THE CHRONICLES OF A CAPITALIST LAWYER

RANDOM THOUGHTS OF A CAPITALIST LAWYER ON LAW, ECONOMICS, AND EVERYTHING ELSE

  • The Vicious Cycle of Indonesian Legal Education


    I've spent the last three weeks collecting law journal articles for my personal research and I was very surprised when I realized that I had obtained around 900 articles from only 20 or so US law professors. I note that Richard Posner and Cass Sunstein are probably the most productive ones. Posner himself has written more than 290 articles for law journals (that's what I've gotten from Hein-Online) and I know that he also write countless books and opinions as a federal judge. So yes, saying that he is a prolific writer would be an understatement.

    My first reaction to this fact is making a comparison with Indonesian law professors. Honestly, it is very rare to find Indonesian law professors who actively write their thoughts in Indonesian law journals or books. Heck, it is even harder to find law journals which can survive their first publication. To the best of my knowledge, most professors spend their times writing newspapers op-ed or acting as expert witnesses. It's a pity, but I cannot blame them entirely.

    The Problem of Compensation and Lack of Funding

    There are two key issues relating to the poor performance of our professors and journals. First, it's the lack of compensation . It's just too small compared to their US counterparts! A US law professor in a prestigious law school can obtain around US$150,000 dollar per year. By Indonesian standards, this is ridiculously huge. Even the salary of a senior lawyer in a first class Indonesian law firm does not reach that amount. The last time I heard about the salary plan for a professor in University of Indonesia, it's around Rp10 million per months or around US$14,000 per year (not clear though whether this is a gross or net amount). For junior or mid term lecturer, the salary is even lower.

    The fact that the legal status of some state universities is in turmoil does not help solving the above problem. Not only that it is not clear how universities should be able to procure their own internal funds, the employment status of their lecturers are confusing. What are the incentives then for them to focus on doing useful research and producing high quality academic products?

    A major source of this compensation problem is lack of university funding. I must admit, there is a huge discrepancy of school fees between Indonesia and United States and it affects the overall compensation for the professors and lecturers. Imagine this, between 2001 and 2005, my yearly tuition fee for studying at the Faculty of Law, University of Indonesia is around US$250 (assuming that US$1 is equal to Rp9,000). That is 1/192 of my current tuition fee at the University of Chicago. I know that University of Indonesia's tuition fee has increased considerably within the last 6 years, but I am quite certain, it is still far away from our US counterparts.

    Tuition fee is the primary source of university funding, other than sponsors and donors. That's the hard fact. Asking universities to cut down their fees while requiring them to maintain or even improve their quality is absurd. Asking the government to finance the entire education costs is also difficult, especially in a period where we don't know whether having a government is worse than having no government at all. Two basic principles that should be adhered: (i) great education does not necessarily have to be cheap and (ii) people should not be discriminated from getting high quality education based on their poor financial condition. The solution? Cross subsidy between the rich and the poor.

    Another way for getting fresh money for the University is by finding a sponsor. I applause University of Indonesia's decision to bring Starbucks to the campus. If these shops can attract more money from the rich kids and they are being used to foster the University, why not? Unfortunately, instead of having realistic and pragmatic debates such as does the University get a good deal from this transaction and does the University put the money for good use, we have some ridiculous debates on whether this decision brings the University of Indonesia toward consumerism or whether it is appropriate for the University to bring Starbucks, which  is owned by a "villain" (by the way, the said villain's company owns countless major products and brands across Indonesia and I wonder whether people know that they might actually use the products without knowing who own the company, but that's for another discussion on liability of shareholders and their companies), to the campus area.

    As long as this funding issues cannot be solved, I do not expect that the life quality of the professors and lecturers can be significantly improved and the incentives for them to perform better are getting smaller. Why do you think that professors choose to write for op-eds instead of journals? It's a gate for becoming famous, and once you're famous, Indonesian people will mostly hear what you said. Then you can become an expert witness or a speaker in seminars and workshops. The payment is quite good. Why bother doing research that produces almost nothing?

