Minaret Bans in Switzerland

Islamophobia is no doubt intensively rising up in Europe particularly with regard to the recent issue on the banning of Minaret. As the result of the pool taken by Swiss voters, the construction of Minaret within Switzerland will no longer permitted. The proposal of pool is came from the Swiss People Party which are the largest party in parliament. The government, even opposed the result, but hardly accept the decision. This issue will hampering Swiss' Image particularly in moslem world. The reaction come from the official from Turkey that Moslem must also ban all products from Swiss and drawn all their money from Swiss Bank.
This decision is considerably a "phobia" sent to the Moslem community in entire Europe. The biggest problem in this issue is not the ban itself but the message and symbol sent by the voters. Who can deny that this is not a symbol of hatred and fear. Even there are still chances that the pool result will be cancelled by Swiss Supreme Court or European Human Rights Court but the message of hatred and fears has been sent to the world. The moslem community especially who live in Switzerland will feel that they are not accepted. In addition, a peaceful and harmony among the people are disturbed. Switzerland is no longer safe place for moslem to live as unreasonable pool has been taken to ban minaret while there are only four minaret in entire Switzerland. The reason that minaret is the symbol of power and tools for Islamization is truly non-sense.
European countries is recently very focus on Islamic development, not to mentioned they feared on the increasing Moslem population. Most of them are immigrant from Middle East, Asia, Africa and some are genuine European. Let see what happened in Germany that they rejected the plan of moslem community to construct a biggest moslem in Europe or we can see in France that they were very concern on banning headscarf for moslem women in public area. Not to mentioned in other side of the world that moslem were suffered in many ways.
Blessing in disguise may be the answer on what happened in Europe and America. The moslem population is highly increase after September 11. Their curiosity on Islam have dragged many European people to embrace Islam. They voluntarily read about Islam, discuss about Islam and finally open their heart to embrace Islam. It is reported that Islam has been the second largest religion in France and soon will be in entire Europe. Even its not really significant compare with others but this population issue has become a serious debate among politicians, government officials,as well as religious figures . They are debating on how to integrated Moslem with their society.
What have been concerned by Huntington on the class of civilization may have happened. The new phase of modern conflict is all about ideology and of course religious issue. Independence on determining religious choice which refers to human rights is still questioned in this regard not only for Islam but for all religion. We hope that what recently happened in Europe is not really a symbol of hatred but only a dynamic phase of different culture, religion and background. Its hopefully end up with peaceful and harmony while what is happening now is the way to the new equilibrium of harmony among religions

Teks Pidato SBY Menyikapi Bom JW Marriot dan Ritz Carlton, 17 Juli 2009

Assalamualaikum, Salam Sejahtera bagi kita semua,Bismillahirrahmanirrahim alhamdulillahirabil alamin,
Saudara-saudara, rakyat Indonesia yang saya cintai dimanapun saudara berada. Hari ini adalah titik hitam dalam sejarah kita, terjadi lagi serangan atau pemboman yang dilakukan oleh kaum teroris di Jakarta. Aksi teror ini diperkirakan dilakukan oleh kelompok teroris meskipun belum tentu jaringan terorisme yang kita kenal selama ini terjadi di bumi Indonesia, yang menimbulkan derita dan kesulitan yang dipikul oleh seluruh rakyat Indonesia.

Aksi yang tidak berperi kemanusiaan ini, juga menimbulkan korban jiwa dan luka-luka bagi mereka yang tidak berdosa. Oleh karena itu, dalam kesempatan ini atas nama negara dan pemerintahan dan selaku pribadi, maka bagi para keluarga yang ditinggalkan saya mengucapkan turut berbela sungkawa yang sedalam-dalamnya. Semoga saudara-saudara kita yang menjadi korban, hidup tenang di sisi Tuhan Yang Maha Kuasa.

Saudara-saudara, aksi pemboman yang keji dan tidak berperikemanusiaan ini serta tidak bertanggungjawab ini, terjadi ketika baru saja bangsa Indonesia melakukan pemungutan suara dalam rangka pemilihan Presiden dan Wakil Presiden, dan ketika KPU sedang menghitung hasil pemungutan suara itu. Kejadian ini yang sangat merusak keamanan dan kedamaian di negeri ini, juga terjadi ketika rakyat sungguh menginginkan suasana yang tepat, aman, tenang dan damai, dan justru rakyat ingin agar selesainya pemilu 2009 ini kita semua segera bersatu, membangun kembali negara kita, untuk kepentingan rakyat Indonesia.

Terus terang juga, aksi pemboman ini terjadi ketika rakyat merasa prihatin atas kegaduhan politik di tingkat elit disertai sebagaimana yang saya ikuti setiap hari, ucapan-ucapan yang bernada menghasut dan terus memelihara suhu yang panas dan penuh dengan permusuhan yang itu sesungguhnya bukan menjadi harapan rakyat setelah mereka semua melaksanakan kewajiban demokrasinya beberapa saat yang lalu.

Saudara-saudara saya yakin, hampir semua diantara kita merasa prihatin, berduka, prihatin, dan menangis dalam hati, seperti yang saya rasakan. Memang ada segelintir orang di negeri ini yang sekarang tertawa puas, bersorak dalam hati, disertai nafsu amarah dan keangkara murkaan. Mereka segelintir orang itu tidak memilki rasa kemanusiaan dan tidak perduli dengan kehancuran negara kita, akibat aksi teror ini yang dampaknya luas bagi ekonomi kita iklim usaha kita, kepariwisataan kita, citra kita dimata dunia dan lain-lain lagi.

Saat ini saudara-saudara disamping kita pemerintah menjalankan kegiatan tanggap darurat untuk merawat saudara-saudara kita yang menjadi korban dalam aksi pemboman ini investigasi juga tengah dilakukan. Saya telah menerima laporan awal dari investigasi yang sedang berlangsung ini. Setelah saya menerima laporan awal, saya telah menginstruksikan kepada Polri, Badan Intelejen Negara, dan badan lembaga-lembaga lain terkait untuk melakukan investigasi secara cepat dan menyeluruh serta mengadili pelaku-pelakunya, sesuai dengan ketentuan hukum yang berlaku.

Saya yakin sebagaimana yang dapat kita ungkapkan diwaktu yang lalu, para pelaku dan mereka-mereka yang menggerakkan aksi terorisme ini akan dapat kita tangkap dan akan kita adili secara hukum. Saya juga menginstruksikan kepada para penegak hukum untuk juga mengadili siapa saja yang terlibat dalam aksi terorisme ini, siapapun dia, apapun status dan latar belakang politiknya.

Pagi ini saya mendapat banyak sekali pertanyaan, atau saudara-saudara yang mengingatkan kepada saya. Yang berteori paling tidak mencemaskan, kalau aksi teror ini berkaitan dengan hasil pemilihan Presiden sekarang ini. Saya meresponnya sebagai berikut, bahwa kita tidak boleh main tuding dan main duga begitu saja, semua teori dan spekulasi harus bisa dibuktikan secara hukum. Negara kita adalah negara hukum dan negara demokrasi. Oleh karena itu norma hukum dan norma demokrasi harus betul-betul kita tegakkan. Bila seseorang bisa dibuktikan bersalah secara hukum, baru kita bisa mengatakan yang bersangkutan salah.

Saya harus mengatakan untuk yang pertama kalinya kepada rakyat Indonesia, bahwa dalam rangkaian pemilu legislatif dan pemilihanPresiden dan pemillihan Wakil Presiden tahun 2009 ini memang ada sejumlah intelijen yang dapat dikumpulkan oleh pihak yang berwenang. Sekali lagi ini memang tidak pernah kita buka kepada umum, kepada publik, meskipun kita pantau dan kita ikuti. intelijen yang saya maksud adalah adanya kegiatan kelompok teroris yang berlatih menembak dengan foto saya, foto SBY dijadikan sasaran, dijadikan lisan tembak.

Saya tunjukkan, ada rekaman videonya, ini mereka yang berlatih menembak (sambil menunjukkan foto-foto yang didapat dari badan intelijen). Dua orang menembak pistol. Ini sasarannya, dan ini foto saya dengan perkenaan tembakan di wilayah muka saya, dan banyak lagi. Ini intelijen, ada rekaman videonya, ada rekaman gambarnya, bukan fitnah bukan isu. Saya mendapatkan laporan ini beberapa saat yang lalu.

Masih berkaitan dengan intelijen, diketahui ada rencana untuk melakukan kekerasan dan tindakan melawan hukum berkaitan dengan hasil Pemilu. Adapula rencana untuk pendudukan paksa KPU pada saat nanti hasil pemungutan suara diumumkan. Ada pernyataan akan ada revolusi jika SBY menang, ini intelijen bukan rumah bukan isu, bukan gosip. Ada pernyataan kita bikin Indonesia seperti Iran. Dan yang terakhir ada pernyataan, bagaimanapun juga SBY tidak boleh dan tidak bisa dilantik. Saudara bisa menafsirkan apa arti ancaman seperti itu.

Dan puluhan intelijen lain yang sekarang berada di pihak yang berwenang, tadi pagi terus terang sebagaimana kebiasaan saya, saya ingin langsung datang ke lokasi. Tapi, Kapolri dan semua pihak menyarankan jangan dulu, karena memang belum steril, masih dibersihkan, masih disisir dan ancaman setiap saat bisa datang, apalagi dengan contoh yang saya sampaikan tadi, ancaman fisik. Tetapi tentu hidup dan mati tentu di tangan Allah SWT, tidak boleh terhalang untuk menjalankan tugas saya, untuk rakyat untuk negara ini. Dan karena pengaman Presiden itu berada di pundak TNI saya yakin TNI telah mengambil langkah-langkah seperlunya.

