 Legal Market and the specialised market

Legal market overview in Indonesia :

Solid economic growth combined with low inflation has, in recent years, led to an increase in
business in Indonesia, which is only growing more attractive to international investors and
businesses. The trickle-down effect has resulted in a greater need for legal and regulatory
know-how and lawyers who are equipped to handle business issues and navigate a changing
market landscape. As a result, opportunities for firms and lawyers have continued to grow.

Legal market is a broad term that refers to advertising and other practices, such as client
relations, public relations, networking, participation in professional organizations, etc. The
legal marketing definition generally includes business development activities and efforts to
win more clients, thus increasing revenue.

For the Indonesian legal market, foreign firms are not allowed to operate in the country so
that many global law firms cooperate with local firms in Jakarta. This includes Ginting &
Reksodiputro working with Allen & Overy, Hiswara Bunjamin & Tandjung working with
Herbert Smith Freehills, Hadiputranto, Hadinoto & Partners, member firm of Baker
McKenzie, Witara Cakra Advocates (WCA) in association with White & Case and Hanafiah
Ponggawa & Partners, associated with Dentons..

For the example of legal market and Practice area Indonesia :

Antitrust & competition , Banking and finance , Capital markets , Corporate M&A
(Merger and Acquisition) ,Dispute resolution, foreign firms, intellectual property, IT
and telecoms, labour and employment, Real estate, Tax. Restructuring and insolvency.

 The Main Players of Legal Market

- Hadiputranto, Hadinoto & Partners (HHP Law Firm)
a member firm of Baker McKenzie International, is widely recognised as one of
the leading law firms in Indonesia. Its lawyers provide sophisticated advice on
corporate and commercial transactions across a broad range of industries, and
have worked with some of the largest domestic and international corporations,
creating effective, industry-focused solutions for their transactions and
investments. The firm’s long presence on the ground in Indonesia has allowed it to
foster solid working relationships with Indonesian government agencies and
regulators and key industry players, and to bring the benefit of these relationships
to its clients is a value proposition which sets the firm apart from others.
- Assegaf Hamzah & Partners (AHP)
Assegaf Hamzah & Partners is a full-service law firm that was founded by Fikri
Assegaf and Chandra Hamzah in 2001. Since then, it has grown rapidly, gaining a
reputation for innovation, commercial acumen and for putting clients at the
forefront of all that it does. Currently with 19 partners and 100 associates, all of its
members have extensive experience representing blue-chip corporate clients,
high-net-worth individuals, government institutions and major public enterprises.
 In early 2014, the firm entered into a strategic alliance with Rajah & Tann, a
Singapore-based law firm that is now the largest in Southeast Asia, to establish a
common platform that includes offices or affiliates in Singapore, China, Thailand,
Lao PDR, Vietnam, Malaysia, Cambodia and Myanmar, as well as regional desks
focusing on Japan and South Asia. The tie-up significantly enhances the firm’s
capacity to provide top-class cross-border legal services and affords clients access
to an arsenal of more than 600 lawyers across the region.
- ABNR Counsellors at Law
ABNR is an equal opportunity firm, as shown by the fact that more than 40
percent of our partners are women. We are also committed to corporate social
responsibility (CSR) in such key areas as education, the environment and human
rights, as evidenced by the training and scholarships we offer to aspiring young
lawyers through the ABNR Foundation, and the pro bono services we provide to
non-governmental and civil society organizations.
- Hiswara Bunjamin & Tandjung (HBT)
Hiswara Bunjamin & Tandjung (HBT) was established in 2001 to meet the
growing demand in Indonesia for sophisticated legal expertise and resources of an
international standard. HBT is associated with leading international law firm
Herbert Smith Freehills, and has one of the closest and longest-standing
international associations in the Indonesian legal market, working together to
protect the interests of foreign corporations and financial institutions investing and
trading in Southeast Asia’s largest economy.
With 13 partners based in Jakarta, HBT is consistently recognised as one of the
leading commercial and corporate law firms in Indonesia. The Jakarta-based team
includes long-term international counsel seconded from Herbert Smith Freehills,
while Herbert Smith Freehills’ Singapore office includes Indonesian lawyers and
recognised Indonesia specialists.
- SSEK Legal Consultants
SSEK was formed in 1992 with a vision of creating a modern Indonesian law firm
capable of delivering legal services at the highest international standard. SSEK
has nearly three decades of experience helping multinationals and domestic
companies navigate Indonesia’s complex regulatory environment to minimize
risk, maximize investment and achieve their business goals.
SSEK’s experience enables us to anticipate and understand the government’s
position in ambiguous situations. Utilizing a significant network of contacts in
government departments and agencies, and our extensive computerized database
of Indonesian law, opinions, and work product, we are able to advise clients on
likely government policy positions when laws and regulations do not provide clear
guidance.

