The last few months have seen a flurry of activity from Hogan Lovells in Asia, particularly in Indonesia. Months after ending its association with Hermawan Juniarto, which lasted for more than three years, Hogan Lovells has teamed up with Dewi Negara Fachri & Partners (DNFP).
DNFP was established by founding partners Dewi Djarot and Fachri Fachrul. They have been joined by third partner: Chalid Heyder. The new collaboration was made possible through the efforts of Noor Meurling, who was previously head of corporate/M&A at Ashurst’s associated office in Jakarta. Meurling has since joined Hogan Lovells as a partner in its Singapore office.
Though fairly new, the Hogan Lovells-DNFP association has already yielded one tangible result: How to Indo, a mobile app designed to give companies easy access to legal guidance as they do business in Indonesia.
ALB talked to several partners from Hogan Lovells’ Singapore office to get a peek into its next steps in Indonesia, which the firm regards as “an attractive growth market with many opportunities in the commercial and legal sector”.
ALB: In what ways would you say is your new alliance with Dewi Negara Fachri & Partners different from your previous association with Hermawan Juniarto?
Stephanie Keen, Singapore office managing partner: Asia is a critical part of Hogan Lovells' strategy, and Indonesia is an important part of that. Hogan Lovells has a strong reputation for collaborating on award-winning transactions in Indonesia, and through our association with DNFP, we are now even better placed to help solve the toughest commercial issues in Indonesia and around the region.
Our relationship with Hermawan Juniarto was an entirely positive one. But we each felt that we had taken the relationship as far as we could, which is why we agreed a parting of the ways. We obviously learnt a lot about the Indonesian market from our association with them.
We chose DNFP because it is a new firm with respected and very experienced senior leaders who have an international mindset. We saw the potential for cooperation in supporting our global clients in Indonesia.
The association allows both firms to significantly expand our offering as well as gives DNFP access to Hogan Lovells' extensive global network. In terms of how the association will work, we will be in full compliance with the law and local regulatory authorities.
ALB: What kind of Indonesia work has been keeping your firm busy in the past year or so? Are there key areas you’ve been focusing on?
Noor Meurling, corporate: Amid the government’s efforts to rejuvenate Indonesia's economy, demand for financial and legal services in private equity, infrastructure financing and M&A has been robust. While the scope of work in Indonesia has historically focused on the energy, natural resources and infrastructure sectors, we will be working with DNFP also on banking, restructuring, corporate (PE and M&A) and dispute resolution.
Alex Wong, energy and infrastructure: The power and infrastructure sectors have been and will continue to be an active part of our work in Indonesia. In particular, we expect the deal flow in the power sector to increase significantly with a greater push from the government side to procure more projects and a continuing appetite from the investor side to participate.
ALB: What was the rationale behind developing the “How to Indo” app? How will it help clients?
Mark Cooper, corporate: The rationale behind it is to provide an innovative way to help businesses navigate the legal and regulatory landscape when doing business in Indonesia. It allows anyone doing or considering doing business in Indonesia to access relevant legal guidance in a digestible way.
Anyone with an Apple or Android tablet will be able to access key guides on what you need to know about doing business in Indonesia. From M&A and infrastructure transactions to financing arrangements, as well as restructuring and insolvency to managing a dispute, these guides cover the key legal issues in doing business in Indonesia.
ALB: How would describe your firm’s competitive edge in Indonesia at present? What are some of the things you are able to offer that other firms can’t?
Maurice Burke, litigation and arbitration: While attractive for investment, Indonesia is a challenging market for foreign multinationals. I have worked for about a decade with Chalid Heyder, the new DNFP disputes partner. Our combined experience in Indonesian disputes means clients who work with us gives them the benefit of a "shield" that brings together the best of local and international know-how.
ALB: What do the next year or two look like for Hogan Lovells in Indonesia? In what areas do you see growth and expansion?
Alexander McMyn, banking: I believe that the expertise that we can now bring to bear in Jakarta via our association with DNFP will result in our international client base increasingly turning to us as they consider Indonesia as an investment destination and need advice on issues they encounter there. We will inevitably see expansion in new finance and infrastructure work, but, given the strain in certain parts of the economy, it is very likely that our skills in restructuring, arbitration and disputes will be brought to bear.
Wong: Our association with DNFP will only strengthen our offering in the energy and infrastructure sectors, which we see as key growth areas. Our energy and infrastructure teams across Asia, particularly in Japan, Singapore and China, will work closely with DNFP to improve our client offering as Indonesia continues its outstanding development trajectory.
Kent Phillips, international arbitration: Clients looking at Indonesia now require a deeper understanding of the jurisdiction, which has its own unique challenges and opportunities. Certain sectors have been particularly active, with foreign engagement in the energy and transport infrastructure sectors. Experience suggests that these sectors, alongside oil and gas/resources, will continue to generate their share of arbitration work in Singapore.
