Financial management

August 2016 – December 2016

INTERNATIONAL TRADING REGULATION

Hannan Aminatami Alkatiri

School of Business Management
Faculty of Business and Social Science
IULI – International University Liaison Indonesia
BSD City, Serpong, Tangerang, Indonesia
Email: hannanalkatiri@gmail.com

Alyssa Khairafani
School of International Business Administration
Faculty of Business and Social Science
IULI – International University Liaison Indonesia
BSD City, Serpong, Tangerang, Indonesia
Email:

Vathra Arya Laena Putri

School of International Business Administration
Faculty of Business and Social Science
IULI – International University Liaison Indonesia
BSD City, Serpong, Tangerang, Indonesia
Email: vathrarya@gmail.com

ABSTRACT
In this paper we will discuss most about regulation and laws in legal system
that apply in Indonesia and we will also discuss about trade laws, that contain about
international trading, stocks trading, and export import. In UU RI has been set about
legal system and trade, based on the regulation or rules in Republic of Indonesia.

ABSTRAK
Dalam karya ilmiah ini kami akan membahas mengenai peraturan dan hukum
mengenai sistem legal yang berlaku di Indonesia dan akan dibahas juga mengenai
adanya hukum tentang perdagangan, yang menyangkut perdagangan internasional,
perdagangan saham, dan ekspor impor. Dalam UU RI, telah diatur mengenai sistem
legal dan perdagangan sesuai dengan peraturan Negara Republik Indonesia.

I. INTRODUCTION
Some country decided to make a strict regulation to prevent any risk in the
future. The legal system of a country refers to the rules, or laws, that regulate
behavior, along with the processes by which the law that occur. Legal system for the
country is so much important for international business. A country’s laws regulate
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August 2016 – December 2016

business practice, define the manner for its transaction, and set down the rights and
obligations that involved in the businesses. It also differ significant ways. A
difference in legal system can affect the attractiveness of a country as an investment
site or market (Hill, Wee, & Udayasankar, 2016). In Indonesia, the government makes
a system about business that happen in Indonesia. Indonesia’s investors prefer to
invest their money to other country. Government makes a program called tax amnesty
where the tax removed until the end of the program. From the tax amnesty,
Indonesia’s wealth recorded after 3 moths as 3.065 Trillions in rupiah (Kabar Siang,
2016). Amnesty affected to international regulations for stock and bond. Indonesia
law said “Pasal 1 Angka 1 UUPT: Perseroan Terbatas, yang selanjutnya disebut
Perseroan, adalah badan hukum yang merupakan persekutuan modal, didirikan
berdasarkan perjanjian, melakukan kegiatan usaha dengan modal dasar yang
seluruhnya terbagi dalam saham dan memenuhi persyaratan yang ditetapkan dalam
Undang-Undang ini serta peraturan pelaksanaannya.” Before it happen

Countries do trade activity, such as export import, stock, and international

trading to fulfill the country’s necessaries. Those kinds of activities are important to
have relation with the other country. So, in this paper, we will explain more about the
activity of countries to increase the income and reduce the country’s storages.

II. LITERATURE REVIEW

II.1. DIFFERENT LEGAL SYSTEM
The important is the legal system in the country. Like the economic system of a
country, the legal system is influenced by the prevailing political system. The
governments of a county defines the legal framework within which firm do business
and often the law regulate business reflect the rule’s dominant political ideology.

Every country has different law. The legal system is something that able

Here focus on several issues that illustrate how legal system can affect the
international business. There are three main types of legal systems or legal traditions
in use around the world: common law, civil law, and theocratic law.

 Common Law
Based on tradition, precedent, and custom. A tradition refers to a country’s
history. Precedent to earlier event or action, that regarded as an example or guide of
considered in similar circumstances.
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Figure 2: Justice

Source: (Wikipedia, 2014)

From picture above, that common law is a law that towards many people. That
picture tells about how to be fair without seeing each individual or group. By that,
every existence has their own right. And also everybody is protected by the common
law. (Wikipedia, 2014)

 Civil Law
A body of rules that delineate private rights and remedies. A civil law system
tends to be less adversarial than a common law system, since the judges not looking
detailed about the tradition, precedent, and custom. The judges have less flexibility
because they have the power only to apply the law.

 Theocratic Law
The law based on religious teachings. Islamic law is the most widely practiced
theocratic legal system in the modern world, although usage both Hindu and Jewish
law persisted into the 20th century. Islamic law is primarily a moral rather than a
commercial law and intend to all aspect of life (Hill, Wee, & Udayasankar, 2016).

II.2. TRADING
Trade is an activity of buying, selling, or exchanging goods or services between
people, firms, and countries (Collins, 2016). Countries trade with each other when,
on their own, they do not have the resources, or capacity to satisfy their own needs
and wants. By developing and exploiting their domestic scarce resources, countries
can produce a surplus, and trade this for the resources they need (Why do Countries
Trade?, 2016).

