Here’s the case. John, who lives in a rural area in East Kalimantan, is facing a land dispute. However, from a legal perspective, he is unsure about the exact nature of his problem.
There’s another case. Let’s call it PT Angin Ribut, a multinational company headquartered in Jakarta. This company has many employees on its legal team and is currently dealing with several legal issues. Despite having a large legal team, Angin Ribut still needs to hire external lawyers.
Another example is the law firm XYZ, which handles a variety of cases. Its clients range from individuals to corporations, and XYZ has around 80 lawyers. Does XYZ really need so many lawyers?
These were the topics discussed by Richard Sianturi, Founder & CEO of PT Solusi Hukum Merata, also known as Korner, during a guest lecture on Monday, June 24, 2024. The guest lecture, titled How Legal Technology Transforms Business and Legal Sectors, was organized by the Law Study Study Program, Faculty of Humanities, President University (Presuniv), and took place at the Fabrication Laboratory, President University Convention Center, Jl. H. Usmar Ismail, Kota Jababeka, Cikarang. Dr. Ir. Robert P. Radjagoekgoek, S.Sos, SH, MH, Head of the Legal Study Program was present at the guest lecture and gave opening remarks.
Rising Legal Costs
Those were some illustrations of legal cases. So, what kinds of legal cases actually occur in society, and how do people resolve their legal issues?
Citing a 2019 survey by the Indonesia Judicial Research Society (IJRS) involving 2,040 respondents, Richard explained the types of legal cases that occur in our society. Criminal cases ranked highest at 43%, followed by family or child-related disputes at 32%, land and environmental disputes at 30%, housing disputes at 30%, health-related disputes at 21%, and security or other social issues at 17%. It’s worth noting that respondents could choose more than one option in this survey, which is why the total percentage exceeds 100%.
According to the same IJRS survey, 36% of respondents chose to use legal assistance to resolve their issues, while the remaining 64% did not. Why did they choose not to use legal assistance? The reasons were twofold: 60% of respondents feared the complicated legal process, and 39% were concerned that the results would not be satisfactory.
That’s what’s happening in society, at least according to the IJRS survey. What about legal issues in corporations?
Source: www.legaldive.com.
An article published on http://www.legaldive.com in June 2023 revealed that corporate legal costs increased by 29%, from $2.4 million to $3.1 million. If this amount is converted at an exchange rate of Rp16,500 per US dollar, it means that average legal spending rose from Rp39.6 billion to Rp51.15 billion. The most significant increase in legal spending occurred in large companies with revenues above $20 billion (Rp330 trillion), where average legal costs rose by 57%, from $50.8 million to $80 million.
Another note from the survey is that 53% of all legal costs are spent on internal legal matters, while the remaining 47% are used to pay for external legal services.
The Role of Technology
Can technology help reduce legal costs? In the legal world, technology is used in several ways. First, to manage various documents by converting them from print to digital formats. There are various applications for this, such as DocuSign, Contractbook, Doxflow, iManage, and others. Managing documents this way offers many benefits, including easier searchability, increased security, and cost savings. Companies at least do not need to spend on paper and require less space for document storage.
Second, technology can also be used to provide legal services. For example, AI-based chatbot applications can facilitate legal question-and-answer services for users. Such services are very helpful as they can be accessed quickly, anytime, and from anywhere.
Source: Korner.
Third, there are also legal research and analysis applications, such as lynn legal, InView, casetext, and even ChatGPT. These applications are certainly needed by companies or law firms.
There are several other applications related to legal services globally, including those for compliance and privacy, e-Discovery, legal front door platforms, e-billing, legal design, and workflow automation. According to Richard Susskind, “Automation is what most professionals have in mind when they think of the relevance of technology for their disciplines.” Susskind, a British author, public speaker, and advisor to international institutions and governments, emphasizes the importance of technology in professional fields.
The Future of Law Firms
Some of these applications are offered by Korner. According to its website, Korner is an open-access platform providing AI-based legal services. Their services include legal education and connecting clients with legal service providers.
Founded in 2020, Korner now serves users in 26 provinces in Indonesia, as well as clients from Malaysia and the United States. On his LinkedIn profile, Richard writes, “Korner’s vision is to become a company that encompasses the full legal ecosystem, from education to legal services, with technological innovation.” He adds, “In 2024, we aim to make legal services easier, more affordable, and more accessible.”
Korner currently offers two main services: Korner Academy and Korner Licensing. Korner Academy focuses on legal training through various classes and topics, with diverse speakers, some of which are conducted online.
Meanwhile, through Korner Licensing, users can find legal service providers related to licensing, such as for establishing PTs, CVs, and foundations, handling licensing documents, drafting and reviewing legal documents, and translation services.
Will Korner’s services and other similar services represent the future of law firms? Possibly! (JB Susetiyo, PR team. Photo: Damar Satriawan).
