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Political Change and Legal Reform Towards Democracy and Supremacy of Law in Indonesia

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Political Change and Legal Reform Towards Democracy and Supremacy of Law in Indonesia IDE Asian Law Series No. 12 Law and Political Development in Asia (Indonesia) Political Change and Legal Reform towards Democracy and Supremacy of Law in Indonesia Prof. Dr. C.F.G. Sunaryati Hartono, SH Professor of Law Vice Chairperson, National Ombudsman Commission Prof. Dr. phil. Astrid S. Susanto Professor of Political Sociology and Political Communication Member of Parliament (DPR/MPR) RM Surachman, SH APU Research Professor eqv. Deputy Ombudsman National Ombudsman Commission INSTITUTE OF DEVELOPING ECONOMIES (IDE-JETRO) March 2002 JAPAN PREFACE The evolution of the market-oriented economy and the increase in cross-border transactions have brought an urgent need for research and comparisons of judicial systems and the role of law in the development of Asian countries. Last year, in FY 2000, the Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO) conducted legal researches in Asian countries with two main themes. The first theme was to figure out the role of law in social and economic development and the second was to survey the judicial systems and the ongoing reform process thereof. We organized joint research projects with research institutions in Asia and had a roundtable meeting entitled “Law, Development and Socio-Economic Change in Asia” in Manila. The outcomes of the joint researches and the meeting were published in March 2001 as IDE Asian Law Series No. 1-10. This year, in FY 2001, based on the last year’s achievement, we established two research committees: the Committee on “Law and Political Development in Asia” and the Committee on “Dispute Resolution Process in Asia”. The former committee focused on legal and institutional reforms following democratic movements in several Asian countries. Since late 1980s many Asian countries have experienced drastic political changes by the democratic movements with mass action, which have resulted in the reforms of political and administrative system for ensuring the transparency and accountability of the political and administrative process, human rights protection, and the participation of the people to those process. Such reforms are essential to create the stability of the democratic polity while law and legal institutions need to function effectively as designed for democracy. The latter committee conducted a comparative study on availability of the court system and out-of-court systems (namely Alternative Dispute Resolutions), with the purpose of determining underlying problems in the courts. As social and economic conditions drastically change, Asian countries face challenges to establish systems for fairly and effectively resolving the variety of disputes that arise increasingly in our societies. For dispute resolution, litigation in the court is not the only option. Mediation and arbitration proceedings outside the courts are important facilities as well. In order to capture the entire picture of dispute resolution systems, a comprehensive analysis of both the in- and out-of-court dispute resolution processes is essential. In order to facilitate the committees’ activities, IDE organized joint research projects with research institutions in seven Asian countries. This publication, titled IDE Asian Law Series, is the outcome of research conducted by the respective counterparts. This series is composed of papers corresponding to the research themes of the abovementioned committees, i.e. studies on law and political development in Indonesia, the Philippines and Thailand, and studies on the dispute resolution process in China, India, Malaysia, the Philippines, Thailand and Vietnam. The former papers include constitutional issues that relate to the recent democratization process in Asia. Studies conducted by member researchers investigated the role of law under those conditions while taking up such subjects as rule of law, impeachment, Ombudsman activities, human rights commissions, and so on. The latter papers include an overview of dispute resolution mechanisms for comparative study, such as court systems and various ADRs, as well as case studies on the dispute resolution process in consumer, labor and environmental disputes. We believe that this work is unprecedented in its scope, and we hope that this publication will make a contribution as research material and for the further understanding of the legal issues we share. March 2002 Institute of Developing Economies ACKNOWLEDGEMENT This book entitled “Political Change and Legal Reformation towards Democracy and Supremacy of Law in Indonesia” is a report of a study on the political and legal change which occurred in Indonesia in the context of the multi-dimensional Reformation Movement, which caused and followed the downfall of President Soeharto, who governed and lead the Republic of Indonesia for 32 years (from 1966- 1988) Despite the fact that he called his long-term of tenure “The New Order”, which is supported to counter Soekarno’s (our first