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How Lawyers Win Land Conflicts for Corporations.Indb Cover Page The handle http://hdl.handle.net/1887/123059 holds various files of this Leiden University dissertation. Author: Kouwagam, S.U. Title: How lawyers win land conflicts for corporations: Legal Strategy and its influence on the Rule of Law in Indonesia Issue Date: 2020-06-23 2 The Illusion of Prestige: Business and Politics of Lawyers in Indonesia The lawyer calmed down as soon as we landed in Singapore. He was slouching, his shoulder down while gazing through the car window. He took the time to sit down for lunch. His meetings were creative and rational, sharing and discussing technical knowledge on law and finance with CEOs and accountants. ‘I always relax when I’m here,’ he said, probably because he did not have to be constantly on edge, not thinking about another trick he could pull from his sleeves, like in his meetings in Jakarta. As we have seen from the previous chapter, lawyers play the active role that judges should in legal interpretation. They practice law by educating clients and translating the language of the law, predicting outcomes and resolving disputes (cf. Barclay 2004). Lawyers bridge citizens and the legal system, and society and the law. They monopolize this representational role in judi- cial proceedings. Lawyers have certain duties and responsibilities towards clients, alongside a certain degree of autonomy. This autonomy is awarded to the profession to uphold and promote the law and the idea of justice. The duties and privileges are similar globally, with principles and standards internationally enacted by organisations such as the United Nations and the International Bar Association. Chapter 1 explained the lack of clear rules regarding legal procedure, determined instead largely by practice. This chapter serves to understand the structures underlying this practice. I will argue that how lawyers perform different roles in operating the legal system, and their use and invention of strategies make them the most dominant actors in shaping the development of the legal system and legal procedure. The following questions guide my argument: How much independent judgment do lawyers have to practice in the absence of legal certainty? What guides their decisions? What is the role of normative ethical frame- work and is it being enforced? What kinds of professional relationships do they have and how do they use these relationships in practice? This chapter answers these questions by explaining the role and func- tions of lawyers in Indonesia, their background, training, and education, and the imbalances between their beliefs and the rules about professional duties and responsibilities. It will describe how law firms are a key arena where lawyers form their professional ideology (cf. Nelson & Trubek 1992) and how firms establish their image to attract certain kinds of clients. It will also describe how lawyers conduct their relationships inside the firm, with lawyers from other firms, and with clients, notaries, judges, police, prosecutors, and bar associations. 50 Chapter 2 There is a rich array of research on private lawyers in the United States and United Kingdom (e.g., Moorhead 2014; Heinz & Laumann 1982; 2005; Abel 2003; Nelson & Trubek 1992; Galanter & Palay 1991) and research on lawyers and their ethical dilemmas from having corporate clients (e.g. Bagust 2013; Jonas 1987). Some research has also focused on private lawyers in China (e.g., Thornton 2008; Liu 2006; Lo & Snape 2005; Zongling 1993; Zheng 1988; Gayle 1978). Dezalay and Garth (1997) presented the role of lawyers and their social capital in business. Studies of Indonesian private lawyers cover pre-reformasi periods well.1 That coverage was part of Daniel Lev’s work, one of the most productive socio-legal scholars on Indonesia. After his passing in 2006, researchers have paid little attention to private lawyers, focusing instead on cause lawyering and legal aid.2 2.1 Role and Functions of Lawyers During colonial times in 1928, the first law school opened in Batavia to fill posts in landraad (courts for natives) and to assist European judges, with the rationale that native Indonesians are more capable of relating with native litigants and defendants (Massier 2008: 79-85). However, the role of lawyers remained ambiguous for many years. The 2003 Law on Lawyers was the first statute that regulated the role of lawyers in Indonesia, enacted 58 years after the declaration of indepen- dence. Before that, references about lawyers or “legal advisor/consultant” are mentioned in various regulations since 1947.3 The Law on Lawyers states that ‘[l]awyers are people with a profession to give legal service, in and outside of courts […]’.4 It includes the enactment of a Code of Ethics, an Advocates’ Council, and a new Bar Association. It also includes registra- tion and discipline, supervision, rights and responsibilities, remuneration, responsibility to provide legal aid, foreign lawyers, and attributes of a lawyer. The Indonesian Constitutional Court has detailed the role of lawyers as ‘to give legal consultancy, legal assistance, perform power of attorney, represent, accompany, defend and conduct other legal actions for clients’ legal interest in and outside of courts. The role of lawyers outside of courts 1 Reformasi is a period starting in 1998 after the fall of Soeharto. 