II.2.1. INTERNATIONAL TRADING

International trading is the activity of exchange goods or services between two
countries or more along the international borders. This type of trade allows for a
greater competition and more competitive pricing in the market. The competition
results in more affordable products for the consumer. The exchange of goods also
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affects the economy of the world as dictated by supply and demand, making goods
and services obtainable which may not otherwise be available to consumers globally
(International Trade, 2016). Trading globally gives consumers and countries the
opportunity to be exposed to goods and services not available in their own countries.
Almost every kind of product can be found on the international market: food, clothes,
spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded:
tourism, banking, consulting and transportation (Haekal, 2015). International trading
is important for countries to fulfill the necessaries that cannot be fulfilling by
themselves, so those countries need another countries to complete the necessaries.

International trade represents the sale and trade of goods, services and capital
across international borders. Such trade of food, clothes, machinery, oil, commodities
and currency gives corporations access to customers throughout the world, and it
gives customers opportunities to purchase a wider selection of goods and services
(International Trade, 2016). In Indonesia regulation, there is law “UU no. 7 Tahun
2014 Bab XII Pasal 82-87” that regulates all the international trading system
(Haryana, 2015). In that regulate is said:
BAB XII KERJA SAMA PERDAGANGAN INTERNASIONAL
Pasal 82 (1) Untuk meningkatkan akses Pasar serta melindungi dan
mengamankan kepentingan nasional, Pemerintah dapat melakukan kerja sama
Perdagangan dengan negara lain dan/atau lembaga/organisasi internasional. (2) Kerja
sama Perdagangan sebagaimana dimaksud pada ayat (1) dapat dilakukan melalui
perjanjian Perdagangan internasional. (Hukum Online, 2014)
Pasal 83 Pemerintah dalam melakukan perundingan perjanjian Perdagangan
internasional sebagaimana dimaksud dalam Pasal 82 ayat (2) dapat berkonsultasi
dengan Dewan Perwakilan Rakyat. (Hukum Online, 2014)
Pasal 84 (1) Setiap perjanjian Perdagangan internasional sebagaimana
dimaksud dalam Pasal 82 ayat (2) disampaikan kepada Dewan Perwakilan Rakyat
paling lama 90 (sembilan puluh) hari kerja setelah penandatanganan perjanjian. (2)
Perjanjian Perdagangan internasional yang disampaikan Pemerintah sebagaimana
dimaksud pada ayat (1) dibahas oleh Dewan Perwakilan Rakyat untuk memutuskan
perlu atau tidaknya persetujuan Dewan Perwakilan Rakyat. (3) Keputusan perlu atau
tidaknya persetujuan Dewan Perwakilan Rakyat terhadap perjanjian Perdagangan
internasional yang disampaikan oleh Pemerintah sebagaimana dimaksud pada ayat
(2) dilakukan paling lama 60 (enam puluh) hari kerja pada masa sidang dengan
ketentuan sebagai berikut: a. Dalam hal perjanjian Perdagangan internasional
menimbulkan akibat yang luas dan mendasar bagi kehidupan rakyat yang terkait
dengan beban keuangan negara dan/atau mengharuskan perubahan atau pembentukan
undang-undang, pengesahannya dilakukan dengan undang-undang. b. Dalam hal
perjanjian Perdagangan internasional tidak menimbulkan dampak sebagaimana
dimaksud dalam huruf a, pengesahannya dilakukan dengan Peraturan Presiden. (4)
Apabila Dewan Perwakilan Rakyat tidak mengambil keputusan dalam waktu paling
lama 60 (enam puluh) hari kerja pada masa sidang sebagaimana dimaksud pada ayat
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(3), Pemerintah dapat memutuskan perlu atau tidaknya persetujuan Dewan

