Having celebrated the beginning of 2011, we can draw a line under a period that has seen a number of significant developments in Indonesia's political and business arena, both positive, and those that should be viewed with caution. In the political sphere, we have seen the loss of such reformers as the former Minister of Finance, Sri Mulyani, who has left to serve as the Managing Director of the World Bank; and a dragged out and convoluted saga of the on-again, off-again prosecution of Bibit and Chandra, that continues to interfere with the operation of the Corruption Eradication Commission (KPK), one of the few law enforcement institutions that garners the respect of the public, even after the case being dropped by the AGO by means of a deponeering – with the Commision III of the House of Representatives persisting in its attempts to further pressure the two Commissioners.
On the business side, Indonesia has weathered the recent financial crisis with remarkable resiliency, and is now seeing significant foreign capital inflows as a result. Although concerns have been expressed regarding the over-dependence on foreign capital, and despite the calls from some quarters for broad capital controls to prevent economic disruption due to substantial inflows of foreign capital, Indonesia has the capacity to absorb the foreign investments, as long as they contribute to business development, and are not merely short-term debt plays.
As the largest economy in South-East Asia, Indonesia is also emerging as one of the fastest growing. This has resulted in the recent talk of inclusion in the BRIC grouping, and the expected upgrade of Indonesia's sovereign debt to investment grade. Such growth is spurred on by strong domestic consumption, high commodity prices, a hands-off approach to foreign investment, and interest rates that have remained comparatively low even in light of inflationary pressure.
Having recently celebrated our 26-year anniversary, LGS continues to closely follow the ongoing business, legislative and political developments. In which we often play critical role, such as our earlier work on Infrastructure Guarantees for Public Private Partnership projects, the first in Indonesia's history in this well-structured form. Additionally, we are proactively looking at, and preparing for the upcoming spinoffs of state enterprises that are slated to occur in the near future, creating a new area of business for LGS and lucrative investment opportunities for our clients.
LGS maintains its strong corporate law practice and commercial litigation, which has seen our founders remain active in major clients' assignments and guiding clients in strategic issues, and Partners Abdul Haris Muhammad Rum and Arisia Arundati Pusponegoro leading the firm in a number of substantial M&A and capital market transactions over the recent months. We have also continued to build on our unrivalled reputation in debt restructuring, as acknowledged by the Asian-Counsel naming LGS as Firm of the Year 2010 in the area of restructuring and insolvency. At the same time we have expanded into commercial arbitration and litigation, supported by a strong and determined team of lawyers, led by our founders, Partner Harjon Sinaga and Senior Lawyer Rofik Sungkar, who are rapidly solidifying LGS' reputation as a premier law firm in the area of commercial dispute resolution.
In internal matters, LGS is conducting a major upgrade of our IT infrastructure, as well as our law practice management tools, so as to allow our lawyers to make the utmost use of the latest technological developments. These developments will ensure that our internal operations are conducted in the most efficient manner possible, by providing our lawyers with the necessary tools and thereby allowing them to better serve our clients' needs. At the same time we continue to expand the coverage of LGS Online, which provides convenient access to the largest legal database available in Indonesia.
As always, we are also expanding our ranks, with the recent commencement of training of Batch VIII, and a further offer to the 5 top-ranked recent graduates from all departments to join the training programme in late February.
Standing at the end of a quarter-century of unparalleled legal advice, we would like to thank our clients for their continued patronage and all members of the LGS team for securing our position as the premier Indonesian law firm.
A New Cornerstone of Legal Services in Indonesia
Periodical Review of Indonesian Politics, Economy and Other Public Issues
LGS Newsletter on Various Legal and Business Issues
Government Officials and Prominent Business Actors in Indonesia
Important Addresses You Should Know