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Indonesia acts to clean up its courts

Source
Straits Times - April 6, 2000

Marianne Kearney, Jakarta – In a move to restore confidence and address allegations of corruption, Indonesia's Attorney-General announced that his office would appoint non-career judges next week to help clear the backlog of commercial and civil cases now awaiting trial.

Mr Marzuki Darusman's disclosure of the appointment seems to be part of the government's strategy to convince the global community that it is committed to instituting reforms of the legal and court systems demanded by the International Monetary Fund (IMF).

Indonesia's financial credibility was hit last week when the IMF said it was delaying payment of US$400 million in loans until bank and corporate restructuring programmes were speeded up.

The government hopes to complete many of these reforms by Saturday – before a crucial April 12 Paris Club creditors' meeting, where Indonesia will seek to reschedule US$2.1 billion in overseas loans.

But bank restructuring has been hampered by the verdicts of commercial courts – which have either ruled inconsistently or been seen as favouring insolvent companies.

In a controversial case last week, the Jakarta commercial court ruled that the Indonesian Bank Restructuring Agency (Ibra), which seized Bank Bali last July, did not have legal right of control.

One anti-corruption campaigner, lawyer Teten Masduki, estimated that only a small number of the 51 Supreme Court judges are clean. Hence the debate over where the commercial and Supreme courts will obtain their new judges.

Under the plan for ad-hoc judges, the government will look to industry experts or academics – untainted by association with the previous government – to serve on the bench. Mr Marzuki said talks were underway with related ministries and departments.

IMF Indonesia representative John Dodsworth has blamed corruption within the legal system for Ibra's inability to seize assets of insolvent companies.

To overcome the shortage of clean and skilled judges, a presidential adviser suggested that Indonesia import Dutch judges to hear commercial cases. But Mr Marzuki yesterday said this was legally impossible as under the law, only Indonesian nationals could preside over its courts.

He also knocked back the considerable criticism he has received in the press – and from student groups that hold almost daily protests near the residence of former President Suharto – that he has been too slow in proceeding with a corruption probe into the former leader. There has been speculation on whether he was serious about the probe, given President Abdurrahman Wahid's statements that he would pardon Mr Suharto if he was found guilty. But Mr Marzuki said he would proceed with the case regardless of Mr Abdurrahman's remarks.

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