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INDONESIAN LAW

Indonesian Law

SIMON BUTT and TIM LINDSEY

Great Clarendon Street, Oxford, OX2 6DP, United Kingdom

Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries © Simon Butt and Tim Lindsey 2018 The moral rights of the authors have been asserted First Edition published in 2018 Impression: 1

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above

You must not circulate this work in any other form and you must impose this same condition on any acquirer

Crown copyright material is reproduced under Class Licence Number C01P0000148 with the permission of OPSI and the Queen’s Printer for Scotland

Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America

British Library Cataloguing in Publication Data Data available

Library of Congress Control Number: 2018942414

ISBN 978–0–19–967774–0

Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY

Links to third party websites are provided by Oxford in good faith and for information only. Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work.

For the Professors Hooker, Virginia, and Barry, who inspired this BFB

Acknowledgements

We wrote this book because it is what we both needed when we first started researching Indonesian law, but could not find. It is a compendium of laws with commentary that ranges from the technical-legal to the socio-political that is intended to explain how law operates in practice in Indonesia. We hope the book will be useful to scholars and practitioners, and that it will inspire more work on Indonesia’s complex legal system by future generations of lawyers.

Writing this book has taken many years, and we are grateful to the Indonesian lawyers and scholars who have generously allowed us to interrogate them, including Professor Jimly Asshiddiqie, Professor Todung Mulya Lubis, Professor Denny Indrayana, Professor Bagir Manan, Professor Jamhari Makruf, Dr Nadirsyah Hosen, and the late Professor Adnan Buyung Nasution.

We dedicate this book to Professors MB Hooker and Virginia Hooker, who have greatly guided our thinking on Indonesia and law, and have mentored both of us at various stages of our careers. They have always been tremendously encouraging and supportive of our work. Simon in particular owes a significant debt of gratitude to them: at the Australian National University, Virginia first taught him Indonesian language, and Barry supervised two medal-winning theses. Tim also wishes to acknowledge the contribution of Professor Charles Coppell to his understanding of Indonesia.

Special thanks must go to Tim Mann, Associate Director of the Centre for Indonesian Law, Islam and Society (CILIS) at the University of Melbourne and editor of the Indonesia at Melbourne blog. A talented researcher and writer, Tim played a central role in the research for this book, and it would not have been completed without him. Thorough and reliable, it has been a great pleasure to work with Tim. Any errors are undoubtedly ours!

Sarah Rennie, an Associate of CILIS and now a solicitor, also played a vital part in the research that led to this book, conducting extensive and original research across many different fields of Indonesian law. We are grateful to her for her commitment and enthusiasm. Other very capable researchers who contributed to this book include (in alphabetical order) Joey Bui, Hannah Ekers, Alexandra Haydock, Nicholas Mark, Prayekti Murharjanti, Helen Pausacker, Jessica Rae, Aditya Tumakaka, Dewi Widyastuti, and Alison Youssef.

Tim also thanks the CILIS staff—Kathryn Taylor, Ade Suharto, Helen Pausacker, Tessa Shaw, and Vicky Aikman—for providing a supportive institutional base for the research and drafting of this book. Simon likewise thanks the University of Sydney Law School and his colleagues at the Centre for Asian and Pacific Law for supporting this project, both financially and with their encouragement. Research for the book was funded in part by Tim’s Federation Fellowship (project no FF0668730) and in part by Simon’s Australian Research Council Post-Doctoral Fellowship (project no DP110104287) and Future Fellowship (project no FT150100294). We are both grateful to Oxford University Press for inviting us to write it. We are also indebted to Sri Astari Rasjid for her great generosity in allowing us to use her evocative painting, ‘A New Task for Saraswati’ on the cover.

Tim also thanks Allison Stekelenburg for her love and support, and Mimi, Sami, Nina, and, now, Gabriel, for their patience with Dad’s latest ‘chapter book’. Simon thanks Angela, Max, and Jessica for their love, forbearance, and sense of humour.

Finally, we have both written for many years on Indonesian law and politics, jointly and independently. We have drawn from some of these previous publications in different places in this book and acknowledge this in the footnotes. We have co-authored all chapters in this book, and our names appear as authors in alphabetical order.

Simon Butt and Tim Lindsey April 2018

II. LAND LAW

III. CRIMINAL LAW

IV. COMMERCIAL LAW

V. PRIVATE LAW

2.1Indonesia’shierarchyof laws

TABLES

Terminology and Citation

Because individual chapters in this book will likely be read separately from others, a translation of non-English terms used is provided in parentheses or a note the first time each term appears in a chapter. The term is also italicized on first use in that chapter. Most nonEnglish terms also appear in the glossary and list of abbreviations.

LEGAL CITATION

There is no standard citation system for Indonesian laws and judicial decisions, so we have developed our own conventions for this book.

Take, for example, Undang-undang Nomor 1 Tahun 1974 tentang Perkawinan. Many authors would translate this, correctly, as Law Number 1 of Year 1974 concerning Marriage, or would refer to it as Law 1/1974 on Marriage. We have simplified the titles of legal instruments by not translating nomor (number) and tahun (year). We thus refer to this statute as Law 1 of 1974 on Marriage.

For simplicity, ‘Law’ has been preferred to ‘Act’, or ‘Basic Law’, in translating the terms undang-undang and undang-undang pokok. Peraturan pengganti undang-undang is often translated as ‘Regulation in Lieu of Law’ but we prefer ‘Interim Emergency Law’, as this more accurately captures its purpose. We reserve ‘law’ (with a lower case ‘l’) for hukum, which means ‘law’ in a general sense.

We generally prefer ‘Decision’ over ‘Decree’ for Keputusan.

For convenience, the term ‘Article’ (pasal) is taken to cover sub-articles, paragraphs, etc. ‘Elucidation’ has been preferred to ‘explanatory memorandum’ for penjelasan.

Indonesian judicial decisions are usually referred to by case numbers and not by the names of the parties. We provide these case numbers in notes but for convenience have also developed short titles for many of the cases we discuss. Case numbers generally indicate the year in which the relevant case was lodged with the court, rather than the year in which the case was decided.

Laws passed in 2009 led Indonesian government departments to revert to the title ‘ministry’, so we generally use ‘ministry’ throughout the book.

TRANSLATION

Kabupaten is translated as ‘county’, the next administrative division below the provincial level. Largely rural, kabupaten are equivalent in status to cities. We have preferred ‘county’ as the nearest English-language equivalent rather than the more common translation of ‘regency’.

The modern Indonesian standard orthography as determined by the Indonesian Ministry of Education since 17 August 1972 is used for all Indonesian words except where ejaan lama (old spelling) is used in quotation.

In the case of names, the spelling used by the person named has been preferred where it is known, thus ‘Soeharto’ rather than ‘Suharto’. Although the first president’s name is

often spelled ‘Sukarno’ he signed his name as ‘Soekarno’, the version also preferred by his children, so we have used this spelling.

CURRENCY

As at September 2017, 1,000 Indonesian Rupiah were worth US$0.074.

INTERNET REFERENCES

All internet references were last accessed on 13 March 2018.

Table of Cases

CONSTITUTIONAL COURT (MAHKAMAH KONSTITUSI)

Decision 01–021–022/PUU-I/2003 (Electricity Law case)

Decision 011–017/PUU-I/2003 (PKI case)

Decision 012/PUU-I/2003

Decision 013/PUU-I/2003 (Bali Bombing case)

Decision 006/PUU-II/2004 (Advocates’ Law case)

Decision 065/PUU-II/2004 (Soares case)

Decision 069/PUU-II/2004 (Manoppo case).

Decision 003/PUU-III/2005

Decision 005/PUUIII/2005

Decision 003/PU-IV/2006

Decision 005/PUU-IV/2006 (Judicial Commission case)

Decision 006/PUU-IV/2006

Decision 012–016–019/PUU-IV/2006 (Anti-corruption Court case)

Decision 013–022/PUU-IV/2006 (Lèse Majesté case)

Decision 014/PUU-IV/2006

Decision 022/PUU-IV/2006.

Decision 31/PUU-IV/2006 105

Decision 2–3/PUU-V/2007 (Death Penalty case) 104, 253–4, 358

Decision 6/PUU-V/2007 (Hate Sowing case) .

199, 200, 439

Decision 12/PUU-V/2007 (Polygamy case) 453–4

Decision 14–17/PUU-V/2007 (Political Crimes case) 136, 187–8

Decision 21–22/PUU-V/2007 (Investment Law case)

Decision 14/PUU-VI/2008 (Wijaya and Lubis case) 440

Decision 16/PUU-VI/2008 (Religious Courts case) 223

Decision 19/PUU-VI/2008 .

Decision 21/PUU-VI/2008 (Firing Squad case)

Decision 22–24/PUU-VI/2008 (Female Candidates case)

Decision 50/PUU-VI/2008 (Piliang case)

Decision 51–52–59/PUU-VI/2008

Decision 53/PUU-VI/2008 (CSR case)

Decision 54/PUU-VI/2008 (Tobacco Excise case)

Decision 56/PUU-VI/2008

Decision 2/PUU-VII/2009 (Blogger’s case)

Decision 101/PUU-VII/2009

Decision 102/PUU-VII/2009 (Electoral Roll case)

Decision 104/PUU-VII/2009

Decision 110–111–112–113/PUU-VII/2009 (Sisa Suara case)

Decision 133/PUU-VII/2009 (Bibit and Chandra case)

Decision 138/PUU-VII/2009

Decision 140/PUU-VII/2009 (Blasphemy Law case)

Decision 3/PUU-VII/2010 (Coastal and Remote Areas Law case)

Decision 6–13–20/PUU-VIII/2010 (Book Banning Law case)

Decision 23–26/PUU-VIII/2010

Decision 34/PUU-VIII/2010 43

Decision 46/PUU-VIII/2010 (Wedlock case)

Decision 49/PUU-VIII/2010 (Mahendra case) 107

Decision 55/PUU-VIII/2010 (Plantation Law case) 139–42, 154

Decision 65/PUU-VIII/2010

Decision 27/PUU-IX/2011 (Outsourcing Workers case)

Decision 45/2011 (Forest Gazettal case) 154

Decision 79/PUU-IX/2011

Decision 35/PUU-X/2012 (Traditional Communities case)

Decision 36/PUU-X/2012 (Oil and Natural Gas Law case)

Decision 52/PUU-X/2012

Decision 53/PUU-X/2012

Decision 92/PUU-X/2012

Decision 98/PUU-X/2012.

Decision 1/PUU-XI/2013

Decision 3/PUU-XI/2013

Decision 14/PUU-XI/2013

Decision 28/PUU-XI/2013

Decision 34/PUU-XI/2013

Decision 67/PUU-XI/2013

Decision 85/PUU-XI/2013

Decision 100/PUU-XI/2013 (Four Pillars case)

Decision 1–2/PUU-XI/2014 (MK Perpu case).

Decision 3/PUU-XII/2014

Decision 15/PUU-XI/2014

Decision 21/PUU-XII/2014

Decision 25/PUU-XII/2014

Decision 30–74/PUU/XII/2014

Decision 68/PUU-XII/2014

Decision 112/PUU-XII/2014

Decision 35/PUU-XIII/2015

Decision 36/PUU-XIII/2015

Decision 107/PUU-XIII/2015

Decision 137/PUU-XIII/2015

Decision 33/PUU-XIV/2016.

.223

Decision 46/PUU-XIV/2016 198

Decision 56/PUU-XIV/2016

Decision 108/PUU-XIV/2016

Decision 1/PUU-XV/2017 95, 224, 230

Decision 23/PUU-XV/2017

Decision 36/PUU-XV/2017 299

SUPREME COURT (MAHKAMAH AGUNG)

Decision 601/K/Sip/1968

Decision 477/K/Sip/1976

Decision 6/PK/Kr/1980

Decision 275/K/Pid/1983

Decision 2944/K/Pdt/1983

Decision 86K/AG/1994 (Inaq Putrakimah case)

Decision 650/PK/Pdt/1994

Decision 55/PK/Pid/1996

Decision 210/K/AG/1996

Decision 01/P/HUM/2001

Decision 3/PK/Pid/2001

Decision 01/K/KPPU/2002 (Indomobil case)

Decision 03/G/HUM/2002.

Decision 19/P/HUM/2002

Decision 20P/HUM/2002

Decision 1521K/PID/2002

Decision 01/K/KPPU/2003

Decision 06/P/HUM/2003

Decision 1608/K/PID/2005

Decision 2221/K/Pid/2005

Decision 01/Arb.Btl/2006

Decision 06/P/HUM/2006

Decision 15/PK/Pid/2006

Decision 54PK/Pid/2006

Decision 109/K/TUN/2006

Decision 84/PK/Pid/2006

Decision 112/PK/Pid/2006

Decision 109/PK/Pid/2007.

Decision 2281/K/PIS/2007

Decision 8/PK/Pid/2008.

Decision 25/P/HUM/2008

Decision 729/K/PDT.SUS/2008

Decision 855/K/Pdt.Sus/2008

Decision 2156/K/Pid/2008

Decision 2710/K/Pdt/2008

Decision 07/PK/Pid.Sus/2009

Decision 12/PK/Pid.Sus/2009

Decision 41/PK/Pid/2009

Decision 84/PK/PID/2009

Decision 01/K/Pdt.Sus/2010 (Astro Nusantara International

Decision 16/PK/Pid/2010

Decision 44/P/HUM/2010

Decision 69/PK/Pid.Sus/2010

Decision 882/K/Pid.Sus/2010

Decision 109/K/PDT.SUS/2010

Decision 152/PK/Pid/2010

Decision 12/PK/TUN/2011

Decision 22/PK/Pid.Sus/2011

Decision 367/K/TUN/2011 (Churchill and Planet Mining)

Decision 42/P/HUM/2012

Decision 247/K/Pdt.Sus/2012

Decision 382/K.AG/2012

Decision 54/P/HUM/2013 (Receivers’ Fees)

Decision 60/P/HUM/2015

Decision 601/K/Pdt/2015

Decision 693/K/TUN/2015

499/Pdt/VI/1988 (E.D & F. Man (Sugar) Ltd v Yani

Lindebaum v Cohen 1919

DUTCH SUPREME COURT (HOGE RAAD)

HIGH COURTS (PENGADILAN TINGGI)

Bandung High Court Decision 38/1978/Pid/PTB

Bandung High Court Decision 463 Pid/2012/PT.Bdg

Banten High Court Decision 116/Pdt/2015/PT BTN

Jakarta Administrative High Court Decision 110/B/2011/PT.TUN.JKT (Churchill and Planet Mining)

Jakarta High Court Decision 136/PDT/2008/PT.DKI

Jakarta High Court Decision 48/Pdt/2014/PT.DKI

Semarang High Court Decision 143/Pdt/1991

DISTRICT COURTS (PENGADILAN NEGERI)

Bekasi District Court

Decision 2/K.T.S/Bks/1977.

Ciamis District Court

Decision 278/Pid.Sus/2012/PN.Cms

Denpasar District Court

Decision 29/Pid.B/2005/PN.Dps.

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