Terhadap semua intelijen itu saudara-saudara, apakah terkait dengan aksi pemboman hari ini atau tidak terkait, saya menginstruksikan kepada semua jajaran penegak hukum untuk menjalankan tugasnya dengan benar, obyektif tegas dan dapat dipertanggungjawabkan, dapat dipertanggungjawabkan secara hukum. Andaikata tidak terkait ancaman-ancaman yang tadi itu, dengan aksi pemboman hari ini, tetaplah harus dicegah, harus dihentikan, karena anarki, tindakan kekerasan, pengrusakan, tindakan melawan hukum bukan karakter demokrasi, bukan karakter negara hukum. Sangat jelas, atas semuanya ini, saya selaku kepala negara dan kepala pemerintahan, mengutuk keras aksi teror yang keji ini, saya juga sangat-sangat prihatin dengan kejadian ini.

Barangkali atau biasanya dalam keadaan seperti ini, banyak diantara kita yang kurang berani menyampaikan kecaman dan kutukannya, barangkali karena pertimbangan politik. Saya dengan bahasa terang harus menyampaikan seperti itu, karena demikian amanah saya sebagai Kepala Negara.
Mengapa saya sangat-sangat prihatin? Pertama, saudara tahu lima tahun terakhir ini ekonomim kita tumbuh dengan baik, dunia usaha, kepariwisataan, swasembada pangan, investasi, perdagangan, sektor riil semua bergerak, meskipun kita menghadapi krisis-krisis global yang datang silih berganti. Yang kedua satu minggu terakhir ini saja, nilai saham kita menguat tajam, nilai tukar rupiah juga menguat. Dengan ekonomi yang terus tumbuh, kesejahteraan rakyat kita sesungguhnya secara bertahap terus juga meningkat, termasuk dapat dilaksanakannya program-program penanggulangan kemiskinan, program-program pengurangan pengangguran atau yang sering saya sebut dengan program pro rakyat.

Semua itu terjadi saudara-saudara, karena tahun-tahun terakhir ini negara kita benar-benar aman dan damai. Sehingga disamping ekonomi tumbuh, rakyat kita diseluruh pelosok Tanah Air, bisa bekerja, bisa menjalani kehidupan sehari-harinya dengan tenang, bebas dari rasa ketakutan. Sementara itu citra kita di mata dunia tahun-tahun terakhir ini juga makin meningkat, karena dunia menilai negara kita makin aman, tertib dan damai. Negara kita memiliki kehidupan demokrasi yang makin mekar, serta penghormatan kepada Hak Azasi Manusia yang makin baik, negara yang ekonominya juga tumbuh, dan negara yang berperan dalam percaturan global. Bahkan, ini yang sangat memilukan, sebenarnya kalau tidak ada kejadian ini, klub Sepak bola terkenal di dunia, Manchaster United, berencana untuk bermain di Jakarta.

Saudara-saudara dengan aksi-aksi teror yang keji dan tidak bertanggungjawab ini, apa yang kita bangun hampir lima tahun terakhir ini, oleh kerja keras dan tetesan keringat seluruh rakyat Indonesia, lagi-lagi harus mengalami goncangan dan kemunduran. Lagi-lagi dampak buruknya harus dipikul oleh seluruh rakyat Indonesia, minus mereka-mereka yang melakukan tindakan yang tidak bertanggungjawab itu.

Oleh karena itu, kebenaran dan keadilan, serta tegakknya hukum harus diwujudkan. Saya bersumpah, demi rakyat Indonesia yang sangat saya cintai, negara dan pemerintah akan melaksanakan tindakan yang tegas, tepat, dan benar terhadap pelaku pemboman ini, berikut otak dan penggeraknya ataupun kejahatan-kejahatan lain yang mungkin atau dapat terjadi di negeri kita sekarang ini.
Kepada Polri, TNI, BIN, termasuk para Gubernur, Bupati dan Walikota, saya minta untuk terus meningkatkan kewaspadaan, terus berusaha keras mencegah aksi-aksi teror. Dan kemudian yang lebih penting lagi, para penegak hukum harus betul-betul mencari, menangkap dan mengadili para pelaku, para penggerak, dan otak dibelakang kekerasan ini.

Barangkali ada diantara kita, yang diwaktu yang lalu melakukan kejahatan, membunuh, menghilangkan orang barangkali, dan para pelaku itu barangkali masih lolos dari jeratan hukum, kali ini negara tidak boleh membiarkan mereka menjadi drakula dan penyebar maut di negeri kita. Saya tahu selama lima tahun ini pihak kepolisian telah berkali-kali mencegah dan menggagalkan aksi terorisme. Telah bisa menyita bahan peledak yang siap diledakkan, sudah bisa membongkar beberapa jaringan, meskipun lolos hari ini, terjadilah musibah yang sangat merobek keamanan dan nama baik bangsa dan negara kita.

Agar tugas untuk mencegah dan memberantas terorisme ini serta kejahatan-kejahatan yang lain dapat dilaksanakan dengan baik, intelijen harus benar-benar tajam. Pencegahan harus benar-benar efektif. Polri, BIN, TNI harus benar-benar bersinergi sikap lengah dan menganggap ringan sesuatu harus dibuang jauh-jauh. Ini amanah kita kepada rakyat, kepada negara.

Kepada rakyat Indonesia seraya juga meningkatkan kewaspadaan tetaplah menjalankan provesi dan kehidupan saudara secara normal. Jika ada keganjilan, segera beritahu Polri. Jangan biarkan kaum teroris beserta otaknya berkeliaran di sekeliling saudara. Saudarapun bisa menjadi korban setiap saat manakala kaum teroris itu dibiarkan merancang lagi aksi-aksi terornya di negeri kita ini. Selanjutnya kedepan, saya mengajak seluruh rakyat Indonesia, seluruh komponen bangsa, untuk marilah kita lebih bersatu dan menjaga keamanan dan perdamaian di negeri ini.

Bangsa manapun, agama apapun, kita semua tidak membenarkan terorisme, apapun motif dan alasannya. Jangan ragu-ragu, jangan setengah hati, dan jangan takut, untuk mencegah dan memberantas terorisme. Sementara itu aksi teror yang terjadi hari ini jangan pula menghalangi semangat dan upaya kita untuk membangun dan memajukan negara kita ini. Kita terus berjuang dan membikin lebih baik, demokrasi dan penghormatan HAM lebih baik, penegakan hukum, pembangunan daerah, peningkatan kesejahteraan rakyat dan sebagainya.

Memang ada kerusakan akibat aksi terorisme hari ini, mari bersama-sama kita perbaiki dan kemudian mari kita terus bangkit dan maju kembali. Kita bangsa, negara, rakyat tidak boleh kalah dan menyerah kepada terorisme. Tidak boleh membiarkan kekerasan, ektrimitas dan kejahatan-kejahatan lain, terus tumbuh di negeri ini. Tuhan Yang Maha Kuasa, Allah SWT akan melindungi kehidupan bangsa Indonesia. Dan dengan memohon ridha Allah, SWT saya sampaikan kepada rakyat Indonesia, saya akan terus berada di depan, untuk menghadapi ancaman dan tangangan ini, serta untuk mengemban tugas yang berat namun mulia ini.

Demikian pernyataan saya, terimakasih, Wassalamualaikum Wr Wb.

Indonesian Economic Outlook 2009-2010


European Joint Luncheon Meeting with Mrs Sri Mulyani: Indonesia economic condition remains strong and solid after the presidential election.

Mrs. Sri Mulyani, The Interim Coordinating Minister for Economic Affairs and Minister of Finance said that Indonesia economic condition remain strong in 2009 and easier in 2010 after the presidential election. The economic and monetary reform will continue and the government had done both fiscal and monetary policies to cover economic turbulent during global financial crisis. Fiscal policy stimulus includes; provide stimulus to company in form of tax incentive (lower tax rate, minimum threshold, tax on employee), expand infrastructure, and continue bureaucracy reform on Ministry of Finance, tax, custom, budget and treasury, and for the monetary stimulus the government had lower interest rate. Bureaucracy reform policy and decline tax rate is two major things that the government already done and it will continue after the presidential election.

Indonesia’s resilience to global crisis is better than other countries. Many business markets are still potential for investors. Business sector for agriculture keep stable, transportation and communication sector increase to 16,7 % from total GDP on 2009, despite the decrease of manufacture and trade and suffered from the export decline causing lower exports contribution. However this is can be explained that financial crisis hit most countries in the world. The Indonesian economic growth expectedly to reach 4-4,5 % in 2009, and after the consolidation time in 2010, optimistically, the Indonesian economic growth will accelerate supported by increasing of trading activities.

In the sideline of her speech, she offends her nomination to be the Governor of Bank Indonesia. It is confirmed by the state secretary that she will be nominated as the Governor of Bank Indonesia replacing Boediono who resigned to partner with the incumbent, Susilo Bambang Yudhoyono in his re-election bid. Amid the controversy of her nomination, she convinced that the reform will continue whoever will chair the Department of Finance. It is concerned that if two prominent reformist of the Department of finance moved to the Bank Indonesia, the institution reform in its department will halted. Darmin nasution, her partner for finance department reform has already moved to Bank Indonesia to replace Miranda Goeltom, the current BI senior deputy governor. Darmin is set to take office next month after Miranda’s term expires.

One-two Tier System of Governance

Author: Jože Bajuk
joze.bajuk@socius.si
http://www.socius.si/si/knjiznica/

The key novelty of the amendment to the Companies Act is its introduction of the opportunity to choose between the two-tier and one-tier systems for governing domestic public limited companies. This is indeed a true novelty since the existing legislation does not allow this choice. The key novelty brought by the amendment to the Companies Act[1] is clearly the introduction of the opportunity to choose between the two-tier and one-tier systems of governing domestic public limited companies. This is indeed a true novelty since the existing legislation does not allow such a choice, although in limited cases the law allows governance of public limited companies without supervisory boards, which should not be understood as the one-tier governance system known in _domestic_ Anglo-Saxon legal systems.

