Unnes Law Journal

Navigating Regional Regulatory Changes in Indonesia: An In-Depth Analysis of Post-Amendment Implementation of Law Number 12 of 2011 on Legislation Formation

Bayangsari Wedhatami — 2023-10-31

In the context of Indonesia as a State of Law, the imperative role of the rule of law cannot be overstated in realizing the state's objectives. The formulation of Legislative Regulations, essential for upholding the rule of law, necessitates meticulous consideration of three fundamental principles: benefit, justice, and legal clarity. To ensure the effectiveness of these regulations in aligning with the direction and goals of national legal development, the process adheres to key principles, encompassing the clarity of objectives, appropriate institutional involvement, congruence among types, hierarchy, and material content, practicability, clarity of formulation, and transparency. This procedural framework is consistently implemented in a sustainable, coordinated, and integrated manner. The legal landscape in Indonesia underwent significant transformations with the enactment of Law Number 11 of 2020 on Job Creation, introducing the omnibus law technique. However, the subsequent Constitutional Court Decision Number 91/PUU-XVIII/2020 provisionally deemed this law unconstitutional. Responding to this decision, Law Number 12 of 2011 underwent a substantial amendment through Law Number 13 of 2022, specifically addressing the omnibus approach and enhancing meaningful public participation in statutory rule creation. This legal revision significantly influences the development of legal instruments at the regional level. Consequently, an examination of the implementation of regional legal product formation becomes imperative post the amendment of Law Number 12 of 2011 on the Formation of Legislative Regulations.

Legal Dynamics of Limited Liability Companies: Unveiling the Power of Commissioners and Shareholders to Take Legal Action Against Directors' Negligence

Sufiarina Sufiarina — 2023-10-31

The Limited Liability Company (LLC) is characterized by its distinct juridical entity, effectively segregating its management group from shareholders. Operating as a business entity, the primary goal of an LLC is profit generation. Functioning as a corporate legal entity with legal personality, an LLC comprises three key organizational components: the General Shareholders’ Meeting, Directors, and Commissioners. Directors, or the Board of Directors (BOD), bear the responsibility of managing and representing the LLC both within and outside the legal realm. The position of BOD is mandated to be occupied by a natural person, or 'naturlijk person,' either as a single individual (Director) or collectively by two or more individuals (Board of Directors). Despite a stringent selection process for board positions, the inherent nature of directors as natural persons introduces the possibility of intentional or negligent errors in management, potentially leading to financial losses. In the face of such negligence, the pertinent question arises: can a commissioner (Board of Commissioners) and/or shareholders initiate legal action against a director or BOD, whose legal standing is as the company’s representative? To address this query, a comprehensive library research initiative is undertaken, focusing on the analysis of Article 97 and Article 98 of the Limited Liability Company’s legal statutes. This examination aims to elucidate the viable courses of action that can be pursued against the company in the event of directorial negligence. The research findings reveal that specific commissioners and/or shareholders, in the absence of a director's power of attorney, are granted the authority by the LLC’s legal statutes to initiate legal proceedings against the director or board of directors in a court of law.

Legal Review of the Validity of the Use of Smart Contracts in Business Transactions in Indonesia and Its Regulation in Various Countries

Muhammad Ilman Abidin — 2023-10-31

The increasingly massive use of the internet is now affecting the economic world which is characterized by the birth of E-Commerce. E-Commerce mechanism that does not brings together sellers and buyers directly, this raises a variety of problems on the subjective and objective terms of the sale and purchase agreement. Smart Contracts are actually different from conventional contracts written on paper. They are also different from electronic contracts. A clause in the agreement, which takes the form of programming code, requires blockchain as a distributed storage technology, which sets them apart. In addition, Smart Contracts serve to execute contracts automatically. Therefore, the article aims to analyze the advantages of Smart Contracts compared to conventional contracts and how the validity of using smart contracts in Indonesian law, and why business transactions in Indonesia should start using smart contracts. The result obtained is that the use of Smart Contracts are completely automated and rely on software logic, making them transparent and visible to all parties involved. The use of Smart Contract in buying and selling transactions is considered very important considering the advantages in terms of security, verification, changes in the contents of the agreement, and evidentiary power. As for Indonesian law, the use of Smart Contracts is permissible as long as it does not violate the validity of the agreement as stated in the Civil Code. The use of Smart Contracts offer several advantages over traditional contracts, including trasparency, autonomy, speed, accuracy, security, and savings.

The Conclusive Phase of Civil Case Resolution: Examining Execution and Post-Decision Challenges in Indonesian Civil Procedural Law

Retno Kus Setyowati — 2023-10-31

The culmination of a civil case in court is marked by the crucial step of decision implementation, commonly known as execution. Execution can only proceed when the decision attains permanent legal force ('inkracht van gewijsde'). While the losing party may voluntarily execute the decision, failure to fulfill stipulated obligations empowers the winning party, the plaintiff, to seek forced execution. Despite the irrevocable legal status of a decision, as signified by its permanent legal force, Indonesian civil procedural law affords opportunities for litigants and third parties to reassess such decisions. This reassessment is facilitated through challenges or rebuttals, as outlined in Article 195 paragraph (6) HIR, Article 206 paragraph (6) Rbg, Article 378 RV, Article 279 RV, and is guided by the Ius Curia Novit principle, as affirmed in Article 10 of Law Number 48 of 2009 concerning Power Justice. Utilizing a normative juridical approach, this study relies on secondary data to explore the nuances of execution and post-decision challenges, drawing on primary legal materials, secondary legal materials, and tertiary legal materials.

Analyzing Subjective Defects in a Civil Tortious Lawsuit: Inconsistencies between Posita and Petitum in the Control Assumption of the Testator’s Estate (Case No. 415/Pdt.G/2022/PN.Jkt.Brt)

Azmi Ansyari — 2023-10-31

Referring to a civil case number 415/Pdt.G/2022/PN.Jkt.Brt, the plaintiffs who are the testator’s wife and daughter file a Tortious lawsuit against the defendant for an unlawful act. The plaintiffs describe the unlawful act as taking control of the estate by the testator sibling who has a mutual agreement between the defendant and the testator’s wife. This has happened prior to the distribution of the estate among the rightful heirs. The panel of judges who have reviewed the case in question, give a verdict of ‘an inadmissible lawsuit claim.’ The point of interest that the writers want to bring up and research on is the reason behind judges’ verdict that has made the case as a “niet onvankelijke verklaard'' case. To elaborate further, doctrinal research is done on the principles of civil procedural law, especially the relationship between the type of civil litigation with its legal arguments (‘posita’) and the legal claims (‘petitum’). The research results show that there are major inconsistencies between the type of civil litigation that has been filed with the content of ‘posita’ and ‘petitium.’ The plaintiffs file a tortious lawsuit at the district court while their ‘posita’ are mixing between undistributed testator’s estate and the defendant’s action of taking over the estate that is based on an agreement. Besides that, the legal claims have a few mix-ups, including demanding to state a tortious act by the defendant, petitioning the court to invalidate the mutual agreement, and seeking the court’s determination of heirs. In a tortious lawsuit, the plaintiffs shall seek compensation for their losses. As an advocate, it is expected to have an awareness in preparing a good and proper legal argument and claims in a civil lawsuit. These inconsistencies yield an inadmissible lawsuit; hence the plaintiff’s legal interests cannot be served through civil legal proceedings.

Claims for the Rights of Third Parties in Good Faith Against Confiscation of Goods in Corruption Criminal Decisions

Melkianus Ndaomanu — 2023-10-31

The judge has the authority to impose additional criminal decisions in criminal acts of corruption in the form of confiscation of goods belonging to third parties in good faith. Article 19 Paragraph (2) of the Anti-Corruption Law states that third parties who have good intentions can claim their rights (object) to the confiscation of goods in a corruption crime decision no later than 2 (two) months after the court decision is pronounced in a hearing open to the public. However, the Corruption Law does not clearly regulate how to submit and examine objections so that in practice there are differences in interpretation by the applicant, respondent and judge in submissions and examinations at trial, so that there is no guarantee of unity and certainty in the legal application of rights claims (objections) to confiscation of goods in the decision of criminal acts of corruption. The legal problem that arises is what are the regulations regarding the submission and examination of claims (objections) of third parties who have good intentions regarding the confiscation of goods in the decision of a criminal act of corruption? Regulations regarding the submission and examination of claims for the rights of third parties in good faith regarding the confiscation of goods in decisions regarding criminal acts of corruption, including the legal position of the parties, method and time of submission, authority to adjudicate, evidence, and legal remedies and implementation of the decision.

