Message from the Board

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Dear members, October 2003<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> LGS Online has been launched in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />September 27, 2003. You now have unlimited access to our non-paid members only services. The unpaid services include: (a) LGS Newsletters that update you regularly in summary form the most recent laws and regulations promulgated by the law makers, so that you are well aware of the consequences of new policies to your business; (b) Indonesia on Review, an in depth analysis on economic, business, political and legal issues updated every month, (c) news and opportunities, a feature that tells you relevant economic, business and finance issues which may present opportunities for your business, and (d) some other useful guides and information. Our paid-services that are already online cover the LGS legal database which consist of : (a) more than 4,000 laws and regulations in the Indonesian language, and about 20 of the most important business-related laws and regulations in English, updated continuously, (b) LGS legal memoranda on investment, corporate, capital markets and labor issues that explain detailed legal issues, regulatory framework and solutions to the issues, which are updated almost on a daily basis, (c) LGS forms and agreements you would need for your daily operations, in the areas of investment, corporate, capital markets and labor, updated daily, (d) LGS boilerplate provisions, the most common provisions of business contracts that you could easily implant into your contracts, continuously updated, and (e) LGS Litigation Reports, which gives you in depth analysis on most recent court decisions that may affect your business, also continuously updated. You may think: how is all that LGS database going to help me in my daily activities as a high level executive? More than you imagine, judging from your present relations with your lawyers and your costs of paying legal fees. And the beauty of which is you do it directly, ask your secretary to do it, or if you are not sure, ask your in-house counsel. No sweat required and it costs you peanuts. Let me give some examples. You are in a board meeting room, and there is a request to hold a board of directors meeting to approve an urgent material transaction. The number of your board members present is not sufficient to reach the required quorum pursuant to the articles of association of your company. The next thing you could do is browse www.lgsonline.com, and download from LGS Legal Database – forms and agreements, a Power of Attorney to Attend and Vote in a Board of Directors Meeting, fill in some applicable information, email it to your director who is not present, and ask him to sign or electronically sign it, and fax or email back to you in a matter of minutes, and send the originals as soon as possible. Then you are worried about how to minute the resolutions of the board meeting. Again, you download a form of the Minutes of the Meeting of the Board of Directors from www.lgsonline.com legal database, fill in the required information, and execute it. As the transaction is material, it requires an approval from the commissioners of your company. Piece of cake: you download again the form of the Approval of the Commissioner, fill in some information, have it signed by your commissioners. Or perhaps it requires approval from your shareholders meeting. Again, you could download the Power of Attorney to Attend and Vote in the Extraordinary General Meeting of Shareholders, and the Minutes of the Extraordinary General Meeting of Shareholders suitable for the agenda of the meeting, and have them executed. So far, you have already downloaded 5 documents from our legal database. It is an urgent transaction worth millions of US Dollars. You might be curious how much does it cost you. Well, 5 documents from our legal database would cost you US$ 500.00, and as an LGS client you are still entitled to 25% until December 31, 2003, so your total cost is only US$ 400.00 plus applicable value added tax. You could imagine that if you ask your lawyers to do it, it takes days, and costs you at least 5 times of our cost. I could give you another example. You are in New York or London or Tokyo, in the middle of negotiating a joint venture agreement with your partner-to-be, surrounded by their sophisticated lawyers. I do not have to explain the costs you have to pay if you have to bring along your lawyers with you. In the negotiation, the foreign prospective partner might ask you the legality of investing in Indonesia, and the issues they may have to encounter for a specific type of investment in a specific industry. They will ask you some questions concerning the licensing procedure, and how to establish a joint venture company in Indonesia. Their lawyers may specifically ask you what are the rights, responsibilities and liabilities of shareholders, commissioners and directors in an Indonesian joint venture company. They could further ask you how to raise money in Indonesia from the public, and go on asking you about labor conditions, employment issues, negotiating with labor unions, etc. They may also question you on how to acquire land, import equipment and duties attached thereto. They could further deepen their questions by exploring environmental issues that may have to be dealt with by the joint venture company, consumer protection, antirust issues, and available insurances, bank or lease financing, tax treatment, double tax treaty, etc. The lawyers might even ask you if you brought along a text of the Company Law, the Tax Law, the Foreign Investment Law, and such other related laws and regulations. All the answers would normally take days to answer. Again, you click www.lgsonline.com, and download from our LGS Legal Database, legal memoranda that cover those issues, the forms of investment application, articles of association, joint venture agreements, and the related laws and regulations. They are all answered in a matter of minutes, as the legal memoranda were carefully designed to answer the most frequent questions on those investment, corporate, corporate finance and labor issues. As for the costs, instead of paying unnecessary expensive billings, your budget is saved by the low cost LGS Legal Database. We charge US$ 50.00 for each memorandum, and US$ 20.00 for each law or regulation in English, and US$ 10.00 for law or regulation in Indonesian language. Those are still reduced with your member discount of 25% until December 31, 2003. Dear members. Developing our LGS Database is an enormous effort; it is time consuming and requires commitment and dedication. The materials are scattered around in different sources which sometimes are not easily accessible, and keeping them updated needs the determination to focus on the relevant issues, day-by-day, even in the space of a few hours. LGS Online has hired a fully-dedicated team to serve you, and in cooperation with LGS law firm, LGS Online is committed to keep you on top of all developments of commercial and commercially-related laws and law practice in Indonesia. Should you have any comments or questions or recommendation on our services, please do not hesitate to contact me at surowidjojo@lgsonline.com. Thank you for all your continuing supports, and I wish you all the best. Arief Surowidjojo CEO

Message from the Board

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[Last update: 2003-10-24 10:46:34]

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