In the rapidly evolving economic landscape of Indonesia, state enterprises find themselves managing an immense responsibility: overseeing an asset base exceeding half a trillion dollars. This challenging situation was the focal point of a significant conference, “The Restructuring, Insolvency, and Governance Conference 2023,” organized by AJ Capital with support from INSOL International and the Asian Development Bank (ADB). Hosted by Danareksa and PPA, the conference was held on November 1, 2023, at The Westin Jakarta, drawing industry leaders to delve into this complex issue.

The conference served as a critical meeting point for thought leaders and experts from diverse sectors, including law, finance, and academia. Together, they explored innovative strategies and shared insights on how to effectively overcome restructuring challenges, as well as tackling real-world complexities and offered practical solutions.

Among the prominent attendees was Martin Patrick Nagel, a partner at FKNK Law Firm. He contributed his expertise and insights on the distinct challenges faced in restructuring state entities compared to private sector firms. This segment delved into the specific requirements for restructuring and insolvency of state-owned enterprises (SOEs), taking into consideration the current macroeconomic risks and the rising trend in interest rates. It also examined the expectations of private lenders regarding state financial support and the significant concessions or discounts that private creditors are now seeking. His analysis shed light on the unique balancing act these SOEs must perform: managing their vast economic influence, which represented 56.2% of Indonesia’s GDP in 2019, while fulfilling their extensive public duties.

This challenge won’t be solved overnight. Nonetheless, FKNK Law Firm is dedicated to staying at the forefront of these issues, providing strategic legal guidance to navigate our clients through these complex and critical times.