Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Ali Salmande, Robert Sidauruk
Over the last few years Indonesia has become a market that has drawn increasing attention from international law firms for a number of reasons. These include the much touted vast reserves of natural resources, a strong and growing middle class, and a not-so-strict investment policy are some of the reasons why foreign law firms want to do business here.
Despite these positives, prospective foreign investors and lawyers are increasingly concerned about their businesses due to the ever present and at times unbalanced nationalism that in the last few weeks has again more openly manifest itself as it periodically does. Of particular concern is that Presidential candidates are using the nationalism issue as one of their main political strategies hoping to attract as many voters as possible and increase their chances in the July 9 election.
As a consequence of these nationalistic fervors, many prospective investors are postponing their investments into Indonesia and taking a wait and see approach.
“If I can make investment in August and May, why wouldn’t I wait until August then?” said Shamim Razavi, a senior lawyer at Norton Rose Fulbright, the foreign affiliates of Indonesian law firm Susandarini & Partners.
The ban on the export of raw materials and the export duty on mineral concentrates, as policy to enforce the “mandatory” establishment of smelters in Indonesia is also creating issues for investors.
Matthew Sheridian, a partner at Singapore-based law firm Sidley Austin, sees the export ban as an effort to realize economic nationalism and gradually raise the position of Indonesia.
“The export ban policy seems to try to say to investors that ‘you take something from Indonesia, and then sell it, without providing any additional value to Indonesia,” said Mr. Sheridian.
Mr. Sheridian further highlighted the profile of Joko Widodo, the Governor of Jakarta who is considered by many as the frontrunner in the election. Mr. Sheridian said that Jokowi—Joko Widodo’s nickname—gives the impression of being a pragmatic leader with a modern style of nationalism in the eyes of investors.
“He [Jokowi] is a practical kind of man and I think clients also have the same impression. He is surely the type of man who would not do anything that may harm the economy,” added Mr. Sheridian.
While considered the most popular candidate for the position, some parties still have doubts about Jokowi’s economic plans. Joel Hogarth, partner at O’Melveny & Myers, argues than most of Jokowi’s economic platform is still unclear. Based on his public speeches and his political party, Mr. Hogarth believes that Jokowi tends to have his own style of nationalism.
“I think he [Jokowi] is a person who strongly believes natural resource reserves in Indonesia belong to Indonesia,” says Mr. Hogarth.
(hot/kc)
Ali Salmande, Robert Sidauruk
Over the last few years Indonesia has become a market that has drawn increasing attention from international law firms for a number of reasons. These include the much touted vast reserves of natural resources, a strong and growing middle class, and a not-so-strict investment policy are some of the reasons why foreign law firms want to do business here.
Despite these positives, prospective foreign investors and lawyers are increasingly concerned about their businesses due to the ever present and at times unbalanced nationalism that in the last few weeks has again more openly manifest itself as it periodically does. Of particular concern is that Presidential candidates are using the nationalism issue as one of their main political strategies hoping to attract as many voters as possible and increase their chances in the July 9 election.
As a consequence of these nationalistic fervors, many prospective investors are postponing their investments into Indonesia and taking a wait and see approach.
“If I can make investment in August and May, why wouldn’t I wait until August then?” said Shamim Razavi, a senior lawyer at Norton Rose Fulbright, the foreign affiliates of Indonesian law firm Susandarini & Partners.
The ban on the export of raw materials and the export duty on mineral concentrates, as policy to enforce the “mandatory” establishment of smelters in Indonesia is also creating issues for investors.
Matthew Sheridian, a partner at Singapore-based law firm Sidley Austin, sees the export ban as an effort to realize economic nationalism and gradually raise the position of Indonesia.
“The export ban policy seems to try to say to investors that ‘you take something from Indonesia, and then sell it, without providing any additional value to Indonesia,” said Mr. Sheridian.
Mr. Sheridian further highlighted the profile of Joko Widodo, the Governor of Jakarta who is considered by many as the frontrunner in the election. Mr. Sheridian said that Jokowi—Joko Widodo’s nickname—gives the impression of being a pragmatic leader with a modern style of nationalism in the eyes of investors.
“He [Jokowi] is a practical kind of man and I think clients also have the same impression. He is surely the type of man who would not do anything that may harm the economy,” added Mr. Sheridian.
While considered the most popular candidate for the position, some parties still have doubts about Jokowi’s economic plans. Joel Hogarth, partner at O’Melveny & Myers, argues than most of Jokowi’s economic platform is still unclear. Based on his public speeches and his political party, Mr. Hogarth believes that Jokowi tends to have his own style of nationalism.
“I think he [Jokowi] is a person who strongly believes natural resource reserves in Indonesia belong to Indonesia,” says Mr. Hogarth.
(hot/kc)