2 See work by Crouch and Tim Lindsey. It has to be noted that a number of socio-legal scholars completed an unfi nished work of Daniel Lev after his passing and published a biography of Yap Thiam Hien in 2011. See Lev (2011). 3 See footnote 12 and 13 below. 4 Art 1(1) Law No. 18/2003. The Illusion of Prestige: Business and Politics of Lawyers in Indonesia 51 has given meaningful contribution for empowerment of society [sic] and national legal reform, including settling disputes outside of courts.’5 The International Bar Association (IBA) prescribes a set of principles of professional conduct to lawyers around the world. These international principles are quite general, as assessing the criteria for imposing liability, sanctions and disciplinary measures are left to local bar associations. In Indonesia, only PERADI is active in building a relationship and cooperation with the IBA, and since even PERADI is now split in three associations, this likely applies to only a single ‘branch’ of PERADI (see section 2.2.1 below). There is a clash between the international principles by the IBA and the Indonesian Code of Ethics regarding the role of lawyers in defending clients’ interests. The international principle states “a lawyer shall treat clients’ interests as paramount, subject always to there being no conflict with the lawyer’s duties to the court and the interests of justice, to observe the law, and to maintain ethical standards”.6 While the Indonesian Code of Ethics place lawyers above their clients. The preamble of the Indonesian Code of Ethics states that lawyers are law enforcers (“penegak hukum”) who are at par with other law enforcers7, and it is an honor profession (“officium nobile”). In the Indonesian Code of Ethics, the prestige of lawyers is preserved more than its role as legal service providers. Lawyers in Indonesia shall be “honest and responsible in carrying out their profes- sion, both to the Client, the court, the State or the community, and especially to themselves”. Additionally, the Indonesian Code of Ethics provides several clauses not only allowing lawyers to reject clients or cases8 but requiring them to do so9 because in their role as lawyers, they are “free and independent” (Art. 3(c)). In sum, while the international normative frame- work put the interests of clients paramount, in Indonesia, lawyers are most responsible to themselves and to their own conscience (“hati nurani” (Art. 3(a)). The Indonesian Code of Ethics describes the role of lawyers by using morally normative words such as polite, honest, and respectable. This is comparable to the condition of the unclear rules of legal procedure I mentioned in the previous chapter. When the boundaries about ‘duties to the court’ and ‘observing the law’ are unclear, putting clients’ interest paramount to those could mean using the lack of clarity for the clients’ 5 See Constitutional Court decision No. 26/PUU-XI/2003, on whether lawyers are protected from civil and criminal prosecution only inside of courts, or also when performing their work outside of court. The Constitutional Court revised Article 16 of the Law on Lawyers (No. 18/2003) to read that lawyers cannot be civilly or criminally prosecuted while performing their professional duties and responsibilities in good faith while defending their client’s interest both in and outside of courts. 6 Principle 5 of IBA International Principles on Conduct for the Legal Profession. 7 Police, prosecutors and judges. 8 Article 3(a) of Indonesian Lawyers’ Code of Ethics. 9 Article 4(g) of Indonesian Lawyers’ Code of Ethics uses the word “must”. “Lawyers must reject cases that they believe to having no legal basis”. 52 Chapter 2 advantages. Therefore maintaining ethical standard should be paramount to protecting clients’ interest in Indonesia. Despite the 2003 Law on Lawyers and the Code of Ethics, the profession is still viewed with disapproval and suspicion. A joint study by USAID, the Asia Foundation, and PSHK found that lawyers value government recognition over society’s trust (Kadafi 2001: 96-99). The study found that half of the respondents disagreed that lawyering is an honorable profession, because professionals did not meet their expectations (as enforcers of justice, defenders of the weak, and bridges between society and the legal process), seemingly focused instead on being willing to do anything to win, being money oriented, distorting facts, and playing with the law (Kadafi 2001: 267-270). These findings resonate with the dilemmas between zealously defending clients and maintaining ethical conscience I mentioned above. This lack of trust towards lawyers, added with the civil procedure’s inef- ficient and uncertain characters analysed in the previous chapter, leads to a general distrust of the legal system.
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