What is Legal Framework?
The legal framework is a legal framework, which is a process of forming laws in all activities that occur in a country. The law will later function as a legal basis that must be fulfilled and obeyed by all parties as stated in the law.
In the concept of a rule of law, the law is the first reference when starting an activity or development and is then used as a reference again if there are problems.
Legal Framework in Business
If it is related to business, the legal framework can be interpreted as a law that functions as a legal umbrella in every aspect of business activity that has the hope of being able to trigger, encourage and even create conducive business conditions that can ultimately benefit the country’s economy as a whole.
Business activities are not only about buying and selling or production and distribution activities, but much more than that, involving many parties, a lot of money, a lot of goods and very likely to cause unfair competition. Because of the complexity of a business, it is clear that the rule of law cannot be ruled out. The government as the holder of the highest authority must have a framework in which to take business development in the future and this legal framework is one of the directions in making every policy in the form of regulation.
Of course, in creating a legal framework, the government should not act alone, even though cooperating with the DPR is not enough at all. However, in making laws, it is obligatory to involve all interested parties, starting from investors, entrepreneurs, and even consumers.
By listening to the needs of all parties, the laws that will be created can be understood, accepted and implemented by all parties related to business.
Example of a Business Legal Framework
The development of the e-commerce industry in Indonesia is very fast, but it turns out that the rules are still very limited, even though there are many that are not understood by all parties, maybe they really don’t understand or because of a lack of socialization.
In the middle of 2021, for example, many cases occurred, especially those related to the COD or Cash On Delivery system where the buyer received goods that were far from the seller’s description but the courier was the target of anger. Whereas in the COD system, the buyer should have understood that the role of the courier is only as an introduction, if you are afraid that the goods will not fit then do the documentation carefully starting from when the courier is still there, opening the goods witnessed by the courier and when the goods do not match the order will process a refund, it is clear that the courier even before the package is opened must have been paid for.
Well, apparently not in this case there is no firm legal action. For example, what is the penalty received if the seller is proven to have committed fraud or maybe accidentally mispacked the goods, what are the sanctions for buyers who refuse to pay COD, what are the sanctions if it is later proven that the courier himself committed the embezzlement.
In addition to the COD system, for example, what are the legal steps for illegal online loans, where until now the actions taken by the government have only been to block sites or ask for the removal of applications from the Playstore. This means that the legal framework in the business sector in Indonesia does not cover all aspects, something that is actually reasonable considering Indonesia is a developing country where e-commerce is still new.
Forex Broker Legal Framework
Forex brokering is also a field of business that cannot be taken lightly. The development of retail traders today is very fast but unfortunately the legal framework in Indonesia is still very weak.
A real example is why many Indonesian traders make deposits at foreign brokers? What’s wrong with the condition of domestic brokers? Why do traders trust countries in the middle of nowhere like Belize, Saint Vincent and the Grenadies to Panama compared to Indonesia, which has a much better economy?
It turns out that this is because the current legal umbrella is not in favor of the trader but the broker. Whereas the government’s motto is to use a domestic broker whose legal basis is clearer and provides more protection. Indeed the law is clear, indeed there is protection but for whom? Is it for traders? No.
In fact, many cases have been heard that local brokers cheat, such as by making the trading terminal offline, even traders lose billions. How is the case going?
Then don’t forget that overseas brokers can use cent accounts, spreads are low, commissions don’t even exist, leverage is up to thousands of times and there are deposits via e-currency up to via IB. Meanwhile, at local brokers, there are only standard accounts, the leverage is small, the spread is more than 3 times that of foreign brokers, it is already large, plus the commission is the same in value. When making a withdrawal, it is limited to 12 noon after that time, it will only be processed the next day, not to mention there is tax.
Uses of Legal Framework in Economic Aspect
Every rule is made not without purpose. With clear rules, every party carrying out economic activities will comply with the applicable rules. The existence of this rule is expected to be able to make a country’s economic activities run smoothly and at least the economic gap between large capital owners and small capital owners.
The rule of law framework in the economy also benefits the available resources. If, there are no rules that impose restrictions on the use of resources and waste management, many parties will overstep their boundaries. This is like draining natural resources arbitrarily or throwing production waste into nature which triggers environmental damage in the future.
Not only that, the legal framework in the economy also focuses on individual and industrial copyright assets. A person’s copyright is very important, both the owner and the state. Copyrights that are used without paying royalties to their owners will indirectly make the state also lose one of the sources of tax from royalty income.
With a good legal framework in the business world in a country, then:
Business activities will run in a conducive manner because each party will try to carry out their respective obligations and rights.
There is law enforcement for those who violate the rules.
Creating a conducive and competitive business situation.
There is no gray area that certain parties can abuse.
Giving a sense of security to business people, both domestic and foreign investors.
In building a good legal framework, competent parties are needed to do so, in this case the state through the relevant departments. Competent parties in the preparation of a legal framework will make the state have clear legal certainty.