The System of Governing Public Limited Companies

In both theory and practice, two opposite governance systems have been created, the Anglo-Saxon one-tier[2] and the continental European two-tier[3] systems. Between these two, other governance systems may be classified, in fact taking individual solutions from both and therefore occupying the space between them.
There are three bodies for governing public limited companies in the two-tier system. Namely, the general meeting of shareholders, the supervisory board and the management board. Their competencies are relatively clearly delimited by the law itself. The general meeting of shareholders is primarily competent to adopt changes to the status of the company, profit-sharing and the appointment/dismissal of supervisory board members.

The supervisory board primarily supervises the operation of the management board, appoints/dismisses the management board, takes care
of the motivation of the management board and adopts annual reports. The management board conducts the company's business operations. The law also strictly restricts the option to transfer the authorities of one body to another body. Examples of such a transfer are the transfer of decision-making on the annual report from the supervisory board to the general meeting of shareholders, the restriction and tying of the adoption of the management board_s business decisions to the approval of the supervisory board etc.

The one-tier system knows two bodies of governance. They are the general meeting of shareholders and the board of directors. In its composition and competencies, the general meeting of shareholders does not differ considerably from the general meeting seen in the two-tier system. Thus, the general meeting also has the authority to appoint the company's directors. There are bigger differences in the board of directors. Its members are directors who the law itself divides into non-executive and executive types.

Theoretically, the competence of managing the company is held by the board of directors as the body of governance, however, it transfers this competence to the executive directors and for itself retains the competence of supervising their work. Here, I have to stress again that the board of directors consists of both executive and non-executive directors. A company may also have executive directors who are not members of the board of directors. It is possible to say that such companies have two types of executive directors who have different competencies, tasks and
responsibilities. Otherwise, the role of the executive directors strongly resembles the roles of management board members in the two-tier system of governance since the executive directors conduct the company's business operations.

Strengths and Weaknesses of Governance Systems
There is no universal answer to the question of which governance system is better. The reason is that corporate governance in the sense of arranging the relations between the shareholders and the boards should not be understood as merely a legal category. We must be aware that different models of governance have been formed in different economic and social systems. The one-tier system has thus been created in the Anglo-Saxon space, characterised by dispersed share structures, an active capital/securities market and, last but not least, a majority voting system[4] where the winner has very concentrated decision-making power etc. A pure two-tier system has developed in the Germanic environment characterized by majority shareholders of companies, powerful participation of the participants (employee participation), a less liquid capital market, a proportionate voting system[5] etc. The question of a better/poorer system has in fact only appeared in recent years when we started to witness serous globalisation trends in the economy. It started with the linking up of companies - multinational entities and continues with the strong tendency of shareholders to follow advanced standards of corporate governance[6]. A logical consequence of these trends and requirements is the search for the most efficient governance system which would
reduce the risk for shareholders, take their interests into account and, finally, enable the optimal level of influence by the relevant participants on the operation of capital companies.

Our advice to shareholders when choosing between one-tier and two-tier systems in the future is as follows. The practice of managing and governing companies has shown through the years that the one-tier system is probably more efficient in cases where the company has a majority or prevailing shareholder. Here, the joining together of the managerial and supervisory bodies may represent a certain advantage as there is no real conflict of interest between the shareholder and the management board. The goals and purposes of such companies are largely defined by the majority shareholder, be it a natural person or a company. The joining of the two bodies thus brings about the more efficient and faster adoption of important decisions.

There is a somewhat different situation in the relations between interests in companies with a dispersed share structure. In these companies the shareholders are unable to articulate the goals of the company as their interests differ and their only common denominator is the expectation of a yield in the forms of dividends and growth in the market price of the shares. In these cases an important role may be played by the supervisory board which is separated from the management board, with its task being, besides implementing, supervising and motivating the management board, to establish the goals and purpose of the company _on behalf of the shareholders_ or at least to constantly search for the common interest of capital owners - shareholders. Because of these positive effects, supervision by the separated body is better in quality and more transparent in these cases, which is in the key interest of the shareholders. As mentioned above, here the separation of the supervision and management bodies may produce certain advantages.

[1] Prepared by an expert team at the Ministry of the Economy.
[2] The case of the British legislation.
[3] The case of the German legislation.
[4]The latter should, of course, be understood as just an example of understanding the general view of society regarding the distribution of powers in the social environments concerned.
[6] This is proven by the many national and transnational codes of corporate governance that have been adopted.

Izin Usaha Tetap

Berdasarkan ketentuan petunjuk teknis penanaman modal asing SK No. 57/SK/2004 Perusahan penanaman modal wajib memiliki Izin Usaha Tetap untuk dapat memulai pelaksanaan kegiatan operasi. Pada awalnya setiap investor asing yang berniat untuk mendirikan perusahaan di Indonesia harus mengajukan permohonan persetujuan pendiriam perusahaan penanaman modal asing (PMA) kepada BKPM. Sehubungan dengan permohonan ini BKPM akan mengeluarkan surat persetujuan penanaman modal kepada investor yang merupakan persetujuan sementara sebelum perusahaan tersebut beroperasi secara permanen di Indonesia. BKPM biasanya memberikan waktu satu sampai dua tahun untuk menyelesaikan project awalnya sebagai persiapan untuk beroperasi tetap di Indonesia. Apabila tidak ada kegiatan yang nyata baik secara fisik maupun administratif selama 3 tahun maka surat persetujuan tersebut dapat dianggap sebagai batal demi hukum.
Apabila perusahaan penanaman modal asing telah siap untuk melakukan operasioanl tetap di Indonesia maka mereka wajib untuk mengajukan IUT. Beberapa persyaratan dokumen yang diperlukan untuk mengurus IUT adalah :
  1. Rekaman akta pendirian & perubahan serta pengesahan/persetujuan/tanda penerimaan laporan dari Departemen Hukum dan HAM.
  2. Bukti penguasaan/penggunaan tanah atas nama perusahaan :
    -rekaman sertifikat Hak Atas Tanah (HGB atau HGU atau Hak Pakai) atau akta jual beli tanah oleh PPAT, atau
    - rekaman perjanjian sewa-menyewa tanah.
  3. Bukti penguasaan/penggunaan gedung/bangunan :
    a. rekaman Izin Mendirikan Bangunan (IMB), atau
    b. rekaman akta jual beli/perjanjian sewa-menyewa gedung/bangunan, atau
    c. bukti sah lainnya.
  4. Rekaman NPWP.
  5. Rekaman izin Undang-Undang Gangguan (UUG)/HO bagi bidang usaha selain perdagangan dan jasa konsultansi, kecuali yang diwajibkan AMDAL. Rekaman Surat Izin Tempat Usaha (SITU) bagi jasa perdagangan dan jasa konsultansi.
  6. Rekaman persetujuan Rencana Pengelolaan Lingkungan (RKL) dan Rencana Pemantauan Lingkungan (RPL) bagi perusahaan yang kegiatan usahanya wajib Analisis Mengenai Dampak Lingkungan (AMDAL) atau Dokumen Upaya Pengelolaan Lingkungan (UKL) dan Upaya Pemantauan Lingkungan (UPL) atau Surat Pernyataan Pengelolaan Lingkungan (SPPL) bagi perusahaan yang kegiatan usahanya tidak wajib AMDAL.
  7. Rekaman Surat Persetujuan PMA/PMDN yang dimiliki.
  8. Rekaman Izin Usaha Tetap (IUT) yang dimiliki (untuk permohonan IUT perluasan/ Merger/ Alih Status).
  9. Surat Kuasa bermaterai cukup, bila penandatangan dan/atau yang mengurus permohonan tidak dilakukan oleh pemohon sendiri.
  10. Rekaman LKPM-L1 semester akhir.
  11. Persyaratan lain sebagaimana tercantum di dalam Surat Persetujuan dan/atau Daftar Bidang Usaha yang Terbuka Dengan Persyaratan (Peraturan Presiden Nomor 111 Tahun 2007 atau perubahannya).

Surat IUT akan diterbitkan oleh BKPM selambat-lambatnya 7 (tujuh) hari kerja sejak diterimanya permohonan lengkap dan benar. Surat IUT tersebut akan berlaku selama 30 tahun sejak produksi dimulai bagi PMA.