Perwakilan Rakyat. (5) Dewan Perwakilan Rakyat memberikan persetujuan atau
penolakan terhadap perjanjian Perdagangan internasional sebagaimana dimaksud
pada ayat (3) huruf a paling lama 1 (satu) kali masa sidang berikutnya. (6) Dalam hal
perjanjian Perdagangan internasional dapat membahayakan kepentingan nasional,
Dewan Perwakilan Rakyat menolak persetujuan perjanjian Perdagangan
internasional. (7) Peraturan Presiden mengenai pengesahan perjanjian Perdagangan
internasional sebagaimana dimaksud pada ayat (3) huruf b diberitahukan kepada
Dewan Perwakilan Rakyat. (Hukum Online, 2014)
Pasal 85 27 / 59 (1) Pemerintah dengan persetujuan Dewan Perwakilan Rakyat
dapat meninjau kembali dan membatalkan perjanjian Perdagangan internasional yang
persetujuannya dilakukan dengan undang-undang berdasarkan pertimbangan
kepentingan nasional. (2) Pemerintah dapat meninjau kembali dan membatalkan
perjanjian Perdagangan internasional yang pengesahannya dilakukan dengan
Peraturan Presiden berdasarkan pertimbangan kepentingan nasional. (3) Ketentuan
lebih lanjut mengenai tata cara peninjauan kembali dan pembatalan perjanjian
Perdagangan internasional sebagaimana dimaksud pada ayat (1) dan ayat (2) diatur
dalam Peraturan Pemerintah.
Pasal 86 (1) Dalam melakukan perundingan perjanjian Perdagangan
ainternasional, Pemerintah dapat membentuk tim perunding yang bertugas
mempersiapkan dan melakukan perundingan. (2) Ketentuan mengenai pembentukan
tim perunding sebagaimana dimaksud pada ayat (1) diatur dalam Peraturan Presiden.
(Hukum Online, 2014)
Pasal 87 (1) Pemerintah dapat memberikan preferensi Perdagangan secara
unilateral kepada negara kurang berkembang dengan tetap mengutamakan
kepentingan nasional. (2) Ketentuan mengenai tata cara pemberian preferensi diatur
dengan atau berdasarkan Peraturan Presiden. (Hukum Online, 2014)

Figure 3: International Treading

Source: (Discover and Invest, 2016)

II.2.2. EXPORT AND IMPORT
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An import is a good brought into a jurisdiction, especially across a national

border, from an external source. The party bringing in the good is called an importer.
An import in the receiving country is an export from the sending country. Importation
and exportation are the defining financial transactions of international trade
(Wikipedia, 2016).

An export is a function of international trade whereby goods produced in one

country are shipped to another country for future sale or trade. The sale of such goods
adds to the producing nation's gross output. If used for trade, exports are exchanged
for other products or services in other countries (Investopedia, 2016).

II.2.3. STOCK
Stock is a share in the ownership of a company. Stock represents a claim on
the company's assets and earnings. As you acquire more stock, your ownership stake
in the company becomes greater. Whether you say shares, equity, or stock, it all
means the same thing (Investopedia, 2016).

A stock is represented by a stock certificate. This is a fancy piece of paper

that is proof of your ownership. In today's computer age, you won't actually get to see
this document because your brokerage keeps these records electronically, which is
also known as holding shares "in street name". This is done to make the shares easier
to trade. In the past, when a person wanted to sell his or her shares, that person
physically took the certificates down to the brokerage. Now, trading with a click of
the mouse or a phone call makes life easier for everybody (Investopedia, 2016).

Stock shows a portion of ownership in a corporation. By publishing the stock, it

means you sell a portion of company’s ownership to the public, so the company will
receive fresh funds in order to expand or operate the company. Stock is also risky,
because the price movement is rapid. In Indonesia, the stocks transaction happens in
Bursa Efek Jakarta and Bursa Efek Surabaya, Indonesia Stock Exchange is an
incorporation of BEJ and BES. Stock gives benefits to the company:
- Capital gain: deviation of purchase price and sell price.
- Dividend: the companies divide their profits up among shareholders.

Figure 4: Indonesian Stock

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Source: (Howard, 2016)

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Figure 5: Indonesian Stocks – Return

Source: (Howard, 2016)

II.2.4. COMMON STOCK

Common stock is the most common type of stock that is issued by many
companies. The owner of the stock has the right to receive a portion of the income or
dividend from the company. It also means the owner has the right to bear the risk.
There are some rights and powers of the common stock (Palmiter, 2004):
 The right to receive the dividend, if authorized by the board of directors.
 The right to receive consideration
 The right to vote to elect directors and to approve fundamental transactions
 The right to receive a proportionate distribution of assets on corporate
liquidation
 The power to sell the stock
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Figure 6: Common Stock

Source: (Shodiqin, 2014)

The bigger the percentage of stock that we have, then the bigger our voting
rights to control the operation of the company. Usually, the stockholder has limited
liability, means, if the company bankrupt, a maximal loss that is borne by the
stockholder is as big as the investment on the stock. Common stock has the potential
for profits through capital gains.

II.2.5.PREFERRED STOCK
Preferred stock’s holder will have more rights than common stock. The
stockholder will receive the dividend in the beginning and also have bigger voting
rights more than common stock, for example in voting directors so the board of
management will try to pay the due dividend payment. These are general
characteristics of preferred stock (Johnson, 2016):
 The Shareholders may have may not have voting rights
 Adjustable Rates
 Convertible Preferred Stock
 Participating Preferred Stock
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Figure 7: Preferred Stock

Source: (Shodiqin, 2014)

III. CONCLUSION
Legal system is considered into three types, the first one is
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