Saturday, November 22, 2008


Since the last few weeks the mass media has been busy covering news about the intensive investigations carried out by the Attorney General Office on the SISMINBAKUM Online System which leads to the detention of 3 former Director General of the Department of Law and Human Rights, and several former Minister of Law & Human Rights have been summoned. The objective of this investigation is to probe the alleged inappropriate usage & distribution of revenue amounting to Rp 400 Billion.

In order to to understand this matter thoroughly, I read Kompas, Detik, Jakarta Post, and browsed the net, including the blog of former Minister of Law & Human Rights (1999-2001 & 2001-2004) who proposed the system: Yusril Ihza Mahendra, and also talked to several Notary Public friends. And here is a short overview on this controversial matter :
In 1999 our country was facing an economic crisis, and the government was pressured by IMF to provide vast opportunity to private business entrepreneurs among others by expediting the legalization process of legal entities. At that time when the manual system was used, inquiry for name of new company can only be replied after several months or even a year. Having no money, the Yusril as Minister of Law & Human Rights appointed PT SRD to develop an online registration system. PT SRD built the system using their own money based on a Build Operation, Transfer (BOT) scheme until 1010, whereby PT SRD collect fees, and share with the Workers Cooperative of said Department based on 90%:10% ratio. The Cooperative then shared its 10% portion with the Directorate General of Public Law base on a 40%:60% ratio. With this system, a request for a name of new company can be answered in only 3 minutes, so a Notary Public can sufficiently & effectively serve a client over cups of coffee at a Starbucks cafe. But, Notaries may choose to use the manual system if the want to.
In 2003, the State's Financial & Development Auditor(BPKP) demanded the revenue from the Online System to be transferred to the State's Treasurer. This can be done if the Government take over the business of PT SRD or by building its own Online System after the BOT Agreement with PT SRD completed in 1010.
Yusril's successors as Minister of Law & HR, Awaludin Hamid (2004-2007) and Andi Matalatta (2007-now) decided that after the BOT with PT SRD expired in 2010, the Online System would be turned into a Public Service Board.
The controversy arises due to nontransparent distribution of the 10% portion of the Workers Cooperative shared with the Directorate General of Public Law. There are rumors that the wives of the officials Directorate General of Public Law can use the revenue.

As a conclusion, I felt that the Sisminbakum is actually good for quick processing of establishment of new companies, and certainly beneficial for our country's ailing economy. Especially that this System is an alternative to the manual administration which is still available for usage.
The controversy over the System arise due to the lack of transparency about the system itself. If the history about the creation of said system has been socialized properly to the public, we would have understand. Let us hope that this matter would be solved clearly and justifiably, any one responsible for wrong doing should be punished, if not then they should be released and have their image restored.


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