Liberalisation: opening legal market will bring investment

International pressure on Indonesia to open up its legal market was stepped up this week as the City Lord Mayor called on the Indonesian government to allow foreign lawyers to set up offices in the country.


David Brewer said a liberalised professional services market was key to attracting outside investment.


Following a three-day visit to Jakarta with a delegation that included the Law Society's head of international Alison Hook, Mr Brewer said: 'Indonesia needs foreign investment to develop its infrastructure - and ready access to foreign law firms would be a great aid to that... Big investors want to bring their own legal counsel, and London's experience is that liberalisation of professional legal services brings prosperity.'


The Lord Mayor said the Law Society's recently formed links with the new Indonesian Bar Association and the assistance it has provided in developing robust professional standards were a welcome step, especially as self-regulation of the legal industry is 'still in its infancy' in Indonesia.


World Bank country director for Indonesia Andrew Steer, who was in the delegation, said a strong legal structure that was fully transparent and professional was 'fundamental' to Indonesia's plans for reform and future success.


Indonesia has a population of 220 million and plans to spend $150 billion (£80 billion) on infrastructure over the next five years, working with foreign investors. There are approximately 16,000 domestic lawyers in the country, with only around five firms with more than eight partners. Only a small number of foreign lawyers act as consultants in the country.