Indonesia’s political and business environment has changed beyond

recognition in recent years. National institutions have been reshaped, while

greater freedom and democracy have initiated an increasingly assertive
media, and empowered civil and community groups and nongovernmental
organizations (NGOs). Indonesia’s political realities require companies to deal

APCO Worldwide in Indonesia with regional and local governments and groups that have assumed enormous
formal and informal powers since the advent of democracy. APCO Worldwide’s
Indonesia office helps clients face these challenges and prosper in an
ever-changing business environment.

APCO is a leading provider of integrated and comprehensive corporate advisory,

government relations and strategic communication consulting services. APCO’s
team has extensive experience and relationships with the media, government and
nongovernmental groups in Indonesia that can be leveraged on behalf of clients.
This local knowledge, combined with APCO’s global team of former elected
politicians, business leaders, ambassadors, journalists and government officials,
provides customized solutions to promote and protect clients’ interests in
Indonesia and overseas.

CORPORATE ADVISORY
Inward Indonesia investment
Entering the Indonesian market poses numerous questions and obstacles for overseas
firms. APCO’s team has extensive experience helping companies assess their options
and execute market entry strategies for the Indonesian market, including:
n Explaining the regulatory environment

n Identifying partners and distributors

n Conducting due diligence

n Structuring investments

n Negotiating wholly foreign-owned subsidiaries (WOS) and joint ventures

n Advising on mergers and acquisitions with Indonesian entities

Research and analysis

Thorough research underpins every successful and sustainable investment. APCO
conducts quantitative and qualitative market research and analysis; identifies and
prioritizes potential investment destinations; tracks industry policy, tax incentives and
regulation; and monitors government and nongovernmental opinion.

Strategy development
APCO employs its investment consulting experience for clients new to the market, and
those requiring a change of strategy, to evaluate business options, choose potential
investment partners, appraise competitor strategies, assess government attitudes and
suggest appropriate business structures.

Partner identification and due diligence

Business partnerships are often essential for foreign companies to operate in
Indonesia. APCO helps clients identify, profile and engage with business partners that

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best match their requirements. APCO authenticates the credentials of potential
partners, performs detailed analysis of their operations and financials, and consults
with third parties and government agencies.

Government approvals
Although the government approval process, necessary for the registration of almost
all new products, services and businesses, has become more predictable recently,
its opacity can still cause delay and frustration. APCO has close relationships with
approval authorities and other relevant state agencies that can help clients facilitate
the process.

Investment approvals and financial transactions

APCO’s team assists organizations in structuring and executing a wide-range of
complex transactions, including mergers and acquisitions, joint ventures, spin-offs and
corporate restructurings. APCO advises clients on conceptualizing and evaluating
options, calculating business valuations, conducting due diligence, structuring
contracts, strategizing the implementation of the chosen option and preparing the
documents required during the government approval process.

Investment negotiation
With a thorough knowledge of Indonesian foreign investment law, culture and the likely
negotiating strategies of potential Indonesian partners, APCO’s consultants help expedite
the negotiation process by finding ways to bring together the objectives of both sides.
APCO’s team also provides feedback on the objectives of local government and other
regulators to ensure support and facilitate the approval process.

Outward investment
APCO combines an understanding of the Indonesian business environment with
a global reach that enables Indonesian companies to access and succeed in the
world’s major markets.

Government Relations
Direct advocacy
In the current political climate, parliaments at the national, provincial and regency
levels in Indonesia have an influence over policy formation and implementation that
is measurably greater than was the case previously. Government support is a
particularly precious commodity in Indonesia. APCO formulates programs that
promote government understanding of clients’ interests and objectives, and lobbies
for enforcement standards that protect or advance clients’ products.

Managing the regulatory environment

The Indonesian legal system is complex and full of uncertainty. APCO helps clients
identify and understand forthcoming legislation and its ramifications. However, just as
important as written law is the political climate in which it is enforced. APCO delivers
regulatory analysis that enables clients to minimize risk and capitalize on opportunities.

