Asset seizure threat<\/p>\n
Sadly, U.S. Ambassador Robert Gelbard is playing with fire for
\nhis overt threat to seize Indonesian assets over the OPIC
\ndispute. For those of you who have been living under a rock,
\nState Electricity company (PLN) defaulted on its payments to
\nAmerican energy producer MidAmerican Energy Holdings (formerly
\nknown as CalEnergy). MidAmerican turned to their U.S.
\ngovernment's Overseas Private Investment Corp. (OPIC) for
\ninsurance and, in turn, received US$290 million. OPIC is now in
\nthe midst of negotiations with the Indonesian government in an
\nattempt to be reimbursed for the amount of the insurance, and
\nunfortunately, will have to continue under the uncomfortable
\ncircumstances Mr. Gelbard's statements have created.<\/p>\n
Being the chief representative of the world's superpower in
\nJakarta, the Honorable Mr. Gelbard is well aware of the fragility
\nof the Indonesian economy, especially with the recent roller
\ncoaster exchange rates and upcoming General Session of the
\nPeople's Consultative Assembly. His remarks are not only
\nnegatively impacting on the economy but are also misinformed and
\nunhelpful in aiming toward a resolution to the dispute.<\/p>\n
Here are some facts:
\n* MidAmerican's disputed contract in Dieng and Patuha originated
\nthrough corruption, collusion and nepotism during the Soeharto
\nera (YLKI, Media Indonesia, March 29, 2000).
\n* The claim that minister Bambang Sudibyo made that Indonesia
\n\"would not pay the claims\" is erroneous and misleading, since,
\naccording to the Ministry of Finance, OPIC has never submitted an
\ninvoice to the government of Indonesia. An invoice is standard
\nand necessary for proper processing (finance ministry letter,
\nKompas, April8, 2000).
\n* MidAmerican (CalEnergy) has defaulted on its payments to local
\nIndonesia contractors for the amount of $40 million. Should the
\nU.S. government expect Indonesia to promptly pay its debts -- now
\nunder threat of asset seizure -- why doesn't MidAmerican promptly
\npay theirs? (\"Firm seeks U.S. government help in dispute with
\nCalEnergy\", The Jakarta Post, Oct. 1, 1998).<\/p>\n
Indonesia remains at a fragile economic crossroad as it tries
\nto steer itself out of the economic crisis and toward a truly
\nfunctional democracy. We, as Indonesians, look toward the United
\nStates as an old ally and friend for moral encouragement and much
\nneeded financial support. Mr. Gelbard, having already served the
\npost of highest ranking American official in Jakarta for two
\nyears, knows the realities and tremendous obstacles Indonesia
\nfaces today. Why, then, does he refuse to let the process play
\nitself out by making public threats to the Indonesian government
\nthat -- obvious to any sensible person -- would easily cause a
\nrun on the rupiah in international markets?<\/p>\n
Mr. Gelbard, during his two years in Jakarta, has time and
\ntime again shown himself to be a liability for Indonesia, and as
\nan Indonesian businessman who deals with American businessman on
\na daily basis, I can no longer ignore the havoc he inflicts upon
\nthe already weak local economy.<\/p>\n
Therefore, I agree with the recommendation of Mr. Priyo Budi
\nSantoso, Golkar Party member of House of Representatives
\nCommission VIII, that Mr. Gelbard should be made persona non
\ngrata and expelled from Indonesia (Indonesian Observer, Dec. 18,
\n1999).<\/p>\n
MARWOTO<\/p>\n
Public Relations Dept.<\/p>\n
of the Alliance of Victims<\/p>\n
of Geothermal Projects (AVGP)<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asset-seizure-threat-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }