[Kecak Dance, Bali]

The Problem

HIGH OPERATIONAL COST/EXPENSES

Many civil and criminal proceedings, as well as economic activities, occurred outside Jakarta while most of clients tend to appoint lawyer(s) from Jakarta due to their perceived extensive experience and proven quality or track-record. Due to Indonesia’s geographical nature, lawyer from Jakarta will incurred significant operational costs/expenses to attend a matter or court hearing outside Jakarta (i.e. travel time, cost for transportation/airfare and accommodation, allowance for meal and local transportation, etc.). Moreover, attending a matter or court hearing outside Jakarta is generally a full-day assignment for a lawyer based in Jakarta – at least.

For example, the estimated expenses for a a Jakarta law firm (aside from the professional fee) to dispatch their lawyer(s) to attend a matter or court hearing outside Jakarta:

TIME INEFFICIENCY

Having in mind that many investment or economic activities occurred outside Jakarta but most of clients tend to appoint lawyer(s) from Jakarta, it is highly likely that there will be a time delay from the appointment of lawyer(s) until the time where the lawyer(s) can attend on site and perform effectively.

For example, a Jakarta law firm may require approximately 24 hours – 36 hours to prepare their lawyer(s) and arrange for his/her travel to the site outside Jakarta. This time frame may be longer if the firm require client to pay a significant sum of deposit to cover their initial expense (to dispatch their personnel). Once arriving on site, the lawyer(s) may also need additional time to initiate contact and establish relationship with local authority, in order to minimize risk of the authority treated the client with prejudice. This may gave rise to significant strategic disadvantage in the event of an emergency situation (e.g. vessel collision, allegation from authorities, operational incident, third party damages-related issues, etc).

EXPENSIVE HOURLY RATES

Generally speaking, the common hourly rates for the mid-high level lawyer from top and recommended law firms for corporate, commercial dispute and criminal litigation matters in Jakarta are USD 200 – 700 / hour. Consequently, for a full-day assignment the client will need to pay between USD 1,600 – 4,000 (approximately IDR 22,6 million – 79,2 million) per lawyer (assuming that billable hour for a full-day assignment is capped to a maximum 8 hours per day, the estimate could be significantly higher if the lawyer is allowed to billed the actual hours spent for one day).

How Will PRO Alliance Solved The Problems?

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