    Another people may argue that being a lecturer means devoting yourself for the betterment of the society. True, but it is hard to find those kind of people, and even if you find them, how many of them will stay the same for a long time if they can't properly feed themselves and their family. In the end, incentives matter. Compensation means a lot, and you can't expect to have a better compensation with lack of funding.


    Lack of Research Culture

    This might sound like a broken record, by the second key issue is very typical, there is a lack of research culture in Indonesia. I don't have a solid empirical data to back up my claim, but at least for the subject of law, I have not found any legal groundbreaking ideas for the past 10 years, either in the form of books or journal articles. The days where professors wrote countless books, such as the legendary Subekti and Wirjono Prodjodikoro, are over. I think the only remaining productive legal writer is J. Satrio and that's it. Most professors only publish unedited anthology of their articles and therefore it's difficult to find a coherent and systematic thinking within the book.

    I can also tell my experience during my law undergraduate study days. Most of the time, the lecturers have already summarized the reading materials to be read by the students and they instruct to student to purchase those summarized reading materials. Yes, learning is easier by this way, but it also discourage our reading and writing culture which is essential for creating a culture of research! I can tell you that living as a law student, at least in my time, was not that hard. In fact, I had plenty of leisure time during my study. If you really want to advance your own thoughts, there are no other ways than investing your own time to read materials and write by yourself. For some people this is good, meaning that they will have additional time to learn new things without having to cope with too many tasks from the school. The ultimate question is, how many people actually choose this way?

    Since the professors and lecturers don't have enough time to maintain their student (i.e. too busy to do other additional jobs), they usually don't give the students plenty of reading materials or ask the students to make papers. Even if they do, papers are usually made in group. Furthermore, since they won't have much time to read too many papers, grades are usually determined by a mid test and a final test. If you have read the summarized reading materials, I can assure you that you should be able to obtain good grades. Thus the vicious circle of our legal education is created. The lecturers have little incentives to conduct academic researches nor to encourage students to do their own research and the students also have little incentives to give extra effort in their study since in the end of the day, they can always survive the test by only reading the summarized reading materials. Life is easier, of course, but it's a dull one.

    To solve this vicious circle, there is no way other than giving the correct incentives and I say the first priority should be given to the academics since they are the life and blood of the university. Without them, there would be no one to educate the students. So compensation should be the start.

    To close this post I want to show the irony in Indonesia with respect to the quality of the University outputs. The admission test in Indonesian Universities is extremely competitive. I bet that getting admitted at the University of Indonesia is harder than getting admitted at Harvard (in terms of the amount of people submitting their application and the percentage of those who are eventually admitted). Yet, with such rigorous application process, we are not yet able to produce the quality of output as good as Harvard. Isn't that a waste of time? Collecting the best of the best of Indonesian young students but fail to nurture their maximum potential. Let us do what we can to contribute for the betterment of our legal education system.
  • The Validity of Slavery under Islamic Law (A Short Review of Bidayatul Mujtahid)


    As previously mentioned in my post, I've been doing a research on the validity of slavery under Islamic Law as a part of establishing a general theory of Islamic Law. While I have collected many new books and law journal articles on this issue, trying to find empirical evidence of how classical Islamic legal scholars took it, I've just realized that I missed one of my important sources that has stayed with me for years, Bidayatul Mujtahid, a superb comparative fiqh book written by Ibn Rusyd, a prolific and famous Islamic legal scholar (though most western people know him as a philosopher rather than a jurist). The book is considered as a masterpiece and is still used in various Shari'a faculties around the world as teaching materials, even though it was written around 800 years ago (or around 600 years after the birth of Islam).

    So a couple of days ago, I read again the Indonesian and English versions of Bidayatul Mujtahid and I found out in the Jinayat (penal offenses) section, Zina (unlawful intercourse) sub section, that having an intercourse with your own slave (whether you're marrying or not marrying the slave) is not considered as a penal offense. In fact, Ibn Rusyd states in such sub section that this has been agreed by all of the Islamic legal scholars (as of his time). The sub section also discusses certain other issues such as the legality of having a sexual intercourse with other person's slave (with the master's consent), or whether a father is free to have a sexual intercourse with his son's slaves or a man to have a sexual intercourse with his wife's slaves. Although Ibn Rusyd recorded that Islamic legal scholars were still in debates on the validity of these actions, several of them have already considered those acts as permissible without the necessity of imposing any penal sanctions.