Izin Usaha Tetap/Permanent Establishment

Any investment company should have permanent establishment license (IUT) to started their operation activity in Indonesia. Usually the investment company willing to invest in Indonesia will apply for the approval of BKPM. The first approval given is a tentative approval for the respective company to start their business in Indonesia. The approval letter will null and void if within 3 (three) years for the new project and 2 (two) years for the expand project since the date of approval is issued have no realisation project either in the form of actual activity or administrative or any physical activities.

if the company have ready to start permanent establishment than the company will apply for IUT. To apply for IUT, some required documents are needed namely:
  1. Deed of Establishment legalized by Minister of Law and Human Rights and its amendment
  2. Copy of Right over the land or land lease agreement
  3. Copy of Building License or Building Lease Agreement
  4. Copy of Hinder Ordonantie (HO) or License of Disturbance Law
  5. Copy of Environmental Anal sis (AMDAL) (if required)
  6. Copy of Foreign Capital Investment Approval and its amendments
  7. Power of Attorney
  8. Specific license or proof for specific business line

The application for IUT submitted to BKPM with 2 (two) copies. The IUT will be issued by BKPM at the latest 7 (seven) days after the complete application submitted. The IUT will valid until 30 years since the production is started

Manpower Law No. 13 Year 2003

ACT OF THE REPUBLIC OF INDONESIA
NUMBER 13 YEAR 2003
CONCERNING
MANPOWER
WITH THE GRACE OF GOD THE ALMIGHTY,
THE PRESIDENT OF THE REPUBLIC OF
INDONESIA,
Considering:
a. That Indonesia’s national development shall be implemented within the framework of building Indonesians as fully-integrated human beings and of building the whole Indonesian society in order to realize
a society in which there shall be welfare, justice and prosperity based on equity both materially and spiritually with the Pancasila and the 1945 Constitution at its foundation.

b. That in the implementation of national development, workers have a very important role and position as actors of development as well as the goal of development itself;

c. That in accordance with the role and position of workers, manpower development is required to enhance the quality of workers as well as their role and participation in national development and in improving protection for workers and their families in respect to human dignity and values;

d. That protection of workers is intended to safeguard the fundamental rights of workers and to secure the implementation of equal opportunity and equal treatment without discrimination on whatever basis in order to realize the welfare of workers/ labourers and their family by continuing to observe the development of progress made by the world of business;

e. That several acts on manpower are considered no longer relevant to the need and demand of manpower development and hence, need to be abolished and/or revoked;

f. That based on the considerations as mentioned under points a, b, c, d and e, it is necessary to establish an Act concerning Manpower.

In view of:
Article 5 Subsection (1), Article 20 Subsection (2), Article 27 Subsection (2), Article 28 and Article 33 Subsection (1) of the 1945 Constitution.
By the joint approval between
THE HOUSE OF REPRESENTATIVES OF
THE REPUBLIC OF INDONESIA
AND
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
DECIDE:
To stipulate:

ACT CONCERNING MANPOWER AFFAIRS
CHAPTER I
GENERAL PROVISIONS
ARTICLE 1
Under this act, the following definitions shall apply:
1. Manpower affairs are referring to every matter that is related to people who are needed or available for a job before, during and after their employment.
2. Manpower is every individual or person who is able to work in order to produce goods and/ or services either to fulfill his or her own needs or to fulfill the needs of the society.

3. A worker/labourer are any person who works and receives wages or other forms of remuneration.

4. An employer is individual, entrepreneur, legal entities, or other entity that employ manpower by paying them wages or other forms of remuneration.
5. An entrepreneur is:
a. An individual, a partnership or a legal entity that operates a self-owned enterprise;
b. An individual, a partnership or a legal entity that independently operates a non-self-owned enterprise;
c. An individual, a partnership or a legal entity located in Indonesia and representing an enterprise as mentioned under point a and point b that is domiciled outside the territory of Indonesia.

6. An enterprise is:
a. Every form of business, which is either a legal entity or not, which is owned by an individual, a partnership or a legal entity that is either privately owned or state owned, which employs workers/ labourers by paying them wages or other forms of remuneration;

b. Social undertakings and other undertakings with officials in charge and which employ people by paying the wages or other forms of remuneration.

7. Manpower planning is the process of making a manpower plan systematically that is used as a basis and reference for formulating the policy, strategy and implementation of a sustainable manpower development program. read more

Investment Law

LAW OF THE REPUBLIC OF INDONESIA NUMBER 25 OF 2007 CONCERNING INVESTMENTS BY THE GRACE OF GOD ALMIGHTY PRESIDEN REPUBLIK INDONESIA, THE PRESIDENT OFTHE REPUBLIC OF INDONESIA

Considering:
a. that to realize a just and prosperous society that is based on Pancasila and the 1945 Constitution
of the State of the Republic of Indonesia, it is necessary to make sustainable national economic development founded on economic democracy in pursuit of the state’s goals;

b. that consistent with the mandate seth forth in Decree of the People’s Consultative Assembly of the Republic of Indonesia Number XVI/MPR/1998 concerning Economic Policy in the context of Economic Democracy, investment policies should at all times underlay the people’s economy that commits itself to the enhancement of micro, small and medium enterprises, and cooperatives;

c. that to accelerate national economic development and to realize Indonesian political and economic sovereignty it is necessary to step up investments in order to turn economic potentials into real economic strength by use of funds derived from both home and abroad;

d. that to deal with global economic changes and Indonesia’s participation in diverse international cooperations it is necessary to create investment climate to be conducive, promoting, giving legal certainty, justice and efficiency with due regard to the interest of national economy Read More

Company Law No. 40 Year 2007

LAW OF THE REPUBLIC OF INDONESIA
NUMBER 40 OF 2007
CONCERNING
LIMITED LIABILITY COMPANIES
BY THE GRACE OF ALMIGHTY GOD
THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Consideration :
a. whereas the national economy, which is operated on a basis of economic democracy with principles of community, efficiency, justice, sustainability, environmental awareness, independence and safeguards for balanced progress and national economic unity, needs to supported by firm economic institutions in the context of creating prosperity for society;


b. whereas in the context of increasing developmentof the national economy and at the same time giving a firm basis for the business world in facing the developments in the world economy and progress in science and technology in the coming era of globalisation, the support is needed of an act regulating limited liability companies which can secure the operation of a conducive climate for the business world;

c. whereas limited liability companies as a pillar of national economic development need to be given a legal basis to spur on national development composed mutual enterprises on the basis of the principle of a family spirit;

d. whereas the Limited Liability Companies Act No. 1 of 1995 is viewed as no longer in accordance with legal developments and the needs of society and so needs to be replaced with a new act;

e. whereas given the above in paragraphs a, b, c, and
d, it is necessary to form a Limited Liability
Companies Act.
Bearing in mind: Article 5 paragraph (1), Article 20, and Article 33 of the 1945 Constitution of the Republic of Indonesia. With the Common Assent of
THE HOUSE OF PEOPLE’S REPRESENTATIVES OF THE REPUBLIC OF
INDONESIA
and
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
HAS RESOLVED
to promulgate:

A LIMITED LIABILITY COMPANIES ACT
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Act, the following terms have the following meanings:
1. “Limited Liability Company” (hereinafter called a “Company”) means a legal entity which constitutes an alliance of capital established pursuant to a contract in order to carry on business activities with an authorised capital all of which is divided into shares and which fulfils the requirements stipulated in this Act and its implementing regulations.

2. “Company Organs” means the General Meeting of Shareholders, the Board of Directors, and Board of Commissioners.

3. “Environmental and Social Responsibility” means a Company’s commitment to taking part in sustainable economic development in order to improve the quality of life and environment, which will be beneficial for the Company itself, the local community and society in general.

4. “General Meeting of Shareholders” (hereinafter called the “GMS”) means the Company Organ which has authority not given to the Board of Directors or Board of Commissioners within limits specified in this Act and/or the articles of association.

5. “Board of Directors” means the Company Organ with full authority and responsibility for the management of the Company in the interests of the Company in accordance with the Company’s purposes and objectives and to represent the Company in and out of court in accordance with the provisions of the articles of association.

6. “Board of Commissioners” means the Company Organ with the task of general and/or specific supervision in accordance with the articles of association and giving advice to the Board of Directors.

7. “Open Company” means a Public Company or a Company which makes an public offering of shares in accordance with the provisions of legislative regulations in the field of capital markets.

8. “Public Company” means a Company which fulfils the criteria of number of shareholders and amount of paid up capital in accordance with the provisions of legislative regulations in the field of capital markets.

9. “Merger” means a legal action taken by one or more Companies to
merge with another existing Company with the result that the assetsand liabilities of the merging Companies pass by operation of law to... Read more
here and here

Night Life in Bangkok

It was a pleasure to visit Bangkok last week. A prestigious opportunity for me gathering within around 50 selected delegations from all around Asia countries discussing about corporate governance in State Owned Enterprises. But, let's skip the serious topic since I've provided a report on this here.

What I want to share here is the night life there. In my opinion, truly this is an opinion since my short time stay did not give me a lot information about whole Bangkok city. However I'm lucky to be in the right spot for the night life in Bangkok. I didn't know whether my colleague in purposely picking the hotel near to this place or it just simply a coincidence. I stayed two night in the hotel at Rama IV Road. Just a few block from Rama IV Road, it is Patpong Road. In this place, every night is party. A very right place for certain people who came to Bangkok for its entertainment.

I believe I will have no much time to buy souvenirs for my wife, family and colleagues. As I saw the map that few block from my hotel, Patpong Road, a place for buying some souvenirs is exist. I walk alone heading Patpong Road, and within only five minutes walked, the patpong Road is already in front of me. Once I arrived in the front of the Road, truly I am shocked with the views around me. I don't know whether they are men or women but absolutely they are dressing as women, well actually half dressed. Yes, this is Patpong Road the place that people said as a center of entertainment, a wild night life. There are some seller offering souvenirs, porno DVDs sellers who're seemingly afraid of selling their goods openly and other merchandise sellers. Even this is a very strange place for me but I tried to confidently walk through. My first intention was to buy souvenirs nothing others. For me it is enough to know that this kind of place available in Bangkok. I do think this place mixed between entertainment and prostitution.

In this place, everything illegal in Jakarta were seemingly so free. Can you imagine that a bar or something like that widely open for just sightseeing. They have a round table for the guests, and you know that in the middle of round table there are lot of women, half naked and dancing happily. Because the door is quite big and it is widely open, I can see all the activities there. A striptease parade are shown freely. Naudzubillah. Even maybe, somewhere in Jakarta, this kind of entertainment is also provided, I believe those kind of entertainment were not openly parade like in Bangkok. I think this is no difference with Red District in Holland.

Just a sharing experience, but this is meaningful for me. I don't think that Bangkok is better than Jakarta. I do even think that Jakarta much better. especially on this side, the night life.