Function of Non-Judge Mediators in Divorce Settlement Through Religious Courts

Mardalena Hanifah — 2023-10-31

Marriage is carried out until the death of one of the husband and wife. In certain conditions, some things require the dissolution of a marriage, meaning that if the marriage relationship continues, harm will occur which will lead to divorce. Mediation as an out-of-court dispute resolution process is used by courts as a divorce settlement process. Mediation is carried out by a mediator, both a judge mediator and a non-judge mediator. The problem discussed is how to resolve divorce cases through mediation by non-judge mediators in the Religious Courts. The research method used is empirical research with qualitative analysis. Qualitative analysis is a study related to the integration of the substance of laws and regulations on divorce mediation and resolution in Religious Courts. Based on the results of research, the mediation process in the Religious Courts must be carried out by PERMA Number 1 of 2016 concerning Mediation Procedures in Courts, in line with islah as a peacemaker in Islam which has been carried out in the Religious Courts by mediator judges and non-judge mediators. The results of the study show that the success rate is very low. The cause of the failure of divorce settlement through mediation in the Religious Courts is the parties have the intention to divorce, making mediation only a requirement. In addition, the effectiveness of the mediator's function comes from the mediator's skills in handling divorce cases and the awareness of the parties to improve the household and the need for laws on mediation.

Challenges Arising from Article 22(2) of Ministerial Regulation ATR/BPN No. 6/2018 on Complete Systematic Land Registration (PTSL) Pertaining to Insufficient or Missing Evidence of Community Land Ownership

Fida Nabilah Taufiq — 2023-10-31

The Complete Systematic Land Registration (PTSL) program's successful implementation hinges on satisfying the physical and juridical data requirements for individual land plots owned by a single person. However, our research highlights disparities between juridical and physical data for specific land plots. Moreover, a lack of community awareness regarding the crucial role of land data collection presents significant challenges in the field. A notable obstacle, as outlined in Article 22(2) of the Regulation of the Minister of Agrarian and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia No. 6 of 2018, pertains to individuals applying for land registration through the PTSL Program without fulfilling complete requirements or providing proof of land ownership. This non-compliance poses a potential catalyst for disputes during the PTSL land registration process. As of early 2017, Indonesia harbored 126,000,000 land parcels, with only 51,000,000 certified and 79,000,000 awaiting official registration, earmarked for acceleration through PTSL. Our focus on Malang Regency in East Java, spanning an expansive 3,534.86 km² or 353,486 ha, reveals its active participation in the PTSL program. Notably, the region faces a substantial PTSL quota of 55,000 land parcels in 2023, distributed across 19 villages in 5 sub-districts, marking the highest quota in East Java Province. The research also underscores the pressing need for enhanced community awareness and compliance with PTSL requirements, particularly focusing on the potential disputes arising from inadequate documentation during the land registration process.

Analyzing Legal Ramifications for Auction Winners: A Case Study of Bekasi and Makassar Court Decisions on Auction Cancellations

Dwi Handayani — 2023-10-31

This article starts with the auction of the valid execution and in accordance with the minutes of auction of the Bekasi State Wealth and Auction Service Office (KPKNL) Number 225/2013 with the winner of the auction in good faith, but the auction was canceled by the court in the decision of the Bekasi State Court Number 412/Pdt.G/2015/PN.Bks on the claim of the legal owner of the collateral object against Auction applicant. The creditor filed for the execution of the dependent rights under Article 6 of the Law on Dependent Rights Number 4/1996 on the basis of default. Furthermore, the decision was appealed and then continued with cassation and finally the Review of case Number 664PK/PDT/2020 with the decision to reject the application for cassation and Judicial Review. Weaknesses in the auction rules result in the rights of auction winners not being accommodated and not protected by law. This article is interesting to researched and is the first time it has happened and has not been regulated in the Technical Guidelines of the Minister of Finance Regulation Number 213/PMK.06/2020. As a comparison, the case in Makassar State Court Number 73/Pdt.G/2023. With the method of statutory approach, cases, and theories of laws, then analyzed in the way of legal reasoning, and interpretation of laws. The results showed the legal consequences of the rights of the auction winners due to court decisions, namely experiencing material losses that must be borne by the Bekasi District Court decision. Solutions offered, updating the Vendu Reglement Ordonantie on the conduct of auctions in Indonesia; perfecting PMK Number 2013/PMK.06/2020 concerning technical guidelines legal. The purpose of the study, to examine the legal consequences of the rights of auction winners because the court decision that decided the auction has no legal force.