    Upon reading this, I quickly understand that slavery is indeed not prohibited under classical Islamic Law. The legal logic is simple: you can't validly have a sexual intercourse with your slave if slavery is legally prohibited. This is also supported with the fact that some scholars allow a person to enjoy other person's slaves with prior approval on the basis of asset's transfer! On technical legal issues, I salute these classical scholars for being innovative, but isn't that mean that slavery still existed even 600 years after the birth of Islam and people still think it as an ordinary legal action? 

    Now I wonder, if we know that slavery is  valid and permissible under Islamic Law, and the Koran never says that it is prohibited, nor condemns the act, can we now prohibits slavery? Under what basis? That this is a law that should be changed in accordance with the situations and conditions? Why can't we do the same with other Islamic law subjects? If we prohibit slavery, can we be considered as breaching God's rules by prohibiting things that have been declared as permissible?

    As a separate note, you might be interested to know that modern scholar like Wahbah Az-Zuhaili still allows slavery of women and children in terms of war prisoner to the extent that they can be distributed as war's spoil (ghanimah). You can refer to his discussion in Fiqih Islam Wa Adillatuhu, General Fiqh Section, Jihad - War Prisoner sub section (it's in the 8th book of his book's Indonesian version).

    Interesting issues to be followed up. Let's see whether I can finish my research during my study at University of Chicago.
  • Definition of Witness: A Grammatical Misunderstanding


    On 12 August 2011, the Indonesian Constitutional Court issued its decision concerning judicial review of Law No. 8 of 1981 on Criminal Procedural Law ("Criminal Procedural Law"). You can download the decision here. Under the decision, the Constitutional Court deemed that the definition of a Witness should be amended from "a person who can give testimony for the purpose of investigation, prosecution, and trial on a criminal case which is heard, seen and experienced by him/herself" to become "a person who can give testimony for the purpose of investigation, prosecution, and trial on a criminal case which is not always heard, seen and experienced by him/herself".

    According to the Constitutional Court judges, the definition should be amended since based on grammatical interpretation, the term "is heard, seen and experienced by him/herself" refers specifically to the criminal case itself. As such, such definition will violate the rights of the defendant to bring witnesses that might support him in the trial process such as alibi witnesses that probably do not see, hear or experience the relevant criminal case (because the criminal case does not occur).

    I have to say that this is an issue of simple grammatical misunderstanding and the solution provided by the Constitutional Court creates another problem. Grammatically, there are two ways to read the above clause: (i) the term "is heard, seen and experienced by him/herself" refers specifically to the actual criminal conduct; or (ii) the term "is heard, seen and experienced by him/herself" refers to the testimony/information given by the witness in relation to the case at hand. In cases where we use plain meaning technique to interpret the text of law, we must also rely in the principle that plain meaning approach can only be used when it would not lead to an absurd result. Surely, using the first interpretation will bring significant trouble in practice.

    As a comparison, under the US Federal Code of Evidence, a witness may not testify to a matter unless evidence is introduced sufficient to support a finding that the witness has personal knowledge of such matter. This is common sense, a witness can only testify about things that he/she really knows. In line with that, I am certain that the second interpretation would fit better in interpreting the definition of witness under the Indonesian Criminal Procedural Law.

    In my opinion, the solution of the Constitutional Court might create an issue concerning the competency of the witnesses. First, the fact that they don't see, hear or experience the criminal conduct by themselves does not necessarily mean that their testimony is always relevant to the case. This will open a chance for the defendant to bring any witnesses that can support him even when there is no merit of such testimony to the case, such as testimony on the character of the defendant. Trial process involves emotion and judges are not robots, and thus a good framing of the defendant is always helpful. Is this good or not? Further evaluation is needed but surely this will depend on our taste of morality and human rights.

