We have all seen foreign television series or mainstream movies showcasing lawyers in suits presiding over a case, arguing and counter arguing between the lawyers of the plaintiff and the defendant, convincing the jury and the judge on their argument. As we have entered into the actual profession of a lawyer in the Indonesian legal system we know now that the process or even the positions in Indonesian court is completely different. As we enter the work force we still have the image of the lawyers in suits in our minds. Sometimes, we get lucky and we do encounter these foreign lawyers working along side us in our law firms. The question now is what are these foreign practicing lawyers doing in our firm? What is it that they do? And what can or cannot be done by these lawyers when practicing in an Indonesian firm?

Under Law of the Republic of Indonesia number 18 of 2003 on Advocates (“Advocate Law”) a foreign lawyer or foreign advocate is defined as an advocate of foreign nationality that performs its profession in the territory of the Republic of Indonesia based on certain provisions of the law.[1] Specific provisions regarding foreign lawyers is stipulated under Article 23 and Article 24 of the Advocate Law. The following provisions must be adhered to when employing or working with a foreign advocates:

1. Foreign advocates are prohibited from appearing in court, practising and/or opening a legal service office or representative in Indonesia.[2]
2. Law firms may employ foreign advocates/lawyers as employees or experts in the field of foreign law upon the permission of the government of Indonesian with the recommendation of the Indonesian Advocate Organization. The foreign law herein means the law of which the foreign lawyer originates from and/or any international law in the field of business and arbitration.[3]
3. Foreign advocates are obligated to provide legal services free of charge for a certain period of time to the world of legal education and research.[4]
4. Foreign advocates shall be subject to the Indonesian advocate code of ethics and the applicable law.[5]

In practice foreign lawyers or advocates who serves as foreign counsels in Indonesia will usually not advise in the day-to-day legal advising to a client of the firm but would rather actually perform services such as:

1. Liason or contact person to clients who are based abroad but have a case or transaction in Indonesia, especially if there are language difficulties between the Indonesian lawyers and the client;
2. Assist in marketing of legal services to foreign client who have businesses in Indonesia;
3. Educating Indonesian lawyers of international practices for multinational transactions;
4. Educating foreign laws if there are cases that involve foreign laws.

From the discussion above we can see that foreign lawyers only serves a vital but rather niche purpose and not anything general. Foreign lawyers under the prevailing Indonesian law are specifically and explicitly prohibited to advise foreign clients concerning Indonesian laws, but said lawyers are allowed to assist in the communication themselves especially if the client and Indonesian lawyer does not have any common language to communicate in.

This is essential as a nation of law we are to uphold our sovereignty especially those who are allowed to practice and uphold our own laws and constitution. Only having qualified Indonesian lawyers practice Indonesian law while prohibiting foreign lawyers from practicing Indonesian law guarantees the sovereignty of our laws from foreign intervention and influence and thus our laws is guaranteed to serve the best interest of the Indonesian people.

Then another question arise, what happens when a foreign lawyer advises Indonesian law? even though they are prohibited and also unqualified to do so.

There are several cases where foreign lawyers have been accused of practicing as a lawyer actively advising Indonesian law.

In 2007, there are an alleged illegal practice by foreign advocates in Jakarta. A prominent example of the enforcement of these provisions can be traced to 2007, when Otto Hasibuan, then-chairman of the Indonesian Bar Association/Persatuan Advokat Indonesia (“PERADI”), publicly exposed the illegal practice of over 100 foreign lawyers operating in Indonesia. These individuals, largely from the United States, the United Kingdom, and Australia, were found to be working in major law firms in Jakarta without proper permits or recognition from PERADI.[6]

These foreign lawyers often held titles such as "foreign legal consultants" or "advisors," yet they allegedly provided legal opinions and services on matters of Indonesian law – a direct violation of the Advocate Law. Moreover, they were involved in negotiations and contract drafting governed by Indonesian regulations. According to PERADI, this situation led to an economic disadvantage for local lawyers and compromised the enforcement of ethical and professional standards. PERADI, alongside the Ministry of Law and Human Rights, conducted investigations into firms suspected of breaching these rules.[7]

In another case, a concrete example can be found where a foreign lawyer was alleged to have actively advised on Indonesian law, thereby violating the very nature and regulatory framework governing the legal profession in Indonesia. This issue was brought to light in High Court Decision No. 623/PDT/2019/PT.DKI, which involved a dispute between Sumatra Partners LLC (the “Plaintiff”) and ABNR Counsellors at Law (the “Defendant”). One of the Plaintiff’s key allegations was that the Defendant had appointed a foreign legal consultant, Mr. Oene J. Marseille, to lead a legal team in providing legal services for a project in Indonesia.[8]

This appointment raised significant concerns, as it demonstrated a foreign lawyer engaging in legal advisory activities related to Indonesian law, which constitutes a clear violation of the Advocate Law and its implementing regulations. Under Indonesian law, foreign lawyers are strictly prohibited from advising on or practicing Indonesian law, and their presence in local law firms must be limited to advisory roles on foreign or international law only. Moreover, assigning a foreign lawyer to lead a legal team within an Indonesian jurisdiction—even indirectly—further contravenes the professional and ethical boundaries established under national law.

This case illustrates that delegating responsibilities to foreign lawyers beyond their permitted scope, especially in matters involving Indonesian law, exposes both the foreign lawyer and the firm to legal liability and ethical violations. It underscores the importance of maintaining regulatory compliance and respecting jurisdictional boundaries in cross-border legal practice.

As evidenced by this case, both the foreign lawyer and the affiliated law firm itself may be subject to malpractice claims, which could significantly damage their professional credibility and institutional reputation. While the presence of foreign lawyers in Indonesia law firms is permitted under certain conditions, their roles must remain strictly supplementary, providing added value through international expertise, without superseding or duplicating the functions of licensed Indonesian advocates. In this context, foreign legal consultants are positioned as a strategic support in matters involving cross-border or foreign legal issues not as the main legal actor.

Author:

Ryanshah Akbar Putra S.H. - Senior Associate of RH Consulting

Luthfi Nadhif S.H. - Junior Associate of RH Consulting