Special Focus
Indonesia Annual Review 2012

Special Focus Archive

Ownership limit changes dilute investor enthusiasm

Indonesia’s banking sector has been drawing the attention of foreign banks, particularly those in Southeast Asia. The hope is that owning a stake in a local bank will reap huge dividends. But the Government’s constant reshuffling of bank ownership limits is testing investor patience

Leading banking and finance lawyers
Key finance deals
Financial services industry prepares for regulatory upheaval

From 2013 onwards, Indonesia’s banking and capital markets industries will both be regulated and supervised by a new, single institution. Although most stakeholders support the initiative, the transition is expected to be bumpy
Bond pricing benefits from debt rating upgrade

The decision by the rating agencies to upgrade Indonesia’s long term foreign currency and local currency rating has opened up a world of possibilities for funds only permitted to invest in investment grade securities
Industry eagerly anticipates new super-regulatory body

Mandiri Sekuritas’ president director Harry M Supoyo explains to Hon Ting Lau why the establishment of the Financial Services Authority is good for his investment bank and good for the industry
High hopes for Hong Kong tax treaty

The Indonesian tax authorities are hopeful that the forthcoming double taxation treaty with Hong Kong will facilitate a significant boost in investment from the Special Administrative Region. But it will require careful monitoring
Key ECM and DCM deals
Leading capital markets lawyers
Good governance vital to continued prosperity

Indonesia is enjoying its role as economic safe haven while other, more mature, economies undergo unwelcome market turbulence. But a prosperous future is not guaranteed, and the country must continue its fight against corruption if it wants to fulfill its potential
Mining with integrity

Petrosea’s head of corporate legal Meinar Kusumastuti tells Hon Ting Lau about her company’s long history of good corporate governance
Leading corporate governance lawyers
Leading regulatory & government lawyers
The devil is in the detail

As the Indonesian economy matures, and the country’s citizens become more aware of their rights, there has been a corresponding increase in disputes. With the local judicial system still not deemed by many investors to be a preferred option for resolving disputes, getting clauses right can be vital
From regional leader to global player

Much of the foreign investment targeted on Indonesia’s infrastructure sector emanates from countries in the region such as China, India and Japan. With the regional headquarters of many of these companies based in Singapore, the SIAC provides a convenient solution for the resolution of Indonesia-related disputes. But deputy chairman Cavinder Bull tells Hon Ting Lau that SIAC offers a lot more than just convenience
Leading dispute resolution lawyers
Churchill Mining versus Government of Indonesia

It has been suggested by some that the Government of Indonesia’s actions, in its legal battle with Churchill Mining, were in direct breach of the country’s obligations under a number of international investment treaties. Nonetheless, they serve as a useful lesson
Dispute resolution in Indonesia

By Tony Budidjaja, Budidjaja & Associates
Geothermal project feasibility under the microscope

Indonesia houses geothermal assets that could solve the country’s increasing energy needs, but there are practical difficulties in accessing this clean energy supply. The Government of Indonesia has launched a series of initiatives to address this dilemma
Mitigating geothermal risk

MedcoEnergi’s head of corporate counsel and general counsel Siendy Wisandana explains to Hon Ting Lau why her company assigns geothermal projects with a different risk profile
Mining industry claims divestment regulation lacks clarity

The Government of Indonesia’s latest mining divestment regulation has led to more questions than answers. With the uncertainty likely to discourage foreign investment, the Government is under pressure to provide some clarity
New mining law bans export of raw minerals

The Government of Indonesia’s decision to bring forward its proposed ban on the export of raw materials has left the country’s mining industry facing an uncertain future
Leading energy and natural resources lawyers
Successfully tapping undeveloped economic potential

By Brian Scott, Herbert Smith
One size doesn’t always fit all

Indonesia has a fairly extensive body of law designed to protect intellectual property rights. And yet, counterfeiting and piracy is widespread. Hon Ting Lau reports on efforts to tackle what is still viewed in Indonesia as a victimless crime
Tackling counterfeiters in Indonesia

Peter Ollier talks with Widyaretna Buenastuti, chairman of the Indonesian Anti-Counterfeiting Society, about counterfeiting, consumers and raising awareness
ISPs to start blocking illegal music downloads

An ISP industry group will begin to block sites that allow users to illegally download music in an attempt to stem what some call a cultural lack of understanding of IP in Indonesia. Peter Leung reports
The lessons of litigating well-known marks in Indonesia

Kao Corporation’s fight over the Biore mark is a textbook example of the challenges brand owners face in Indonesia, lawyers say. Peter Leung reports
Leading intellectual property and TMT lawyers
Balancing act

The Government of Indonesia is having to address the perennial problem of doing all that it can to encourage foreign investment, while at the same time protecting the country’s domestic industries
Government intervention hinders competition law enforcement

Indonesia’s competition agency, the KPPU, is tasked with preventing anti-competitive practices in the country. But it is hamstrung by a lack of funds, limited powers, and a government that keeps intervening
Leading M&A lawyers
Mandala Airlines

Ashley Lee analyses the novel roles played by Indonesian-focused private equity firm Saratoga Group and Singapore-listed Tiger Group in the restructuring of Mandala Airlines, and what counsel needed to do to make the regulators comfortable with the deal
Key M&A deals
Market Data
Structuring Indonesian M&A transactions

By Joel Hogarth, O’Melveny & Myers
Making hay while the sun shines

With the prospect of numerous growth industries and healthy returns on investment, the world’s most prominent private equity firms are increasingly active in Indonesia. But there is an Indonesian approach to such investment, and international investors are advised to take note
A matter of disclosure

Managing director and co-head of Asia at global alternative investment firm Paul Capital, Jason Sambanju, tells Hon Ting Lau that the private equity industry in Asia would benefit from more firms adhering to standardised reporting templates
Investors pressure fund managers over disclosure

Private equity firms are often portrayed as firms shrouded in secrecy that raise large sums of money to conduct deals in private. Often closely guarded about their operations and the deals on which they act, they are now under pressure to follow the rest of the financial services industry in becoming more transparent
Key private equity deals
Regulatory framework for private equity investing in Indonesia

By Kuntum Apriella Irdam, Melli Darsa & Co
Initiatives provide timely boost for private investment

Indonesia’s stop-start infrastructure programme has traditionally been hamstrung by a combination of political and contractual risk, often the result of corruption. But a series of initiatives by the Government of Indonesia may now move many of these projects forward
Leading project finance lawyers
Key project finance deals
A new hope or false dawn

The Land Procurement Law was designed to facilitate the compulsory acquisition of land for those projects deemed to be in the public interest. But will it provide the boost needed to accelerate Indonesia’s infrastructure programme?
Acquiring land for infrastructure development in Indonesia

By Hanim Hamzah and Evi Pasaribu, Roosdiono & Partners

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