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Editorial

Overview

The downturn in the global commodities market has meant that there have been relatively few developments in the natural resources space in Indonesia. However, the government’s commitment to adding 35GW of new power production by 2019 and overhaul the country’s infrastructure is likely to result in more work around high-speed railways, roads and energy projects. Foreign investors have traditionally faced many hurdles in the Indonesian market, from a history of nationalism with regards to corporate ownership to concerns about the relatively unstable domestic currency. President Jokowi, however, is gradually easing some of the restrictions that have in the past made foreign investors hesitate. The country may also see a surge in domestic investment following the 2016 Tax Amnesty policy, which seeks to bring Indonesian money back into the country and incentivise domestic investment. Indonesia’s nascent telecoms sector is a significant target for investors and it has seen a lot of market consolidation. The Indonesian legal market is a closed one but some international firms have a presence in the country via associations including Hadiputranto, Hadinoto & Partners, a member firm of Baker & McKenzie; Ginting & Reksodiputro in association with Allen & Overy; Hiswara Bunjamin & Tandjung in association with Herbert Smith Freehills; Linda Widyati & Partners in association with Clifford Chance; and Ashurst LLP’s tie up with Oentoeng Suria & Partners.

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