Even though the Task Force for Eradication of the Law Mafia has now been dismantled,
we bring it up here for a reason: many expatriates, even those who have lived in
Indonesia for years, have never heard the term Mafia Hukum or Law Mafia.
But clearly it is real, it is crippling to the Indonesian legal system, and it arouses
anger, frustration, and fear in the Indonesian public.
The two main sources of legal information for most expatriates in Indonesia are
law firms and real estate offices. Reputable businesses inform their clients fully
about the Indonesian legal environment. But sometimes, reading some promotional
websites, you might receive the impression that a little care in choosing your lawyer
and researching laws about land ownership, business establishment, or marriage will
overcome any possible difficulties in the law. When advisors fail to explain fully
the situation, and especially fail to explain the Law Mafia, expatriates can be
left with unrealistic expectations.
In later chapters we will explore law and real estate businesses in more detail.
But it is worth a note here that these businesses sell products—land or services—which
some might feel would have weaker markets if expatriate customers doubted their
competence. Some villa developers, for instance, might fear that they would have
fewer sales if they could not assure their buyers that their real estate titles
and the legal advice behind them were secure.
The result is that expatriates often feel that corruption is a distant problem,
an inconvenience or expense which may affect them by requiring a small extra payment
at immigration or customs.
The reality is they could lose everything—villa, business, land, children—and end
up fleeing Indonesia for their lives.
There are good reasons to buy land, start business, or marry in Indonesia. But secure investment
or safety under law are definitely not among them.