The 4th Network on Corporate Governance of State Owned Enterprises

It was a prestigious opportunity for Forum for Corporate Governance in Indonesia (FCGI) to participate as Indonesian delegations in the international forum of 4th Asian Network on Corporate Governance of State-Owned Enterprises (SOEs) held in Bangkok 20-21 May 2009 (“Network”). The Network is annually held by Organization of Economic and Co-operation Development (OECD). An international organization established to help governments in tackling economic, social and governance of globalised economy.

The Network gathered around 50 participants, including the most prominent, active and influential policy makers, practitioners and experts regarding corporate governance of SOEs in the region. They constitute a peer of group that can press for legal, regulatory or other type of reform in this field. The Network aims to raise awareness, evaluate the currents policies of Corporate Governance, and support viable and effective reform on the importance and challenges related to the implementation of good corporate governance of SOEs in Asia countries.
To keep the dialogue focused and produces a tangible outcome, the Network has progressively developed a Regional Policy Brief, providing a set of recommendations and priorities for policy reform in order to improve the corporate governance of SOEs in the economic of Asia. The Network has also developed complete guidelines on the implementation of good corporate governance in SOEs notably in Asia. The guidelines are the first international benchmark in corporate governance of SOEs area. The use of the guidelines aims to raise awareness and promote implementation of good corporate governance in this sector.

As both policy brief and guidelines on the implementation of good corporate governments has progressively made, this 4th network focused on the implementation issues, discussing examples of international best practices, and how to implement the recommendations as provided by the policy brief and guidelines. It was also discussed about monitoring mechanism to follow-up implementation of the Policy Brief in the years to come in Asian countries.

During the Network session over the relevancy of the guideline on corporate governance of SOEs in Asia, all delegation has basically agreed with the guidelines and it has been widely accepted by Asian countries. Even some comments arisen, but generally speaking, the problem of guidelines contents are solely technical problem since the countries has different background, culture and system. Even the content of the guidelines has been accepted, In fact, some Asian countries found difficulties to straightly implement the guideline.

From the discussion within the session, the participants identified some common challenges faced in the implementation of corporate governance in SOEs. The major challenge is the state position as an owner of SOEs, somehow, considerably to much involve in the day-to-day management of SOEs. An excessive right of state as an owner causing some serious problem on the focus of corporate governance implementation in SOEs. This causing some dependency in decision making, bureaucracy problem, and lead to the less professional and undefined objectives.

The problem of director selection and nomination process also emerged. Some countries has problem with mechanism and process of getting the right people for this top job. Political interest in certain countries becoming an immense cause for this. Some government still inevitably appoints the SOE directors on their political future prospect as SOEs are a huge hope for political funding within the political process. In certain countries it worsened with the active participation of parliament in deciding the directors of SOEs either formally through the nomination and selection in the parliament so called fit and proper test or politically influence (intimidate-red) the government to choose on political interest-based, in this regard the president or related ministry who has the final right decision to appoint the directors. Other than state ownership and nomination of board directors, the challenges of ensuring implementation of corporate governance guidelines are regulatory reform, equal treatment to all shareholders, stakeholder interest as well as transparency and disclosure.

Some developments in some countries are also shared within the network session. Some countries like Thailand, Taiwan, Philippine, China, Indonesia and Bhutan shared their impressive development in this field i.e. Thailand has successfully develop principle guideline for their country to implement corporate governance in SOEs. Their focus on corporate governance in SOEs managed by State Enterprises Policy Office, structurally established under Minister of Finance. In the future they will make separation between policy, regulatory and operational responsibilities.

Philippine has developed a score card as an evaluation for SOEs performance on corporate governance implementation. They have also established some kind of independent steering committee in the selection and nomination of SOEs’ director. Even the final decision will be prerogatively made by the president but the steering committee will play an important role to select the right man for the right job. This is will also minimize the collusion or nepotism practice within the nomination process. Some countries has successfully setting up centralize ownership entities i.e. the SASAC in china, SCIC in Vietnam and most recently the Druk Holdings in Bhutan. Indonesia is now on the way to develop this ambitious plan to centralized SOEs ownership by establishing SOEs holding company.

Indonesia has progressively adopted the guideline through regulatory reform until ministerial level. Indonesia has also developed regulations which strictly oblige SOEs to compliance with corporate governance. This aims to provide good system and best practices as well as internalized the penetration of good corporate governance culture in SOEs. In providing the guideline for corporate governance implementation Indonesia has made guideline on sectoral based such as good corporate governance for bank, insurance company and other corporation which also applied for SOEs.

Further, after all challenges and development have been shared and some intriguing discussion has been made within the network delegations, it can be concluded that some priorities should be managed to ensure the implementation issues running well. The priorities are in the areas of regulatory reform, ownership by the state, equitable treatment for all shareholders, transparency and disclosure, selection and nomination process for the board as well the responsibility of the boars. Last but not the least, a monitoring mechanism should be developed to ensure that the priorities well implemented

Establishment of Representative Office under Department of Trade

Establishment of representative office enganges in trading activities can be applied in Department of Trade. The foreign trading representative office can be enganges as selling agent, manufactures agent as well as buying agent.

The foreign trading representative office acting as trading agent and/or manufactur agent is allowed to carry out activities as follow:

  • to introduce and develop marketing of th goods produced by the father company abroad and to provide information or guidelines for using or importing the goods to the user in Indonesia
  • to conduct market research and selling supervisory in Indonesia on behalf of its parent company

The trading representative office and/or manufactur agent is not allowed to conduct any trading and trade transaction, either in the initial level until completion level e.g apply for tender, signing contract, claim settlement etc.

The foreign trading representative office acting as buying agent is allowed to carry out following activities :

  • to conduct market reseacrh over the goods needed by parent company and to connect an provides informationas well as guidelines on hiw to export to the national company.
  • to close the contract to and on behalf of the parent company in the frame of export.

Requirements to set up this kind of representative office are as follow:

  • Letter of appointment made by parent company includes the name of chief of representative office, line business, time frame or validity of its appoinment letter.
  • Statement Letter that the chief representative will not conducted any other activities other than related to the representative office activities.
  • Letter which describing about the parent company includes the name of the company, date of establishment, legal entity form, address and line business
  • Working plan
  • Letter of Intent
  • Letter of Reference
  • Letter Model TA00 from Department of Manpower
  • Curriculum Vitae
  • Copy of Passport for the proposed Chief of Representative
  • To pay deposite as chief of representative in the amount of IDR 5000.000,- for foreigner and IDR 1000.000,- for Indonesian.

The proces to obtain approval from the Ministry of Trade will take approximately one month. Once the approval from BKPM is obtained, some supporting legal document should also arranged. Other supporting legal documents are company registry (TDP) Legal domicile (SKDP) and tax identity number (NPWP). The whole process is estimately accomplished within 2-3 months.



Establishment of Representative Office under BKPM in Indonesia

Many foreign investor at the early stages of investing their capital in Indonesia choose to open their representative in Indonesia. After the business starts they will aplly for foreign direct investment. The establishment of representative office is relatively easier as no need capital requirement nor complex procedure. Establishment of representative can be done dependin on the licenses type and business line needed. The type and business line for representative office in indonesia has been explained on my previuos post here.
Establishment of representative office for the company which has line business other than trade, banking as well as construction is through Indonesian Investment Coordination Board (BKPM). The establishment of representative office under BKPM is governed under its chairmand decree no. 57/2004.
Required documents for the establishment of representative office are as follow:
  • Letter of Appointment from the parent company;
  • Power of Attorney (if the application represented by proxy);
  • Article of Association of the parent company and any amendment (s);
  • Copy of valid passport (for foreigner) or copy of identification number (for Indonesia) who will be proposed as a chief of representative office; and
  • Letter of Statement concerning the willingness to stay, and only work in the position as the chief of representative office without doing other business in Indonesia.

The approval will takes maximum ithin ten days after all the complete required documents is submitted. Once the approval from BKPM is obtained, some supporting legal document should also arranged. Other supporting legal documents are company registry (TDP) Legal domicile (SKDP) and tax identity number (NPWP). The whole process is estimately accopmplish within 2-3 months.

It is essential to know that representative office activities are limited to as supervisor, connector, coordinator and to arrange company’s interest or affiliated companies in Indonesia and or state outside Indonesia. No commercial transaction is allowed for representative office. specifically, representative office is pohibited to carry out activities as follow :

  • Representative office is not allowed to seek revenue from the source in Indonesia including not allowed to carry out activities or to conduct a sale agreement/transaction and to purchase goods and services with company or individual in broad.
  • Representative office will not participate in any form of company’s management, subsidiary or company’s branch in Indonesia
  • Representative office management should domicile in Indonesia
  • Representative office management should fully responsible of all office activities
  • Representative office management is able to employ expatriate worker which has certain skill
  • Representative office management is not allowed to carry out any activities other than office’s activities
  • Representative office management obliges to carry out all prevailing government’s regulations
  • Representative office management should submit annual report, not later than 31 January in the next year to the Chairman of Investment Coordination Board using KPPA’s form report

Republik Ironi


Anda mungkin pernah mendengar suatu negara bernama Republik Mimpi, negara tetangga Indonesia. Sebuah negara hasil kreasi insan media televisi swasta nasional yang digadangi oleh salah satu dosen ilmu komunikasi di Universitas Indonesia. Di Negeri ini segala harapan dan cita-cita Indonesia digantungkan. Segalanya di impikan seindah dan sesempurna mungkin. Namanya juga impian, sangat jauh panggang dari api.