    Second, in worst case scenario, the generality of the wording used by the Constitutional Court may also be used by prosecutors and polices for using witnesses that do not see, hear or experience the criminal case against the defendant. This is surely absurd, but judging from the absurdity of the solution, I am not surprised if polices and prosecutors exploit this loophole. Time will tell.
  • Testimony of Dead People from Twitter: Valid Evidence?


    I find this tragedy as a case with a very interesting legal feature. Basically, a boy who was driving recklessly caused the death of two of his classmates last saturday morning. How do we know about his reckless driving? Prior to their death, one of the victim shared her experience through Twitter, saying that the boy was entering a drag race with his friends as passengers! Then another victim re-tweeted the tweet, confirming the information about the boy's involvement in the drag race (I have to put a caveat here though, re-tweeting a tweet does not necessarily means that the re-tweeted tweet is true). From the news, I understand that there are two other survivors from this accident, which would be helpful as witnesses in the court. However, let us assume in this case that there is no evidence who can confirm the boy's reckless driving that night. Can we then use the written testimony of his dead friends in Twitter as the basis to punish him in the court?

    Legally, this would be a challenge. Under Article 162 of Law No. 8 of 1981 on Criminal Procedural Law ("Criminal Procedural Law"), in case a witness who has provided his/her testimony to the investigator dies before attending the trial, his/her testimony can still be read in the court. If the testimony has been given under an oath, such testimony will be treated equally with a testimony given by a witness who attend the trial. If not, I would say that Article 161 (2) of the Criminal Procedural Law will be applicable, i.e. the testimony will not be considered as a valid evidence although the judge can use it as a supporting information in rendering his decision. In any case, if the minimum rule of two items of evidence cannot be satisfied in the court, such information will be useless.

    In our case, however, the victims were already dead before they can say anything to the investigator. Thus, I doubt that their testimony can be considered at all. I also doubt that tweets can be treated as as a Letter Evidence (alat bukti surat), since it must be supported with or made under an oath. And even if it can, it will only work if it is used in conjunction with the information found from other evidence (which is none in our hypothetical case).

    As much as I am sympathetic with the victims, I must say that I'm in agreement with the law and I would not support using informal written testimony of dead people as a valid evidence even though it might contain a grain of truth. Why? Simply because you cannot cross examine that kind of testimony and therefore it would be impossible to determine its accuracy. After all, everyone can say anything in their writings, including through Twitter, and we can't verify whether they are telling the truth without further examination.

    I can only hope that justice will prevail in this case. Remember, under Indonesian Penal Code, causing death of other people due to negligence is a criminal act punishable by maximum 5 years prison. This is not something that you can get off by simply saying that you're sorry.
  • A Second Anniversary That I Almost Forgot!


    Oh dear, it seems that I almost forgot the second anniversary of this beloved blog! I've been busy with the preparation for my post graduate study at the University of Chicago Law School, e.g. completing all of my remaining corporate lawyer work prior to leave (so that I won't have any additional homework during my study), preparing my travel to and living needs in Chicago (getting US visa and securing an apartment lease), and pulling together the learning materials (the law school database was opened already in June and I must say that I am overwhelmed with the enormous data, very exciting!).

    I hope that I can be more productive in this blog as soon as I have settled my live at Chicago. Stay tune folks.        
  • Legal Analysis Tool Kit Series: Baselines or Where Should We Start?


    Welcome to the second episode of Legal Analysis Tool Kit Series! Our today's discussion will focus on the concept of Baseline or to put it in a simple way: where should we start before we can impose a law or policy? The concept of Baseline is an interesting one because it deals with the fundamental issue of the original position of certain rights or obligations. Let me give you an example:

    In Indonesia, we have regulations on minimum wage for workers. Suppose that someone goes to the Constitutional Court and demand that such law should be annulled on the basis that it contravenes his constitutional rights of freedom to work (Article 28 D (2) of the Constitution). The basis of the claim? A company rejects him from a working position because it isn't able to pay him the minimum wage and therefore the company refuses to accept him. This is a hypothetical case since I haven't  done or read any research on the actual relationship of minimum wages and the companies' willingness to recruit new workers. For the sake of this post, let us assume that: (i) there is a big fine for companies who do not follow the minimum wage law, (ii) we are dealing with small and medium enterprises where salary of their workers is a major factor, (iii) the administrative costs for getting an exemption for the minimum wage is too high and taking a long time, and (iv) they tend to reduce their recruitment activities rather than paying new workers with the stipulated minimum wage.

