Working within Indonesia’s financial markets requires dealing with both the demands of structuring a framework for economic growth and the regulatory goals of establishing systemic order. In such a context, the role of legal advisors is to assist in providing a transaction structure to reflect the broad policy goals and the needs of the commercial parties as well as regulatory and compliance advisement with respect to Indonesian law. HPRP represents both domestic and overseas financial institutions including banks, securities companies, insurance companies, multi finance companies, etc. for these legal advisors.
Our Firm has represented both overseas and domestic lenders and borrowers in various financing, syndications, export and trade financing, etc. While most of the works have been for domestic and/or overseas project lenders, our Firm has also represented borrowers, suppliers and contractors and in multi finance transactions, various multi finance companies, and sometimes the lessees or borrowers, in factoring transactions, lease financing, venture capital transactions, etc. have been assisted for. Also, we engage in both factoring syndications and lease financing syndications. A method of financing which has appeared in Indonesia in recent years is that using Sharia or Islamic banking and our Firm is well known as a leader in legal services related to sharia-based transactions, including spin-offs of sharia business units and the establishment of sharia commercial banks, or sharia financing such as mudarabah muqayadah and qardh wal murabaha.
Indonesia’s capital markets are characterized by both a non-comprehensive regulatory framework governing market activities and by the rapid deregulation and liberalization presently taking place. With respect to overseas transactions, the different timing and practice requirements in the issue markets are important considerations. Finally, there must be knowledge of various tax considerations in certain tax-favorable jurisdictions. To this end, our Firm establishes this practice group to specifically focus on the legal services needs of our clients with respect to their finance and securities related activities in Indonesia. Our Firm represents both domestic and overseas financial institutions, including securities companies, banks, and insurance companies and has engaged in among others: debt issuances, including convertible bonds, floating rate issues, commercial paper, medium term notes; various linked return notes; equity issuances such as initial public offerings (IPO), right issue, tender offer process; the establishment of mutual funds in Jakarta and various Asian markets; and capital markets regulation and compliance advice. Most of the partners of our Firm are the registered Indonesian capital markets legal counsels qualified to issue OJK-accepted securities legal opinions.
HPRP has considerable experience of working with officials at all levels of central and local government and regulatory bodies such as the Ministry of Finance, Bank Indonesia (the Indonesian central bank), the Indonesian Financial Services Authority (OJK – Otoritas Jasa Keuangan replacing BAPEPAM-LK (the Indonesian capital market legal authority), and the IDX – the Indonesia’s Stock Exchanges (BEI – Bursa Efek Indonesia).
We classify our services in this practice into:
- Banking and Finance (including Sharia)
- Capital Market
- Private Wealth Service