Source of Indonesian Law:

• Law of Indonesia is based on a civil law system, intermixed with

customary law, the Dutch law and Islamic Law Dutch presence and
subsequent occupation of Indonesia for 250 years has left a legacy of
Dutch colonial law, largely in the Indonesia civil code.
• Following the independence in 1945, Indonesia began to
modifications of the of existing laws. The above components (adpt,
Dutch law, and Islamic law) still co-exist in the current Indonesia laws.
• The current Indonesian Laws are also influenced by the “Anglo Saxon
System” that derived from the common law system of England.
 BUSINESS LAW
PRINCIPLES
OF LAW

PRINCIPLES OF PRINCIPLES OF
PRIVATE LAW PUBLIC LAW

PRINCIPLES OF
ECONOMIC LAW

WELFARE STATE
THE INDONESIA LEGAL SISTEM
INDONESIAN LAW

PUBLIC LAW PRIVATE LAW

CONSTITUTIONAL LAW PRIVATE LAW

CRIMINAL LAW COMMERCIAL LAW

ADMINISTRATION LAW PRIVATE LAW PROCEDURE

CRIMINAL LAW PROCEDURE

 BUSINESS LAW
Division of Law:
A. Public Law
- Criminal Law - Administrative
- Constitutional Law - Tax Law
- Criminal Law Procedure - Environmental Law
- Traffic Law - Health Law
- Financial Law
B. Private Law
- Civil Law - Contact Law
- Business Law - Trade Law
- Intellectual Property Law - Company Law
- Bankruptcy Law - Consumer Protection Law
 The Hierarchy of Legislation
Indonesian legislation is comprise of different forms. The official hierarchy of Indonesia
legislation (from top to bottom) is enumerated under Act No.12, 2011 (previously Act No.10,
2004) regarding the Formulation of Statute and Regulations, as follows:
• 1945 Constitution (Undang-Undang Dasar 1945)
• People consultative Assembly Resolution (Ketetapan MPR)
• Law (Undang-Undang) and Government Regulation Substituting a Law (Peraturan Pemerintah
Pengganti Undang-Undang)
• Government Regulation (Peraturan Pemerintah)
• Presidential Regulation (Peraturan Presiden)
• Regional Regulation (Peraturan Daerah)
Besides, there are also Presidential Instruction (Instruksi Presiden or Inpres), Ministerial Decree
(Keputusan Menteri or Kepmen) and Circulation Letters (Surat Edaran)
 The Hierarchy of Indonesian Legislation
TAP No. XX/MPRS/1966 UU No. 12 Tahun 2011
• UUD 1945 • UUD 1945
• Ketetapan MPR • TAP MPR RI
• UU/PERPU • UU/PERPU
• Peraturan Pemerintah • Peraturan Pemerintah
• Keputusan Presiden • Peraturan Presiden
• Peraturan Daerah • Perda Provinsi, and
• Perda Kabupaten/Kota

UU No. 10 Tahun 2004

• UUD 1945
• UU/PERPU
• Peraturan Pemerintah
• Peraturan Presiden
• Peraturan Daerah
The Hierarchy of Indonesian Law
Constitution
(UUD 1945)

State Gazet
(TAP MPR)
Nasional Laws
Acts/Statute And Substitute Of Act
(UU/Perpu)

Government Regulation (Peraturan

Pemerintah)

Provincial Regulation (PERDA PROVINSI)

Local Laws
District/Municipality Regulation (PERDA
KABUPATEN)
How to enact a Statute
• Undang-Undang (Statute/Act) can only be established by the People’s
Representative Council or DPR. The excecutive body (the President) can propose a
bill (Rancangan Undang-Undang or RUU) to DPR.
• During the process of establishing a bill into a law, DPR will create a small task
group to discuss the bill with the related ministries.
• When a bill has been agreed upon by the parliament, then the President shall
endorse a bill into law. However, even if the President refuses to endorse a bill that
has passed, after a thirty days the bill is automatically be enacted as law and be
promulgated as such.
• When a bill cannot be passed into law, the bill cannot be proposed again during
the current term of the legislative members.
Basic principles of law
• Lex Specialist Derogate Lex Generalis (A Specific Statute Defeat A
General Statute)
• Lex Superior Derigat Lex Inferiore (A Higher Statute Defeat A Lower
Statute) : can not be contrary, and will be fired it. Because don’t have
power. And, comparing to Mahkamah Agung.
• Lex Posterior Derogate Lex Priore (A New Statute Defeat The Previous
Statute)
BUSINESS LAW
PANCASILA
PHILOSOPHY
(Philosophy Of Life)
C
R
I
AN IDEAL LAW T System make a decisions
JUDICIAL
(RECHT IDEE) E about parliament on the law.
R
I
A
Legislation, parliament, social
SOSIOLOGIS fearless
• CITERIA OF JUDICAL:
1. The law must be made by the law maker institution.
2. The law must not conflict with the existing higher law.

• CITERIA OF SOCIOLOGY:
1. The law must be fair to the people.