    Question 1: Can we say that this minimum wage law contravenes the constitutional right of the unfortunate potential worker?

    Question 2: To what extent can the Government actively limits the rights of freedom of contract of its people? Should the Government leave them alone and deal with this issue by themselves, i.e employers are free to pay their workers provided that the parties mutually agree such arrangement?

    Question 3: What would be the position of the Government in this case? If the policy brings problem to certain members of the society but also good things to other members of the society (such as the current worker which will enjoy the minimum wage), should the Government revise such policy? On what basis? Can it say that since more people enjoy the benefit of the policy then the policy should be maintained? Is it fair for the unfortunate ones?

    The basic problem of all of the questions above is the issue of Baseline, i.e what's the original position of the Government with respect to its citizen rights to obtain work? Should the Government interfere in the first place or not? Dealing with Baseline is difficult since here we are trying to determine the original position of something to which our next actions will be greatly influenced.

    Anyway, let us try to answer the above questions:

    1. Minimum Wage and Constitutional Rights

    Some people will argue that in general, employers' position are stronger than the workers. Thus, the Government should intervene and provide protection to the weaker party. This should be the intention of the Constitution, fairness and equality for all. But will that argument work for our case? A man losing his job opportunity because the company does not want to pay its additional worker with the current minimum salary. Doesn't this fact contradict the original intention of the Constitution to protect the weaker party (if such intention exists)?

    However, with this kind of fact, do you think that we have enough basis to say that the constitutional right of the worker has been jeopardized by the existence of such minimum wage policy? Does the fact that he is actually willing to receive lower wages in order to secure a job but the current law does not permit that and therefore he loses his opportunity to get that job can be considered as a violation to his constitutional rights? In this case we need to go to the second question.
       
    2. The Limits of Government's Intervention

    To what extent can the government limits private mutual arrangements between the parties? I would say that we are now dealing with a Baseline, i.e. should Government leave us alone in our private arrangements? Or should Government intervene whenever there is a possibility that a weaker party can face unfair treatment?

    To answer the above question, I will tell you another case: A man is really in need for money to pay the medical bills for his wife and to get the money he is willing to enter into a contract which he would never enter into if he is not in dire need. Currently, he doesn't have many choices. He has asked for loans from his friends and family members and no one can provide him with the amount. At last, he found a loan shark that is able and willing to provide the loan. The loan shark believes that this man capacity to pay is rather weak and he is out of option, so he imposes an extremely high rate of interest. The man agrees with the condition, and so he receives the money to pay the medical bills.  

    If we believe that our basic rule is to always protect the weaker party, should the Government impose a law prohibiting any person to take advantages from this situation or to impose certain conditions that seem unfair in the loan agreement, whereas, as a result of which, the loan must be renegotiated to reduce the interest rate and to give better payment options for the man? Do you agree with this approach?

    Now, let us change the case a little bit. The above troubled man has a very beautiful house. He also tries to sell his house to raise some funds, but since the market is busted, no one is willing to take the offer. Suddenly, a person comes and knowing that the man is in dire needs, he offers to buy the house for just 10% of the original price. The actual economic effect of accepting this offer would be similar with receiving the highly interest loan from the loan shark. Eventually, the man chooses this option and sell his house with such terrible price. Question, should the Government forces them to renegotiate the price of the house to find a better and fair price under the rule that we must protect the weaker party? Would you support the Government's act to force these consenting parties to renegotiate the house transaction?

