must boldly establish standard rules.
He proposed that every business contract entered into within Indonesian jurisdiction be required to use Indonesian law to prevent unilateral profit-seeking practices by foreign corporations.
"We consider jurisdiction to be a very important aspect of private international law. The state must have clear regulations so that Indonesia is not exploited as a place for profit-seeking by certain parties," he said.
He also advocates for the principle of fair reciprocity for local businesses abroad.
The government was also urged to establish a specific provision safeguarding Indonesian entrepreneurs in international business agreements, ensuring fair treatment and equal opportunities when entering into contracts and conducting commercial activities abroad.
Besides contract issues, the committee also highlighted the clause on recognition of foreign court decisions.
He said the current practices are too lax and open to accepting the execution of foreign legal decisions without considering the impact on national interests.
Mafirion hopes that the bill will not merely complement the administration of international relations but also serve as a legal protection, protecting national economic interests and creating fair and sovereign cross-border business relations.
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Translator: Fath Putra Mulya, Cindy Frishanti Octavia
Editor: Arie Novarina
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