It meets every five years. The DPR acts as the legislature. Laws become effective after having been passed by the DPR, signed by the President and published in the State Gazette. Legal System With important exceptions, particularly the Foreign Investment and Tax Laws, much of the Indonesian legal systems is based on very 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 companies Law has been enacted and effective as from March 1996. There are a series of sources of laws which in theory fit into a hierarchy as follows The Indonesian Constitution Decrees of the National Assembly Government Regulations signed by the President and ratified by the DPR Government Regulations signed by the President to implement laws Presidential Decrees Ministerial Regulations Ministerial Instructions. Whilst these do not have the force of law, they are often treated as though they do.