    Intriguing isn't it? I would like to know whether your opinion would differ for these 2 cases. To be consistent, the answers for these cases should be the same. Why? Because the economic effects are just the same and both deals are made within an unfair condition, i.e. the man doesn't have many options, is willing to enter into bizarre contracts, the necessity for paying the medical bills is high and he doesn't have much time. But I bet that most of you will say yes for the first case and no for the second case. I would happy to hear other opinion in this matter.

    Anyway, the thing that I want to show you here is the fact that it is really difficult to determine the Baseline for    Government intervention. Deciding the case on a case by case basis would most likely costly, and avoiding such cost is one of the reasons for stipulating a general law that could be applicable for any cases. And speaking of that, it's the right time for us to move on to Question 3.

    3. The Government Option

    For the last question, we understand from the above case that some people will receive benefits from the minimum wage policy (current workers) and some won't (potential workers). If we say that the protection for weaker party is necessary for the sake of fairness and equality, how could we justify the fact that this policy may also hurt the parties that we're supposed to protect?

    More interestingly, if in the end the Government chooses to maintain the policy on the basis that more people are being protected, do you think we can still justify this act under the name of equality and fairness? To be honest, this would be another form of implementing cost and benefit analysis in designing public policy, i.e.: if the overall costs are higher than the overall benefits, the Government should not pursue such policy. Some philosophers attack this approach as something that against the concepts of fairness and equality. If we calculate that the costs of protecting minorities are higher than the benefits, why bother making policies that protect them?

    I would stop at this point as my main purpose with this article is to conduct a training of thought. In public policy and law designing, there are no easy answers and determining the Baseline would always be something that we have to analyze carefully. Hope this is useful.

  • Toward a General Theory of Islamic Law (Work in Progress)


    Islamic Law is one of my most cherished fields as a lawyer and during my 10 years experience in the art of law, I have done a lot of research and read hundreds of books on Islamic law. Nevertheless, until today, I have not found a general theory of Islamic law that can answer these ultimate questions in a satisfactory way:
    1. Are Islamic laws (specifically those stated in the Koran and Hadith) opened to any changes in the society?
    2. Should Islamic laws be applied as they are, without any consideration of the situation and condition?
    3. Suppose they can be changed in accordance with the situation and condition, what part of the laws that are immutable and those that can be considered as changeable?
    4. Are there any consistent methods of interpretation to be used in applying Islamic laws in accordance with the situation and condition?
    In reality, there is no unity in the application of Islamic law in any part of this world except for certain undisputable items such as syahadat as the first requirement to enter Islam, 5 times a day prayer obligation, mandatory ramadhan fasting period, mandatory zakat payment, and hajj. You can call yourself a moslem if you perform those basic obligations, but I can assure you that there are many specific legal issues relating to such obligations that are still being disputed until today, and this is only for the Ibadah aspects. In muamalah aspects, you will see countless arguments and counter arguments on whether a law should be applied as it is or not. Different countries have different interpretation of the application of Islamic law, and most of the time, it is hard to assess whether the argument used to interpret the law in one case is consistent with the argument used to interpret another case. The actual implementation depends on many factors, such as political will, the applicable majority Islamic legal school, acceptance by the society, etc.

    The above fact is very interesting. It is easy to find people out there who claim that good moslems must follow the Islamic laws as directed by God and the Prophet Muhammad. Some even going further by declaring those that oppose the implementation of Islamic law as followers of heresy. This is an absurd claim. As evidenced by more than 1,500 years of history, people are still arguing and will always argue on what laws to be followed. If you can't reach an agreement on the law to be applied, how can you force someone to follow such law?

    It is my dream that someday I can build a general theory of Islamic law that will solve the problem of unity and consistency within the Islamic legal system and legal interpretation. However, in order to achieve such hard task, I refuse to use the standard deductive reasoning used in classical Islamic legal theories book (ushul fiqh). With new development in social sciences and abundant database of cases and precedents all around the world, this is the right time to build a whole new level of Islamic legal theory which will work in practice.  You would be surprised to find that for the last 1,000 years, there aren't many developments in the art of ushul fiqh.

