Population: 241,973,879

Economy Overview:

Indonesia, a vast polyglot nation, has restored financial stability and pursued sober fiscal policies since the Asian financial crisis, but many economic development problems remain, including high unemployment, a fragile banking sector, endemic corruption, inadequate infrastructure, a poor investment climate, and unequal resource distribution among regions. Indonesia became a net oil importer in 2004 due to declining production and lack of new exploration investment. As a result, Jakarta is not reaping the benefits of high world oil prices, and the cost of subsidizing domestic fuel prices has placed an increasing strain on the budget. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth. In late December 2004, a major tsunami took nearly 127,000 lives, left more than 93,000 missing and nearly 441,000 displaced, and destroyed $4.5 to $5.0 billion worth of property.

General Business Practices.

a) The official language of Indonesia is the Indonesian language. It is used in both commercial transactions and all legal proceedings.
b) The legal monetary unit in Indonesia is the Rupiah. However, it is normal practice to use United States dollars in International commercial transactions. At the current rate of exchange, eight thousand Rupiah equals one U.S. dollar which has been known to rapidly fluctuate within a short period of time at various times during the last two years making collections difficult when exchange rate becomes unstable.
c) For an out-of-court settlement of debts there is no specific professional etiquette to follow. If court proceedings are initiated, all invoices and documents edited in a foreign language must be translated by a National Public Translator prior to filing a lawsuit in the Courts. Contracts may, however, employ an Internationally recognized National Arbitration Board as an alternative to the Indonesian court system for resolution of contract differences.



Collections

A. Background

1. There is no information about the volume of collections performed in Indonesia.
2. Out-of-court proceedings for the collections of debts can be carried out by any person. It is optional to hire a lawyer to conduct pre-judicial proceedings. However, if court proceedings are initiated, it is mandatory to secure the services of a lawyer.
3. Collection proceedings are performed for both consumer and commercial accounts.

B. Description of any licensing or bonding requirements applicable to collection lawyers or agents.

1. The extra-judicial proceedings for collecting overdue accounts do not require any special authorization.
2. If court proceedings are initiated it is mandatory to secure the services of a lawyer registered in the jurisdiction where the debtor is domiciled.

C. General Procedures.

1. It is general practice to first find whether the debtor?s address and telephone is still correct. Then contact the debtor by notification letter and phone to inform him that we have been commissioned by the creditor to reach a payment agreement and asking him to contact our office to discuss the matter personally. If after several contact by phone the debtor still fails to respond, we will send our field team to obtain debtor?s response and intentions. Field teams are prohibited by company policy from displaying any form of obvious or subtle physical threat involved with collections. After 90 days, if no positive debtor response has been received, then the case is recommended for delivery to a supporting law firm.
2. A lawyer can send him a notification letter summoning the debtor to settle the<