President) “Old Order”, which he and his followers found very autocratic, Soeharto’s leadership became even more autocratic and tyrannical than the “Old Order”. It was therefore very difficult to find out the exact date of the start of the Reformation Movement, which must have been some time during the first decade of Soeharto’s rule, but became clearer until it exploded during the student’s rally in the Parliament’s (MPR and DPR) Building in Jakarta, in May 1998. In conducting this study I wish to express my gratitude first and foremost to Dr. Naoyaki Sakumoto, who asked me to conduct this study and assured that Institute of Developing Economics of JETRO that in spite of my many activities, I would still be able to complete this study. To be sure, this would not have been possible but for the cooperation of Pr. Dr. phil. Astrid S. Susanto (Professor of Political Sociology and Political Communication at the Faculty of Social Sciences and Politics at the Postgraduate Programme of the Sahid University, University of Indonesia and member of the Parliament (DPR/MPR) also serving as Vice Chairperson of the First Commission (Foreign Relations, Human Rights and Security) and APU Research Professor eqv. RM Surachman, S.H., (Deputy Ombudsman of the National Ombudsman Commission). Prof. Dr. phil. Astrid S. Susanto wrote Chapter III on the 1945 Constitution and its Amendments, and Chapter VI on Decentralization. Whilst Research Professor eqv. RM Surachman responsible for part of Chapter IV and Chapter V (on the Ombudsmanship in Indonesia). Ms. Wuryastuti Sunario furthermore translated the most important laws, to be found in the Annex in the English language, without which it would have been very difficult for a foreigner, not speaking the Indonesian language, to understand the analysis of the laws discusses in this book. Therefore, I am most grateful to Prof. Dr. Astrid S. Susanto, Research Professor eqv. RM Surachman, and Ms. Wuryastuti Sunario for their most valuable contributions to this study and for their time spent in order to have this report finished in time. I will not forget to thank Mrs. Koeswantyo Tami Haryono, S.H. and her team for the most valuable help for assisting me in the administrative and secretarial activities needed in completing this book. After having finished writing this book, the authors feel that much more exact picture of the political and legal changes which occurred in the last four years (1998- 2001) of Reformation in Indonesia. It is hoped that this study may start the beginning of longer and deeper studies upon the matter. May God bless all of you, who helped me finish this study as planned, and may this study be beneficial, not only for Japan, but also for Indonesia. Sunaryati Hartono TABLE OF CONTENTS Preface Table of Contents Acknowledgement Chapter I Introduction Chapter II Post Soeharto Legal Developments and Reforms of Political Law in Indonesia Chapter III The 1945 Constitution and its Amendments I. Introduction II. The First Amendment III. The Second Amendment (known as the “First Amendment”) IV. The Third Amendment (known as the “Second Amendment”) V. Conclusions Chapter IV Democratization Process in Indonesia through Law I. Many More New Laws are Needed II. Capacity Building and Institutional Reform III. Independence of the Judiciary IV. Steps of Judicial Reform V. Judicial Review VI. The Administrative and Procedural Supervision of Courts by the Ombudsman Chapter V Legal Measures for Better Protection of Human Rights and Improvement of Good Governance I. Introduction II. Laws in Support of Better Protection of Human Rights III. Ombudsmanship in Indonesia IV. The National Ombudsman Commission of Indonesia V. The Objective and the Mandates VI. The Principle of Independence i VII. The Principles of Impartiality and Immunity VIII. The Future of the National Ombudsman of Indonesia IX. Conclusions Chapter VI Decentralization of Powers and Local Autonomy I. Introduction and Short History of Decentralization II. Law No. 22/1999 and its Basic Thoughts III. Conclusions Chapter VII Conclusions Bibliography Annex 1 The 1945 Constitution of the Republic of Indonesia Annex 2 The First Amendment to the 1945 Constitution of the Republic of Indonesia Annex 3 Resolution of the People’s Consultative Assembly No. VII/MPR/2001 Regarding Indonesia’s Vision of the Future Annex 4 Law of the Republic of Indonesia No. 2 of 1999 on Political Parties Annex 5 Law of the Republic of Indonesia No. 3 of 1999 on General Elections Annex 6 Law of the Republic of Indonesia No. 4 of 1999 on the Structure and Position of the People’s Consultative Congress Parliament and the Regional Parliament Annex 7 Law of the Republic of Indonesia No. 22 of 1999 on Regional Government Annex 8 Law of the Republic of Indonesia No. 25 of 1999 on the Sharing of Finances between the General Government and the Region ii Chapter I Introduction This treatise on Political Change and Legal Reform towards Democracy and Supremacy of Law in Indonesia was written upon the request of the Institute of Developing Economics (IDE-JETRO) as part of their studies on Law and Political Development in Asian Countries.
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