    Most books that I read still use the similar pattern: definition of ushul fiqh, the 4 main sources of Islamic law: Koran, Hadith, 'Ijma (the collective agreement of the ulemas), Qiyas (analogical reasoning). Then we go with some standards Islamic legal interpretation methods whose validity are still being debatable such as: istihsan (juristic preference), istislah/maslahah mursalah (application of law based on the needs of the society, similar to welfarism), 'urf (customary practices) and syar'u man qablana (the law of generations before Islam). Further, we will have some basic grammatical interpretation methods for the Koran, some basic sciences of Hadith, i.e. analyzing the validity of the Hadith through link of narrators, and simple methods to analyze cases where there are conflicting legal norms. Books that discuss these legal interpretation method in depth are very rare to find, at least that's my experience.

    Some of you may think, why the hell a corporate lawyer like me would like to spend his time discussing Islamic laws? Well, to be honest, when I'm still an undergrad student, I focused my research on Islamic legal theories, specifically istislah. I wrote many papers using istislah as my basic legal theory, including my own thesis and a paper that won a national legal writing competition. So yes, I can say that I have sufficient exposures to say that there aren't many developments in the field of Islamic legal theories. I would welcome any different view on this particular issue though.

    So what should we do about this? As I said above, it's my dream to build a general theory of Islamic law. The process should be started by first collecting the different trends of interpretation of Islamic laws used in various cases and countries around the world which is essential in knowing whether the laws are applied as they are or with any modification. Next, we need to find the reasoning behind those interpretations and analyze whether such interpretations have been used consistently for all similar cases. We would also need to analyze the effect of such laws to the society, i.e. does the law work? Does it promote the betterment of the society? Hopefully, from these various data, we can start to establish a general legal theory that will work across the world.

    Some interesting samples worth to think about that I found during my research:

    1. Under classical Islamic laws, divorce is the right of men and can be done directly without having to wait a court order. This is not the case in Indonesian Islamic law as a divorce can only be done through a court process.
    2. Under classical Islamic inheritance laws, the existence of female children does not block the rights of the deceased's brothers and sister, and commonly, the rest of the inheritance assets will go to the father as an ashabah (since a female child only receive half of the assets) if there are no other family members. Under Indonesian Islamic law, children, female or male, close the rights of the deceased's brother and sister, and the remaining assets will be shared equally.
    3. An empirical research on the application of Pakistan criminal laws for homicide (see The Application of Islamic Law Criminal Law in Pakistan by Tahir Wasti) shows that such implementation does not reduce the crime rate, and in practice allows murderer to be free through diyat (blood money) mechanics, especially powerful people who can buy their freedom by paying the victim's family.
    4. Ever wonder whether slavery is strictly prohibited under the Koran? Yes, freeing a slave can be a way to purchase a seat in the heaven, but there is no verse in the Koran that declares slavery as an evil act or considers slavery as a criminal activity with penal sanctions. More on this after I finished my readings on various literature about Islamic law and slavery.
    I must admit that I am on crossroads with my research focus, should I choose Islamic law as my primary interest instead of corporate law and law & economics? Whatever my final decision would be, this is still in my agenda, a work in progress. Currently, I'm still in the process of collecting the data. The plan is to spend some of my time in Chicago to finish the rough manuscript. I would expect that the process may take years before I can be satisfied with the results, so wish me luck :).
  • On The Future of Lawyering


    Here is a rather gloomy article on the future of lawyering. I would say that while some US and UK law firms might face serious problems, the same thing is not happening in Indonesia, or rather, not happening yet. Will it someday happen? Might be, but I doubt that it will be soon.

    The main issues raised in this article are among others: globalization (i.e. legal outsourcing), super expensive bills, and technology innovation that might reduce lawyers' administrative work. Compared to Indonesia, all of these issues are not relevant.

    There is no incentive in Indonesia to do a legal outsourcing, especially to India, simply because the costs might be very similar. Expensive bills might be a case, but for most of foreign and local clients, Indonesian firm bills are still cheaper compared to international law firms (in terms of sophisticated projects) and surely Indonesian firms have a better understanding about Indonesian law in any case. Technological innovation? Yes it will help lawyer's job. But can it replace the lawyers? I really doubt it. It would be foolish to think that technology will replace lawyers completely or reduce their existence significantly in the future.

