Such policy, under the Hierarchy of Indonesian Legal System, is higher than the Law stipulated by the President with DPR approval. Recently it was decided that the MPR would meet once a year. The DPR acts as the legislative body. With important exceptions, particularly the Foreign Investment and Tax Laws, much of the Indonesian legal system is based on old Dutch colonial law. Practical problems regularly arise in the legal system.
Litigation can be a frustrating and unpredictable process that is best avoided.
Consequently many disputes rely on arbitration clauses for dispute resolution. Commercial law is based on the Dutch Commercial Code which was promulgated in the middle of the 19th Century. A new Company Law has been enacted and became effective in March 1996. Whilst these do not have the force of law, they are often treated as though they do. These courts exercise both civil and criminal jurisdiction.