 Parameter for scoring (Awards and Accolades)

- Legal Business Online (legalbusinessonline.com)
Actually LBO didn’t share the parameter for how they scoring. But, after we
research their website, we have our opinion. First, LBO conduct their research.
And then, they analyzed the current situation. For example, from article ALB
M&A, they research based on analysis of pandemic situation and how that impact
the monetary issue.
- The Legal 100 (legal500.com)
 Based on John van der Luit (Editor) from The Legal 500 pasific, the paramater for
scoring the best law firm is conducted by research of each juridiction, canvassing
law firms, and contacting clients for feedback on the lawyer they instruct
- Chambers and Partners (chambers.com)
Their ranking parameter based on the in-depth-research by dedicated and
experienced team of researchers. The research methodology conducted by:
1. Making a submission
2. The research process
3. Chambers research inform the rankings
4. Result and awards
- IFLR (iflr.com)
Like LBO, IFLR also didn’t show how the parameter of scoring. But we think,
IFLR must be done research to decide the winner of award.
 Consumer
- Big Conglomerates
Considering that Indonesia's economic growth finally started to accelerate again in
the first half of 2016 after a multi-year slowdown, while the tax amnesty program
could bring home trillions of rupiah and the government is eager to push for
infrastructure development, Indonesia's property, retail, infrastructure sectors are
believed to be the sectors that should perform well in the years to come. Although
Indonesia's big conglomerates all have a diversified portfolio (and are therefore
stable), those that focus on consumer goods, property, retail, infrastructure,
construction and also healthcare (given the government's universal healthcare
program) are expected to be in the best position to grow strongly. Meanwhile,
those that have a focus on the agribusiness and mining sectors (and fields related
to mining and agribusiness such as heavy equipment) may still need some
patience.
Consumer goods remain the king among Indonesian sectors, particularly now the
economy seems to be on an improving trend thus giving a boost to people's
purchasing power. In Indonesia, household consumption accounts for about 55
percent of total economic growth (not surprising given the enormous size of the
Indonesian population), reflecting the importance of this sector toward the overall
economy. Although household consumption remained subdued in H1-2016, it
should improve in line with the overall economic rebound and lower interest rate
environment. All conglomerates benefit from their activities in the consumer
goods sector.
The state-owned enterprises (SOE) dominate the market capitalization on the Indonesia
Stock Exchange. On second position in the ranking of IDX Exchange we find the Astra
Group, Indonesia's largest privately-held conglomerate.
- SOEs
In Indonesia, state-owned enterprises play an important role in the national
economy. Their roles includes contributor for national economy growth, providing
goods or services which are not covered by private company, employment
provider, providing support guidance to small and medium businesses, and source
 of government revenue . The Ministry of State Owned Enterprises represents the
government's function as a shareholder of those companies. The central
government holds majority stakes in top listed companies such as Telekomunikasi
Indonesia (Telkom), Bank Rakyat Indonesia (BRI), Bank Mandiri, Perusahaan
Gas Negara (PGN), and Semen Indonesia. Also, the state-owned enterprises play a
crucial role in the economy of Indonesia, the biggest SOE being energy company
Pertamina.
State-Owned Enterprises (SOEs) in Indonesia has a strategic and primary role in
order to provide welfare for the society in the national economics context. This is
absolutely not a simple honor to the SOEs, but essentially an enormous task to
undergo. In conducting its business activities, SOEs, like other enterprises, are
borne creating profit or value to the corporation while performing public service
obligation simultaneously. SOE plays important role in order to attain welfare to
the society.
- MNCs (Multinational company)
A multinational company (MNC) is a large company that has subsidiaries in
various countries. Usually national companies come from developed countries and
open branches in developing countries. Because of the size of their power, it is not
uncommon for the existence of these multinational companies to affect the social
and political conditions of a country, and it can even impact global politics. When
entering various developing countries, these large companies usually work with
local companies and form Limited Liability Companies. However, the shares do
not belong to partner companies, or they are not traded on the local stock market.
Indonesia is also one of the third world countries that are the target of
multinational companies. Various well-known companies from the Americas and
Europe are spreading their wings to the country by establishing subsidiaries in
various industries ranging from food, fashion to automotive. Such as KFC,
Allianz, Danone, etc.
- Big Fis
Investment is a key driver of international economic integration and one of few
factors of country’s economic growth including Indonesia. With the right policy
framework, investment can provide financial stability, promote economic
development and enhance the well-being societies. Source of investment in
Indonesia is from Domestic Direct Investment (DDI) and Foreign Direct
Investment (FDI). FDI flows into Indonesia have grown and their base has been
expanding thanks to relisient economic growth, low government debt and prudent
fiscal management.
FDI growth is attributed to a set of economic policy packages that was
implemented by the Indonesian government over the last years, mainly focusing
on deregulation, law enforcement and business certainty, interest rate tax cuts for
exporters, energy tariffs cuts for labour-intensive industries, tax incentives for
investment in special economic zones and lowered tax rates on property acquired
by local real estate investment trusts. Moreover, Indonesia lowered the minimum
equity requirement for foreign investors and abolished the approval requirement
for several business transactions involving foreign investors. The policy of
liberisation has enabled Indonesia to rank 17th among the top 20 host economies.
Singapore remained the largest source of investment, followed by Japan, China
and Hong Kong.