Kalau mereka asyik bermimpi tentang indahnya ber-Indonesia, namun hari ini saya, mungkin juga untuk beberapa hari yang berkelanjutan, merasakan betapa Indonesia pada saat ini tak lebih dari sekedar Republik Ironi. Penegakan hukum di Indonesia mewakili begitu besar ironisme berkelanjutan di Republik ini. Saya begitu terhenyak bahkan kaget setengah percaya ketika Kepolisian RI sedikit demi sedikit mulai mengungkap dalang pembunuhan Direktur PT. PRB. Dugaan terlibatnya beberapa nama yang berasal dari kalangan yang begitu dikenal oleh publik semakin menambah ironisme penegakan hukum di negeri ini. Indonesia sudah bak film-film holywood. Begitu banyak intrik, trik dan konspirasi. Nyawa sepertinya sudah tak begitu banyak berarti. Pembunuh bayaran berkeliaran. Bukan sekedar penjahat kelas teri atau kelas ece-ece tapi sudah profesional dan expert menggunakan senjata Api.
Dugaan terlibatnya seseorang berinisial AA yang menjadi pimpinan lembaga super body dalam peperangan melawan korupsi adalah bukti ironisme di Republik Ini. Seseorang yang dipuji-puji sebagai Man of the Year karena keberaniannya dalam pemberantasan korupsi, diduga terlibat dalam kasus pembunuhan yang cukup kejam. Ditambah lagi, pembunuhan ini disinyalir bermotifkan cinta segitiga, ah benar-benar ironis. Seseorang sekelas AA harus terpeleset hanya karena cinta segitiga dengan seorang Caddy Golf.

AA memang ditakdirkan menjadi manusia kontroversial. Pria kelahiran Pangkal Pinang Tahun 1953 ini, sejak awal pencalonannya menjadi ketua KPK telah mengundang berbagai kontroversi. Track recordnya sebagai seorang jaksa banyak yang mempertanyakan. Ketidakberaniannya mengeksekusi Anggota DPRD Sumatera Barat yang telah divonis bersalah dalam korupsi berjamaah, serta keterlambatannya dalam mengeksekusi Tommy Soeharto yang berakibat Tomy Soeharto melarikan diri adalah beberaapa hal yang membuat masyarakat ragu AA dapat memimpin lembaga sekelas KPK.

Pro kontra dan kontroversi nyatanya tidak menggoyahkan Komisi III DPR RI untuk mendapuknya sebagai pimpinan KPK. Keraguan publik pun di jawabnya dengan menangkap beberapa pejabat publik karena dugaan korupsi. Al Amin Nur Nasution, Aulia Pohan, rekan satu Korpsnya Urip Tri Gunawan merupakan pihak-pihak yang menjadi korban kesungguhan AA dalam memberantas Korupsi. Namun sekali lagi Ironis memang, namanya disebut-sebut sebagai salah satu aktor intelektual (intelectual dader) dalam pembunuhan direktur PT. PRB Nasrudin.

Menarik apa yang dikatakan oleh Hidayat Nurwahid pada saat diwawancarai oleh wartawan tentang tanggapannya mengenai kasus ini. "Tentu saja praduga tak bersalah harus diutamakan dalam penegakan hukum dan semestinya penegakan hukum harus dilatarbelakangi oleh keinginan untuk mencapai keadilan dan bukan karena motif politik, balas dendam pribadi dan atau golongan, persaingan antar korps dan mendulang popularitas". Mungkinkah ini akar dari semuanya. Ketidakikhlasan menjadikan segala sesuatu menjadi kurang berkah. Ketidakikhlasan berarti bekerja bukan untuk mengharapkan ridho Tuhan. Coba kita perhatikan betapa Kejaksaaan melalui Kapuspenkumnnya begitu bernafsu untuk melakukan pencekalan terhadap AA, mengumumkan AA adalah tersangka padahal status panggilan pemeriksaan AA adalah sebagai saksi dan Kejaksaan sama sekali tidak berhak mengumumkan seseorang menjadi tersangka. Ah balas dendamkah ini.

Kalaulah ironisme penegakan hukum ini berkelanjutan, lalu kepada siapa kita-kita ini, rakyat kecil kaum proletar harus meminta keadilan. Kalaulah sang penegak hukum dan kriminal adalah dwi tunggal lalu apakah Dewi keadilan telah benar-benar buta dan sama sekali tidak bisa melihat dimana keadilan. Wallahu A'lam.

Evaluasi Pemilu Untuk PKS

Pemilu 9 April 2009 mungkin akan menjadi kenangan yang kurang mengenakkan bagi Partai Keadilan Sejahtera. Target perolehan suara yang membumbung tinggi hingga mencapai 20% hanya menjadi isapan jempol semata. Melalui perhitungan cepat, perolehan suara PKS bahkan tidak sampai setengahnya. Meski bertahan pada posisi 7-8%, hampir sama dengan perolehan suara pemilu 2004, perolehan suara kali ini sungguh sangat mengecewakan. DPP sangat percaya diri suara PKS bisa menembus 2 digit hingga angka 13%, namun hal ini dianggap sangat tidak realistis. Kedigdayaan Partai Demokrat yang melibas perolehan suara partai-partai besar lainnya harus dengan tangan terbuka diakui juga oleh PKS.
Partai Keadilah Sejahtera adalah sebuah Partai yang lahir dari rahim Jamaah Tarbiyah. Sebuah jamaah eksklusif yang menjadikan Ikhwanul Muslimin dibawah pimpinan Hasan Al Banna sebagai panutan dan Uswah. Partai Keadilan Sejahtera mengklaim sebagai sebuah partai dakwah. Partai dalam hal ini adalah ijtihad politik untuk memudahkan jalan dakwah. Keberadaan PKS adalah suatu fenomena, setidaknya ini diakui oleh pengamat politik Indonesia, Kevin Evans. PKS dianggap sebagai salah satu Partai Islam yang paling bersinar. Dari hanya memperoleh kurang dari 2% pada awal kemunculannya ditahun 1999 merangsek hingga mencapai 7,5%.

Melejitnya suara PKS hingga lebih dari 300 kali lipat menambah optimisme dan euforia para ponggawa partai ini untuk mentargekan 20% suara pada pemilu 2009. Dengan 20% suara, PKS akan mencalonkan presiden dari partainya sendiri. Jelas, strategi yang dilakukan adalah menjangkau masa mengambang diluar kadernya. Untuk hal itu, PKS yang awalnya tertutup merubah platform kampanye politiknya untuk menjadi lebih terbuka, menerima semua golongan dan bersedia membuka komunikasi politik dengan partai apapun dan golongan manapun. Miliaran rupiah uang kader digelontorkan untuk kampanye keterbukaan ini. PKS mulai menampilkan parade iklan yang lebih terbuka dan menggelitik bahkan terkadang kontroversial. Perubahan platform kampanye ini dipimpin langsung oleh sang Sekjen, Ust Anis Matta.

Pertanyaannya adalah” Apakah usaha ini berhasil?” Jika perhitungannya adalah penyampaian informasi, mungkin masyarakat mulai menyadari bahwa PKS tidak seekslusif itu. PKS bukanlah hanya diisi orang-orang berjenggot yang tidak bersalaman dengan wanita atau wanitanya yang berjubah rapat bak Ninja. Namun dalam alam demokrasi, informasi terkadang menjadi kurang penting jika efeknya tidak membuat pemilih terpengaruh untuk memilih partai tersebut. “Democracy is majority rule”. PKS gagal menambah perolehan suaranya. Alibi lain yang digunakan sang Sekjen untuk menutupi kegagalan ini adalah, DPT yang semrawut. Banyak pemilih PKS yang tidak terdaftar. Kalau ini alasannya, sandi mawon dengan partai lain. PKS tidak kuat menghadapi gempuran Partai Demokrat yang digawangi oleh incumbent, Presiden Susilo Bambang Yudhoyono.

Kurang berpengaruhnya suara PKS, jika tidak ingin mengatakan sebuah kegagalan, pada pemilu kali ini banyak mengundang suara-suara miring dikalangan para kader. Keberanian PKS untuk mengubah platformnya dalam berkampanye menuai protes cukup keras. PKS dianggap telah keluar dari platform politiknya. PKS bahkan dianggap telah keluar dari khittahnya sebagai partai dakwah. Animo untuk menaikkan rating elektabilitas melunturkan dan melenturkan tujuan semula, berdakwah. Isu yang berkembang PKS terpecah menjadi Faksi keadilan dan Faksi Kesejahteraan. Satu faksi menghendaki PKS bertahan seperti semula, kembali ke khittahnya sebagai partai dakwah eksklusif. Pihak lain menghendaki PKS lebih terbuka dan bersedia membuka komunikasi politik dengan partai manapun.

Ujicoba untuk menjadi terbuka nampaknya tidak berhasil. Ijtihad ini hanya berhasil mempertahankan suara para kader plus sedikit tambahan suara para simpatisan. Ijtihad ini pun membuat PKS tidak lagi menjadi unik. Sebagai suatu partai yang paling bersinar diantara partai Islam lainnya, PKS seharusnya mempertahankan keunikannya sebagai Partai Kader dan Partai Dakwah. Prosesnya mungkin akan menjadi lebih lama, karena ini adalah kompetisi demokrasi. Kompetisi dimana suara rakyat disamakan dengan suara Tuhan (Naudzubillah). Keunikan PKS yang khas dan berani berbeda adalah tampilan yang cukup menarik dalam kontes demokrasi. Setidak-tidaknya ini membedakan PKS dengan partai Islam lainnya. Keterbukaan yang dilontarkan seharusnya lebih focus pada penerimaan partai terhadap golongan lain bukan pada perubahan tampilan. Keterbukaan partai untuk menerima yang merah, jingga, kuning, hijau, biru, nila dan ungu seharusnya jangan sekali-kali dilakukan dengan merubah platform. Jelas sekali PKS menampilkan iklan-iklan wanita yang tidak berjilbab atau iklan-iklan yang justru sama sekali menghilangkan jati diri PKS. Luntur, lentur dan pragmatis.

