"The biggest risk is uncertainty," bemoans one general
counsel at an investment fund in Jakarta. "It used to be the
uncertainty of politics and economics but now it is judicial
uncertainty and corruption."
Doing business in Indonesia is no easy ride. From the dawn
of foreign investment when Indonesia was a dictatorship under
Suharto to its journey through the Asian Financial Crisis and
democracy, investing in Indonesia has been fraught with
difficulties not least understanding local law and local
Joel Hogarth, a partner at O'Melveny & Myers, has worked
in Indonesia for nearly 10 years. Here, he explains what
foreign investors need to know when putting their money into
Indonesia and analyses some of the challenges and
IFLR: How did you first come to work on deals in Indonesia?
Joel Hogarth: My first case in Indonesia was the Asia Pulp
& Paper (APP) restructuring in 2001. Although a very...