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2023 Global Recession: What Should Business Actors Do?

The global recession is precipitated by a variety of factors, one of which is the conflict between Russia and Ukraine. Not only does it have impacts on macroeconomic stability, but global recession also has impacts on transactions and corporate actions, resulting in mass layoffs leading to the point where bankruptcies and debt restructuring occur.

In response to this issue, ADCO Law successfully hosted an online discussion forum entitled “ADCOTalks 2023: Thinking Outside Pandora’s Box” on November 29, 2022, inviting well-known Indonesian legal and business practitioners and those from the ASEAN Business Hub in Singapore. The discussion forum was divided into two sessions. The first session focused on the various challenges and effects of the global recession, including the dispute resolution, while the second session covered the scope of transactions and corporate actions in the midst of the global recession.

In the first session, we presented respected legal practitioners: 1). Alexandra Gerungan, Partner at ADCO Law, who delivered material on legal anticipation in connection with the risk of the global recession, particularly in Southeast Asia, 2). Morales Sundusing, Head of Manpower & Employment at ADCO Law, who gave an insightful session about the important manpower issues that business actors should be aware of, and 3). James Morrison, Partner at Peter & Kims, who explained the dispute resolution procedure at the Singapore International Arbitration Center (SIAC).

ADCO Talks - Pandora Box

“The global recession has the potential to have an impact on business activities in all industrial sectors e.g., reduced production volume, project completion delays, layoffs, and bankruptcy. This ADCOTalks is expected to assist business actors in mitigating and dealing with legal risks that may arise,” said Alexandra Gerungan, Partner at ADCO Law.

The discussion continued to the second session, moderated by Dendi Adisuryo, Partner at ADCO Law, where the first panelist, Alta Mahandara, Partner at ADCO Law, spoke about the trend of merger and acquisition transactions in the midst of a recession. Then, Marius Toime, Partner at K&L Gates, continued with the discussion on the impact of the recession on corporate transactions. The second session was closed with an explanation regarding financial and tax management for business actors, which was directly delivered by Roy Sibuea, Director of EY Indonesia.

“Commodity price increases have prompted a slew of corporate actions, including mergers and acquisitions, one of which is in the mining sector with the aim of business expansion and diversification. Despite the prediction of recession, the economy still grows positively. It is hoped that by hosting online forums like this, we as the support system for business actors can help them continue to expand and grow while adhering to the applicable laws and regulations,” Alta Mahandara concluded.

“The dialogue presented by the panelists at today’s ADCOTalks is very relevant to current issues,” said Boy Gemino Kaloserang, Group Legal Advisor of Pamapersada Nusantara and Director of Bhumi Jati Power.

ADCOTalks is a routine program regularly held every month, presenting ADCO Law’s legal counsels along with other experts and representatives from the government. In each online presentation, which lasts for one hour and thirty minutes, ADCOTalks consistently provides legal perspectives on various hot issues with the aim of enriching the insights of the audience, who are not only from legal backgrounds.

 

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About ADCO Law

ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.

By combining commercial sensibilities and legal expertise, ADCO Law assists clients to structure, organize, and implement their business ventures and investments, including structuring, financing, and securing investments, as well as establishing new foreign companies in Indonesia.

For further details, please contact:
Alvin Mediadi, Business Development Manager, Indonesia
+628 57 234 89625, alvin@adcolaw.com

Maulidza Oemar, Public Relations, Indonesia

+62 877-7528-1922, lidza.oemar@adcolaw.com