Setidaknya ada hikmah besar pasca kegagalan ini. PKS harus berbenah diri. Pengalaman Partai politik Islam di Indonesia bak bunga yang layu sebelum benar-benar mekar. Akankah PKS seperti itu, wallahu A’lam bishawab. Namun begitulah dakwah, bagaimanapun caranya akan menemui bentuk dan jalannya sendiri. PKS boleh saja mengklaim sebagai Partai Dakwah tetapi Dakwah sama sekali bukan PKS.

Tata Cara Pendirian CV (Commanditaire Vennootschap)

Click here for english version.
CV atau Commandiatire Vennootschap atau biasa disebut sebagai Persekutuan Komanditaer diatur dalam Kitab Undang-undang Hukum Dagang pasal 119. KUHD menyatakan bahwa CV adalah kemitraan yang terdiri dari mitra pasif dan mitra aktif. CV dapat didefinisikan sebagai suatu perusahaan yang didirikan oleh satu atau beberapa orang secara tanggung-menanggung bertanggung jawab untuk seluruhnya atau bertanggung jawab secaraa solider, dengan satu orang atau lebih sebagai pelepas uang (geldshieter).
Pendirian
Proses pendirian CV relatif lebih mudah dibandingkan bentuk usaha lain semisal Perseroan Terbatas. Pendirian CV dapat dilakukan secara tertulis atau secara lisan, baik dengan akta otentik ataupun dibawah tangan. Namun untuk kekuatan hukum serta kepastian hukum untuk pihak ketiga sebaiknya pendirian CV dilakukan secara tertulis dengan Akta Otentik yang dibuat oleh Notaris. Meskipun tidak ada kewajiban untuk melakukan pengumuman didalam berita Negara Republik Indonesia, CV dapat didaftakan di Pengadilan Negeri Setempat. Untuk memperkuat legalitas CV, biasanya ada beberapa legalitas lainnya yang diperlukan yaitu mempunyai Surat Keterangan Domisili Perusahaan (SKDP), Nomor Pokok Wajib Pajak (NPWP) Surat Izin Usaha Perdagangan (SIUP) dan Surat Keanggotaan Kadin. Legalitas ini seringkali menjadi prasyarat apabila CV ingin ikut serta dalam tender-tender tertentu baik yang diselenggarakan oleh instansi pemerintah maupun swasta.
Status Hukum
Menurut ketentuan Perundag-undangan Indonesia, CV bukanlah suatu badan Hukum. Meskipun begitu kekayaan/aset yang dimiliki oleh CV terpisah dengan kekayaan/aset yang dimiliki oleh para mitranya baik mitra pasif atau mitra aktif.
Perbedaan PT dengan CV
Apabila ada keinginan untuk mendirikan CV sebagai suatu badan usaha, ada baiknya memperhatikan perbedaan CV dengan PT.
  1. Pengurus CV bertanggung jawab penuh, sedankan Pengurus PT bertanggun jawab terbatas pada sahamnya;
  2. Bila anggota CV meninggal dunia maka CV bubar, hal ini tidak berlaku pada PT meskipun terjadi pergantian kepengurusan;
  3. Pengurus CV bertindak selama perseroan berjalan sedangkan pada PT tidak berjalan seperti itu;
  4. CV terbagi atas saham yang mempunyai komisaris namun tetap komanditaer, sedangkan dalam PT selalu ada komisaris
  5. Pada CV ada sekutu pasif dan aktif sedangkan dalam PT tidak dikenal istilah demikian. Pemegang saham bertanggung jawab sebatas kepemilikan modalnya yang tertuang dalam saham-saham.

Examples of Deed (Contoh Akta-akta Pendirian)

Having seen the practical condition of the establishment of legal entity or form of organization in Indonesia, I thought it is essential to provide copy of the standard of deed of establishment used by Public Notary for various legal entity like PT, CV, Association etc. The Deeds are in Bahasa Indonesia while for English translation will be further posted.

For the Deed of Local PT please click here
For the Deed of Foreign Investment company or PT PMA click here
For the Deed of CV please click here

For the Deed of Association please click here
However, the standard of these deeds can be amended depending on the need of the founder. The laws and regulations should be taken into account once the founder wants to change these standard draft.

Can Foreigner Own Apartment in Indonesia

In late 90s, Indonesia Laws regarding land has been amended. New laws are now permitted the foreigners to purchase apartments in Indonesia if the building has a strata title status. oreover, the foreigners can not hold the strata title of ownership of the apartment. The foreigners only can hold the right of use of the apartment.

Government Regulation 41 of 1996 regarding Ownership of Residences by Foreign Persons Domiciled in Indonesia (“Law 41/96”) clearly stipulate that the foreigner can hold the right of use of apartment with certain conditions e.g. the said foreigner is given benefit to Indonesia. Moreover, the right of use is only given for 25 years and can be extended for other 25 years.

There are two (2) ways for foreigners to have property in Indonesia. The following scenarios are e.g.:

First, CONVERTIBLE LEASE AGREEEMENT: There is a way for foreigners to purchase property in Indonesia by signing the convertible lease agreement with the developer company. This agreement entails that the foreigner may purchase apartment, but the title is still held in the name of the developer. This lease agreement is for a definite period.The transfer provision: This Convertible Lease Agreement states that the Lessee will obtain the right of ownership of the apartment automatically when the law and regulations regarding the land and apartment change. Then both lessee and lessor will enter into Sale and Purchase agreement. And the title of ownership shall be transferred to the lessee.The current practice in Indonesia that the developer company usually uses the standard contract in selling strata title to the customers. The standard contract is one sided contract. The content of the contract are made by the developer not the by both parties. It is can be called ‘take it or leave it contract’. There is no freedom of contract.Promissory Note: Besides, the convertible lease agreement, the lessee shall enter separate agreement with developer (“Promissory Note”). The said Promissory Note states that the lessee may re-sell the apartment to other parties chosen by him/her. Moreover, it shall be stated also that if the developer transfer its rights and obligation to third party under the lease agreement, the said promissory note shall be valid and forced to the third party.

Second, NOMINEE ARRANGEMENT: The foreigners may have an Indonesian person that they can trust so that the property under the Indonesian name.Then, the foreigner and Indonesian person will enter into an agreement that this Indonesian person has debt to the foreigner and pledge the said apartment.

-Mary Osmond-

Can Foreigner Establish a Foundation in Indonesia

Individual foreigner or foeigner along with local indonesian and/or foreign legal entity can establish a foundation under Indonesian Law. This is regulated under law number 16/2001 as amended by law number 28/2004. it's also governed in the government regulation number 63/2008.
Requirement needed for the establishment of foundation by foreigner are as follow:
  • The foreig founders should separated their wealthy at least in the amount of IDR 100.000.000,- as an initial foundation's wealthy
  • Stating that said wealthy comes from legal wealthy
  • Stating that the activities of the foundation will not hampering society and the state of the Republic of Indonesia
  • one of the Executive Board should be hold by Indonesian
  • The Executive member must have a legal domicile in Indonesia
  • The foreign Executive member should hold any of permit of conducting activities in Indonesia and hold Limited Stay Permit.
  • The member of advisory board and supervisory board, if they have legal domicile in Indonesia, must hold a permit or license to carry out activities or business in Indonesia and hold Limited Stay permit.

The process of the establishment is as the same as the establishment for local people. Please see here for further detail.

Establishment of Foundation in Indonesia

Definition
Foundation or "stichting" is defined by law number 16/2001 as a legal entity which comprises of separated wealthy and is established to reach certain goals in the field of social, humanity and religious. From the mentioned definition can be concluded that foundation can not generate profits. The goals of the Foundation establishment are limited to social, humanity and profit.
Legal Basis
Foundation is governed under the law number 16/2001 as amended by law number 28/2004. There also an implementation regulation for Foundation under Government Regulation Number 63 year 2008.
Initial Foundation's Wealthy
The foundation's wealthy established by local individual is in the amount of IDR 10.000.000,- and for foreign individual and/or along with local individual in the amount of IDR 100.000.000,-Fundation that established by local and or foreign legal entity should owned an initial wealthy at least in the amount of IDR 100.000.000,-. The wealthy should be separated from the private founder wealthy.
Establishment Process
Foundation can be established by one person or more either Indonesian or foreigners. The process of establishment of foundation is carried out by making a deed of establishment made in Bahasa Indonesia before the public Notary. The process of establishment can be also made by proxy.
After the deed of establishment is made then the founder or its proxy apply for a legalization to the Ministry of Law and Human Rights through the Notary. Required document needed for the legalization process are as follow.
  • Copy of the Deed of Establishment
  • Copy of Tax Identity Number legalized by the Notary
  • Statement Letter regarding Domicile Letter of Foundation signed by the Board of Foundation and known by local Head of Sub district (Lurah/Kepala desa)
  • Receipt from the bank or statement Letter from the Bank or statement Letter from the Founders stating the value of the Foundation's property separated from the initial property to establish the foundation
  • Statement Letter from founder stating the validity of the property mentioned
  • receipt of the paid cost for the legalization and announcement of foundation

The application should be submitted not later than 1o days after the deed of establishment is signed. The legalization will be obtained not later than 30 days after the submission of the application with complete document. The foundation will automatically obtain its legal status once the legalization is approved.

Organ

Foundation has three organ comprises of Board of Advisor, Board of Executive and Board of Supervisor.