    In my opinion, the legal market in Indonesia is strong. There are still a lot of works to do and there are also many types of clients and law firms. In this case, specialization is very important, either you want to focus on administrative tasks or chase the bigger fish and work on sophisticated transactions. In fact, even simple transactions need the expertise of lawyers. I've seen too many examples of poorly drafted contracts which will open an endless debate between the parties whenever their relationship goes sour, and yet, the transactions are not even that complicated.

    One thing to remember though, while Indonesian lawyers might enjoy the current strong legal market, we should always remember that business always evolves. In the end the practice of lawyers will need to go with the applicable market practice and law firms must always be ready for such changes. As the law has evolved for thousands of years, lawyers should also do the same. That's why it is important to build an institution, a firm that will live on even when all of its founding partners have died or left the firm, a firm that can produce the next generation that will maintain the stability of the firm, generate new clients and income, and adapt to the ever changing world. Can Indonesian lawyers do this? Time will tell.
  • A Great Source for Articles on Tort Law


    A very good source on various articles on Tort Law. I am still confused though, should we elaborate Tort Law based on the concept of justice or this is simply about pure economic matters? Hopefully you can find the answer in the articles listed there. Happy reading.
  • In Need of Better Coordination Among Government Officials


    Here is an interesting article on coordination among government officials. Apparently, the United States faces the same problem with Indonesia, a lack of coordination between officials. I guess this is the problem when we have too many regulators. Some classical legal scholars argue that there are 3 pillars of a government: (i) the legislative (the house of representatives), (ii) the executive (the president), and (iii) the judicial authority (the court). However in this modern world, we need to add another pillar of government, the quasi-regulator a.k.a government agencies. Some examples in Indonesia: the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) and the Investment Coordinating Board (BKPM). Not to mention that specific ministries also have authorities to issue technical implementing regulations. The Ministry of Communication and Informatics could be a good example as this ministry governs many important sectors such as broadcasting and telecommunication.

    From my experience, there is definitely a lack of coordination among government officials. To be honest, I don't understand why these guys don't meet and start to seriously work together in formulating clear and consistent policies, especially for sectors with high economic impacts. For ministries, this should be coordinated by the Coordinating Minister and supervised by the President, but I guess, that's still a dream in Indonesia.

    By the way, the last time I joined a coordination meeting among different ministries for issuing a simple government regulation, it was a mess. Some officials only talk about the old precedent and don't want to make changes (which are actually necessary) simply because they need to discuss it again with their respective ministries. No coordination, no decision maker, and to add the problem, they don't want to listen to suggestions if those are not covered in their manual. Sometimes I wonder, with this kind of government officials, do we actually need a government to survive?

  • The Protection of Criminal Suspects in Law and Economics Perspective

    Forthcoming in Jurnal Teropong Edisi RUU KUHAP 2015 | 23 Pages | Posted: 10 May 2015 | Date Written: April 28, 2015

    Public Choice Theory and its Application in Indonesian Legislation System

    24 Pages | Posted: 8 Oct 2012 | Last revised: 8 Nov 2014 | Date Written: October 8, 2012

    Special Purpose Vehicle in Law and Economics Perspective

    Forthcoming in Journal of Indonesia Corruption Watch, 'Pemberantasan Kejahatan Korupsi dan Pencucian Uang yang Dilakukan Korporasi di Sektor Kehutanan', 2013 | 15 Pages | Posted: 22 Aug 2013 | Date Written: August 18, 2013

    Legal Positivism and Law and Economics -- A Defense

    Third Indonesian National Conference of Legal Philosophy, 27-28 August 2013 | 17 Pages | Posted: 22 Aug 2013 | Last revised: 3 Sep 2013 | Date Written: August 22, 2013

    Economic Analysis of Rape Crime: An Introduction

    Jurnal Hukum Jentera Vol 22, No 7 (2012) Januari-April | 14 Pages | Posted: 12 Nov 2011 | Last revised: 8 Oct 2012 | Date Written: May 7, 2012

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