IR Global, the world’s largest exclusive network of advisory firms is delighted to introduce Ary Zulfikar of azp Legal Consultants. Ary has joined IR as our exclusive Mergers & Acquisitions member in Indonesia.
Before 1997, Indonesia was one of the Asian Tigers, a promising country. Conductive business environment generated extensive growth in both in domestic as well as foreign investment, reaching the peak of IDR 119.9 trillion and IDR 39.9 trillion in the year 1997 alone. Indonesian economy flourished, portrayed by stable inflation rate, the opening of many new banks and other positive economic indicators.
However, when the economic chrisis hit Asia in the third quarter of 1997, Indoensia was one of the countries most severely affected. By the beginning of 1998, the Indonesian economy was in chaos, the exchange rate plunged from IDR 2,500 to IDR 15,000 – 17,000 per US Dollar, the inflation rate ranged between 20% and 60%, and interest rates spiked as well, which resulted in negative economic growth up to minus 13.7% and plummeting IHSG level. Such conditions created a systematic crisis and instability. Many companies and institutions ceased operating or became insolvent due to their inability to pay their foreign exchange debts, which affects financial institutions, including the collapse of many banks, resulting the need for financial re-structuring that involved various complex contracts and agreements in order to curb the escalation of the crisis.
If you have a requirement in this area, please get in touch with Ary directly or with the IR Global head office for an introduction.