Audit Committee

A. Concept and Audit Committee Definition

One of the aforementioned committees, the audit committee, has separate tasks in term of supervising and assisting the BoC in fulfilling its oversight responsibilities. For instance, the Audit Committee has the power to conduct or authorize investigation into matters within the committee's scope of responsibilities. The Institute of Internal Auditors (IIA) recommends that every public company have an audit committee organized as a standing committee . The Institute also encourages the establishment of audit committees in other organizations including not for profit and governmental bodies. The audit committee should consist solely of outside commissioners, independent of management. The primary responsibilities of the audit committee should be assisting the BoC in carrying out their responsibilities as they relate to the organization's accounting policies, internal control and financial reporting practices. (The Institute of Internal Auditors, Internal Auditing and The Audit Committee: Working Together Toward Common Goals)

The existence of Audit Committee in the frame of Good Corporate Governance implementation can be seen from the regulations as follo :
1. Circular Letter of Bapepam Chairman No. Se-03/PM regarding Audit Committee
2. Decree of PT ursa Efek Jakarta Directors Number Kep-305/BEJ/07/-2004 regarding regulation No. I-A regarding stock listing and equity security otherthan stock issued by listed company applied since July 19, 2004.
3. Minister of SOEs Decree Number Kep-133/M-BUMN/1999 regarding formation of Audit Committee for SOEs
4. Professional Public Accountant Standard issued by Indonesian Accountant Association. Audit standard statement determined such requirements for auditor that certain problems in respect to the audit implementation is comunicated to supervisory in charge person in the financial report. The party mentioned herein as information receiver is audit committee.

In addition, Indonesian Audit Committee Association, an independent organization which has the same vision with GCG has issued an audit committee manual in which referred as a practical guideline to all audit committee members to understand its function, task and responsibility.

A. Function and Audit Committee Role

In general, audit committee exercises responsibility in three areas, namely:
a. Financial Reporting.
b. Corporate Governance.
c. Corporate Control.

1. Financial Reporting

The responsibility of the Audit Committee in the area of financial reporting is to provide assurance that financial disclosures made by management reasonably portray the company's:
a. Financial Condition.
b. Results of Operations.
c. Plans and Long Term commitments.

The specific steps involved in carrying out this responsibility include:
1. Recommending the independent accountants.
2. Overseeing the external audit coverage, including:
¨ Auditor engagement letter
¨ Estimated fees
¨ Timing of auditors' visits
¨ Coordination with internal audit
¨ Monitoring audit results
¨ Review of auditors performance.
3. Reviewing accounting policies and policy decisions.
4. Examining the financial statements, including:
¨ Interim financial statements
¨ Annual financial statements
¨ Auditor's opinion and Management Letters.
With respect to the review of accounting policies and policy decisions, a useful approach would be to require from the chief accounting officer a concise summary of all significant accounting policies underlying the financial statements. This summary should be updated as necessary and reviewed by both the independent accounting and the internal auditors.

2. Corporate Governance

The responsibility of the Audit Committee in the area of corporate governance is to provide assurance that the corporation is in reasonable compliance with pertaining laws and regulation, is conducting its affairs ethically, and is maintaining effective controls against employee conflict of interest and fraud.

The specific steps involved in carrying out this responsibility, include:
Reviewing corporate policies relating to compliance with laws and regulations, ethics, conflict of interest and the investigation of misconduct and fraud;
b. Reviewing current/pending litigation or regulatory proceedings bearing on corporate governance in which the corporation is a party;
c. Reviewing significant cases of employee conflict of interest, misconduct and fraud;
d. Requiring the internal auditor to report the scope of reviews of corporate governance and any significant finding.

3. Corporate Control

The responsibility of audit committees for corporate control includes an understanding of the company's key financial reporting, risks areas and system of internal control. The committee should monitor the control process through internal auditing, as the scope of the internal audit should encompass the examination and evaluation of the adequacy and effectiveness of the organization's system of internal control and the quality of performance in carrying out assigned responsibilities.

In addition, the new definition of internal auditing states that internal auditing is an independent objective assurance and consulting activity designed to add value and improve an organization's operations and it helps an organization accomplish its objectives by bringing a systematic, discipline approach to evaluate and improve the effectiveness of risk management, control and governance processes. (The Institute of Internal Auditors, Internal Auditing and The Audit Committee)
B. Membership

Moreover, further criteria and remarks concerning the audit committee are:
1. at least one audit committee member should have sound financial and accounting knowledge
2. chair of the audit committee should be present at Annual General Meeting to answer shareholder queries
3. the audit committee should invite such executives as it considers appropriate (and particularly the head of the finance function) to be present at the meetings of the committee but on occasions it may also meet without the presence of any executives of the company. Finance director and head of internal audit and, when required, a representative of the external auditor should be present as invitees for the meetings of the audit committee
4. the Company Secretary should act as the secretary to the committee
5. powers of the audit committee should include the following:
i. to investigate any activity within its terms of reference
ii. to seek information from any employee
iii. to obtain outside legal or other professional advice
iv. to secure attendance of outsiders with relevant experience, if it considers necessary
(Pratip Kar, 2000)



C. The Audit Committee Charter

The tone of a company's control environment is set at the top, by the board of commissioners in general and the audit committee in particular. The rest of the board often relies on the audit committee to notice and question any unusual business practice, aggressive accounting methods or violations of the company's code of business conduct. But at many companies audit committee members may not have the expertise in matters of internal control, and some people serving on audit committees have very little accounting or financial background at all. Accordingly, audit committee members need a reference guide to their responsibilities. That is the function of an audit committee charter.

A comprehensive charter enhances the effectiveness of the audit committee, serving as a road map for committee members. A well-thought-out charter also should describe the committee's composition and specify access to appropriate resources, for instance, the charter should authorize the audit committee:
a. Funding to retain outside legal counsel without approval from management;
b. Funding to retain an independent accounting firm if a second opinion is called for;
c. Ready access to all books, records and employees of the corporation;
d. Power to conduct any investigation appropriate to fulfilling its responsibility.
In addition, while auditors may find it difficult to detect fraud when management misrepresents the facts, they should take the control environment into account when planning audits - which means auditors should be looking at their clients' audit committee charter in order to set up the financial reporting that will be provided to the shareholders. (James W. Bean, 1999)

The responsibilities of the audit committee should be stated in a formal, written charter or equivalent document that is approved by the full board or governing body of the entity or institution. The charter should articulate the authority, responsibility and structure of the audit committee. The responsibilities, at a minimum, should address financial and other reporting practices, internal control and compliance with laws, regulations and ethics. The charter should also state that the audit committee will meet periodically and may call additional or special meetings as needed, if possible, the authority, responsibilities and structure of the audit committee should be provided in the governing law of the affected entity.

The audit committee charter should also clearly state that:
¨ The primary responsibility for financial and other reporting, internal controls and compliance with laws, regulations and ethics within the entity rests with executive management;
¨ The governing board or chief executive has oversight responsibilities in these areas, and the audit committee assists the governing board or chief executive in fulfilling these responsibilities. The audit committee must have unrestricted access to all information, including documents and personnel, and have adequate resource in order to fulfill its oversight responsibilities;
¨ It is important to have an impartial and objective assessment of the entity's management;
¨ The chief executive and the governing body must support and endorse an audit committee which operates independently of management and is free of organizational impairments;
¨ The audit committee and the internal auditors should maintain a degree of professional independence when assessing management's performance of its responsibilities. However, this does not mean that an adversarial role is necessary or desirable because the internal auditors and management should have common goals;
¨ To ensure the independence of the internal auditing function and that appropriate action is taken on audit findings, the Audit Committee should promote and enhance the mutual cooperation among the committee, internal auditors and executive management.
(The Institute of Internal Auditors, The Audit Committee in the Public Sector)

D. Audit Committee Structure
The Audit Committee should be made up of individuals who are independent of the day to day management of the entity and who have the necessary program and/or management expertise to perform their review function effectively. One of the primary reasons for this independence is to ensure an unbiased perspective on reports and recommendations brought to the committee. Independent individuals would be more apt to be impartial and objective in such matter.

The number of members on the Audit Committee should be determined by the size of the organization. Three to five members, however, is usually ideal. The audit committee will normally find it necessary to meet three to four times annually in order to fulfill its financial reporting responsibilities. (The Institute of Internal Auditors, Internal Auditing and The Audit Committee)

E. Conclusion

Good governance promotes relationship of accountability among the primary corporate organs (the BoC, the BoD, and the Shareholders) to enhance corporate performance. It holds management accountable to the BoC and the BoC accountable to shareholders. In this paradigm, the BoC is in place to ensure that management is working in the best interests of the corporation and its shareholders - by working to enhance corporate economic value. Furthermore, the BoC plays a critical role in directing corporate strategy and ensuring that managers are promoting corporate performance in furtherance of the corporate objectives. Essential to this role is independence of the commissioners meaning that the BoC:
· has the ability to discuss issues outside the presence of management
· is provided with sufficient information to take its decisions, and
· actively participates in agenda-setting and strategy.
This requires individuals with impeccable personal qualities, diverse backgrounds, core competencies and serious understanding of the company and the business.

Furthermore, the BoC in carrying out oversight function should work with the management in a non-confrontational way to achieve corporate legal and ethical compliance. This oversight function is typically delegated by the full board of Commissioners to the audit committee, which such oversight includes ensuring that quality accounting policies, internal controls, and independent and objective outside auditors are in place to deter fraud. Briefly, this oversight function is addressed to anticipate financial risks and to promote accurate, high quality and timely disclosure of financial and other material information to the board, to the public markets, and to shareholders.

In sum, an active, sophisticated, skilled, diverse and -importantly- independent BoC that follows effective board processes is best positioned to ensure that the corporation's assets are being put to their most productive use.