Expatriate businesses staying put<\/p>\n
A'an Suryana and Robert S. Finnegan, The Jakarta Post, Jakarta<\/p>\n
Multinational corporations in Indonesia have considered carefully
\ntravel warnings recently issued by several countries for
\nIndonesia in the wake of the Bali bombing and have elected to
\ncontinue operations, according to trans-national corporation
\nexecutives interviewed recently.<\/p>\n
This low-level impact is attributed in part to the readiness
\nof multinational companies to deal decisively with turbulent
\nsituations in Indonesia, in addition to the already limited
\nnumber of expatriates living here following the 1997 financial
\ncrisis.<\/p>\n
President director of BHP Steel Rob Crawford said on Friday
\nthat his corporation has been here for 30 years and is not only
\nstaying, BHP is planning significant expansion projects.<\/p>\n
\"We made it through the 1997 financial crisis, it was
\ndifficult but we survived. There was also a downturn in
\ndispatches in the month of October, about 20 percent as a result
\nof uncertainty as to what was going to happen next and the
\nexchange rate deterioration,\" he said.<\/p>\n
However, Crawford sees this as a short-term impact and added
\nthat while people were stunned and saddened by this tragic loss
\nof life there is also the realization that this could happen
\nanywhere in the world at anytime in the future. He also
\nanticipates the situation stabilizing now and does not visualize
\na long-term impact on business, while at the same time
\nacknowledging that continuing terrorist activity would alter this
\nassessment.<\/p>\n
\"If there were a string of terrorist incidents in the country,
\nthis obviously would affect our confidence. But the issues that
\nhave been impacting our business the most are the ongoing
\nproblems in dealing with certain government policies, corruption,
\nsecurity and legal certainty,\" Crawford said, adding that while
\nthe government has recently announced measures to protect the
\nsteel industry, they are yet to be tested in the marketplace and
\nBHP would prefer to see consistent protection measures across the
\nsteel industry.<\/p>\n
\"The Bali bombing was a most tragic event against humanity
\nthat can never be forgotten and must be addressed, but in
\nrelation to our business environment these other issues can have
\na definite material and long term impact,\" he said.<\/p>\n
Crawford also said that training is an integral part of BHP
\ncorporate policy.<\/p>\n
\"We have different levels of training and development, there
\nis a BHP Steel-wide program where people attend programs in
\nAustralia, Singapore or the U.S., sponsored by the company. And
\nof course we have our own local training and development,
\nassisting our people in developing their skills, knowledge and
\ncapabilities,\" he said, in addition to corporate policy for the
\ndevelopment and promotion of Indonesian nationals into senior
\npositions within the company. In 1995 there were over 10 foreign
\nnationals on the staff, now there are just three.<\/p>\n
President director of BHP Steel Lysaght Indonesia, Willius
\nSuwanda is an example of this policy.<\/p>\n
\"We are very optimistic and are looking for opportunities.
\nWhile economic growth is not optimal at the moment, with the
\nadvent of regional autonomy and decentralization there is
\nunlimited potential,\" he said. \"It is a matter of us being
\ndiligent and pursuing market opportunities.\"<\/p>\n
Both executives are cautiously optimistic on the future.<\/p>\n
\"I would like to emphasize that we are confident about the
\nfuture,\" Crawford said. \"We are very committed to Indonesia, our
\nemployees and our customers. There is no way we are going to
\nleave them without support.\"<\/p>\n
Nunik Maulana, spokeswoman of mining giant PT Rio Tinto
\nIndonesia, said there was no evidence of a massive pullout of
\nexpatriates following the Bali bombing, which killed more than
\n190 people, mostly foreign tourists.<\/p>\n
\"The expatriates are working as usual, and they are quite
\nconfident in their decision to stay,\" Nunik said.<\/p>\n
PT Rio Tinto has two expatriates, while its subsidiary PT
\nKaltim Prima Coal employs 23 expatriates, working in its coal
\nmining operation in Sangatta, East Kalimantan.<\/p>\n
Despite repeated warnings, the majority of expatriates are
\nstaying put.<\/p>\n
According to Nunik, fears of insecurity among expatriates have
\nbeen calmed as the company has prepared contingency plans to
\naddress the turbulent situation in Indonesia.<\/p>\n
Their contingency plan includes evacuation plans and close
\ncooperation with the expatriates' respective embassies, as well
\nas coordinating with local security. In addition to the
\ncontingency plan, expatriates are apparently psychologically
\nprepared for worst-case situations here.<\/p>\n
Having experienced frequent social and political turmoil
\nthroughout the country following the onset of the financial
\ncrisis in 1997, expatriates appear to be \"acclimatized\" to these
\nunforeseen events.<\/p>\n
Some foreigners and in particular Westerners, may still be
\nseen frequenting the malls and public places in Jakarta recently
\ndespite the incident in Bali despite a rash of bomb threats here.<\/p>\n
The Secretary General of the Ministry of Manpower, Djoko Sidik
\nPramono maintains that there was only a slight decrease based on
\nthe expatriate taxs received by the government this month.<\/p>\n
Every expatriate is required to pay US$100 per month to the
\nso-called Funds for Skill and Expertise Development (DPKK) to the
\ngovernment.<\/p>\n
\"It indicates that only a few expatriates had left Indonesia
\nfollowing the bomb blast,\" he said, adding that the DPKK revenue
\ndropped 3 percent.<\/p>\n
Meanwhile, other multinational and local companies vowed that
\nthe impact of the travel warnings would not disrupt their
\noperations, as the number of expatriates were indeed already
\nlimited here. Moreover, Indonesian professionals have been ready
\nto replace their foreign counterparts, they said.<\/p>\n
PT Caltex Pacific Indonesia, for example, has for years
\ncarried out training programs to accelerate the training of local
\nprofessionals in oil field operations.<\/p>\n
The oil giant currently has some 150 expatriates on the
\npayroll. \"It is a rule within the company that after three years,
\nexpatriates must be replaced by local professionals,\" PT Caltex
\nspokesman Renville Almatsier said.<\/p>\n
Indonesian conglomerate Bakrie Group, which has gone
\ninternational, said that only several expatriates left the
\ncompany after the 1997 monetary crisis.<\/p>\n
Bakrie has gradually phased out expatriates -- which were
\npreviously paid by U.S. dollar -- after the rupiah significantly
\ndepreciated against the dollar in 1997.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/expatriate-businesses-staying-put-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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