Practice of Applying Affidavits in Bankruptcy Law and Postponement of Debt Payment Obligations

Rado Fridsel Leonardus — 2023-10-31

Civil law regulates the means of evidence as outlined in Article 1866 of the Civil Code/Article 164 HIR/Article 284 RBg which consists of written evidence, witness evidence, allegations, confessions and oaths. The existence of an Affidavit certainly makes it easier to resolve a Civil Case, especially in cases regarding Bankruptcy and Postponement of Debt Payment Obligations. The existence of an Affidavit is one aspect that confirms that the process of proving a legal problem in Indonesia is undergoing adjustments in line with the very rapid development of law in this Era of Globalization. The application of Affidavits in Bankruptcy and PKPU legal processes is important in their development. This research uses Normative Legal Research using the method of the Statute Approach. Article 299 of Law Number 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations explains that the procedural law that applies in resolving Bankruptcy cases and Postponement of Debt Payment Obligations is Civil Procedure Law. Written evidence is significant in the Bankruptcy Law and PKPU process, although the process still prioritizes simple evidence. Affidavit is a written statement by someone who is considered an expert containing an explanation of a particular event object, which is then signed and submitted as written evidence in the trial. In Indonesia, an Affidavit cannot be classified as an Authentic Deed and does not have perfect evidentiary properties, but an Affidavit can be used as ordinary documentary evidence to support other evidence and help judges decide Bankruptcy & PKPU cases efficiently in order to support a simple evidentiary process and considering the short examination time.

Criminalization Arrangements for Corporations (Comparative Study of Indonesia and Australia)

Muhammad Iqbal Baiquni — 2023-10-31

This research was conducted on corporate criminal liability arrangements in Indonesian legislation, with the long-term goal of harmonization of corporate criminal liability arrangements, so as to realize certainty, expediency and legal justice in law enforcement in Indonesia. To support the realization of harmonization in corporate criminal liability arrangements in the legislation, it is necessary to review corporate criminal liability arrangements in other countries, both those with the same legal system as Indonesia and with countries with a common law system, namely Australia. The research method used to achieve the research goals and targets is normative legal research with a statutory, and comparative approach method. The projected results of this study are in the form of real data on the implementation of corporate penal regulations for the National Legal System. The output of this research is in the form of published articles in accredited national journals

The Notary's Function in Drafting Fiduciary Security Deeds Involving Patent Rights as Collateral

Yohana Maranatha — 2023-10-31

Government Regulation Number 24 of 2022 on the Creative Economy outlines the implementation of the Intellectual Property-Based Financing Scheme, wherein both banks and non-banking financial institutions leverage Intellectual Property as collateral. This includes fiduciary guarantees over Intellectual Property, contracts within Creative Economy activities, and/or claims within Creative Economy activities. Notably, Patents, a subset of Intellectual Property, can serve as collateral per Article 108 paragraph (1) of Law Number 13 of 2016 concerning Patents, allowing "patent rights to be used as objects of fiduciary guarantee." The provision of funding through financial institutions, be they banks or non-banking entities, closely aligns with the collateralization aspect, involving the duties and responsibilities of Notaries. This raises inquiries into the Role of Notaries in Intellectual Property-Based Financing and the Collateralization of Patents as governed by Government Regulation Number 24 of 2022 on the Creative Economy. Employing a juridical-normative approach and incorporating interviews with relevant stakeholders involved in fiduciary guarantee deed preparation, this research aims to discern the roles and responsibilities of Notaries in drafting fiduciary guarantee deeds incorporating patents as collateral objects. Furthermore, the study seeks to establish the Mechanism for Determining the Economic Value of a Patent as agreed upon in the Fiduciary Guarantee Deed.