Indirect advocacy
Vocal backing from thought leaders in the media, academia and third-party institutions
provides a credible channel through which to influence opinion. By aligning multiple
interest groups to publicly support a client’s agenda or interests, APCO is able to help

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clients validate their position while simultaneously insulating itself from criticism by, or
controversy among, stakeholders.

Economic, political and stakeholder research

Research is the backbone of every campaign. APCO conducts economic research on a
variety of issues at both micro- and macro-economic levels. APCO analyzes the impact
of legislation on a client’s business or investment intentions, conducts economic impact
studies and undertakes political risk analysis. APCO’s consultants are experts on the
political landscape, able to assess the repercussions of policy changes and the most
likely political outcomes nationally and locally. APCO collects strategic stakeholder
intelligence that allows clients to know what community groups or others are thinking,
and better understand the motivations and drivers of those groups to help inform
business decisions. APCO uses this information to help clients determine key
messages to effectively communicate with policy-makers and leverages our existing
relationships to help deliver results on behalf of clients.

Strategic Communication
Corporate and executive positioning
APCO’s programs give clients a competitive edge. APCO’s team helps clients position
themselves strategically, whether they are driven by the need to address a particular
issue or by a desire for more competitive brand recognition. APCO differentiates its
positioning programs by integrating communication tools that can be used to best
speak to clients’ target audiences.

Marketing communication
APCO helps clients showcase themselves and their products via high-profile seminars, trade
shows and forums, as well as media campaigns and online promotion. APCO bases its
communication on sound research to ensure an appreciation of customer needs and wants,
and offers innovative planning and logistical support to reinforce clients’ messages.

Litigation communication
Uncertainties in Indonesia about judicial independence and competence mean
companies must aim for victory in the court of public opinion. In cases where clients
are already engaged in legal proceedings, APCO helps win outside the courtroom.
Leveraging government and media relations within Indonesia and internationally
can be instrumental in resolving cases that are political in nature. For other cases,
promoting understanding among government and the broader public encourages fairer
treatment within the courtroom. Members of APCO’s experienced team have handled
litigation communication for clients in a number of high-profile cases.

Crisis communication
A company’s ability to respond to a crisis greatly affects the company’s reputation
among employees, partners, customers and the public. APCO works closely with
clients to create and implement crisis management plans, identify potential threats
and develop rapid-response mechanisms.

Media relations
Indonesia’s press is one of the freest in the world. APCO’s network and experience
working with key Indonesian media enhances clients’ public affairs campaigns and
helps achieve tangible results.

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Corporate responsibility
Companies today are expected to conduct business in a responsible and sustainable
manner. Operating in Indonesia, concerns about corruption, human and labor rights,
sustainable development, environmental protection and corporate governance confront
even the best-intentioned companies and organizations. Because local issues can
have global repercussions, APCO offers integrated services that reach audiences in
Indonesia and worldwide. APCO assists clients by facilitating dialogue with NGOs and
community groups; devising coalition-building strategies; and developing internal
communication and ethics programs.

Investor relations
Indonesian firms are increasingly seeking overseas listings, while foreign firms are
placing increasing importance on the financial communication surrounding their
Indonesian operations. APCO helps clients build the often under-appreciated value
of reputation and ensures that clients’ shareholders, worldwide, are well-informed of
their business progress in Indonesia.

Coalition building and grassroots advocacy

The voices of individual businesses are often unheard by policy-makers. APCO was
the first firm in Indonesia to create issue-based coalitions of companies and domestic
interest groups. These coalitions bring together people from all levels of society, allying
appropriate grassroots activists with political and commercial opinion leaders to deliver
strong and credible messages that ultimately influence decision-makers and shape
public opinion to recruit effective political allies.

For more information about APCO Worldwide, contact:

John Arnold
managing director

jarnold@apcoworldwide.com

10th Floor, World Trade Center

Jalan Jend. Sudirman Kav 29-31
© 2007 APCO Worldwide Inc. All rights reserved. Design: StudioAPCO®

Jakarta 12920
Indonesia

Phone: +62.21.5296.4611
Fax: +62.21.5296.4610

www.apcoworldwide.com

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