Agribusiness controversy continues

Agribusiness controversy continues

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

Controversy over an agribusiness company continues as the
government seems reluctant to pursue legal action against the
company.

Even Vice President Hamzah Haz does not see any necessity to
pursue legal measures against PT Qurnia Subur Alam Raya (QSAR),
despite the fact that its president, Ramli Araby, has allegedly
run away with some Rp 500 billion (US$55.5 million) of public
money.

Instead of ordering the arrest of Ramli, Hamzah ordered
Minister of Agriculture Bungaran Saragih on Monday to identify a
possible alternative use for the land abandoned by Ramli.

"I have ordered the minister to check the economic use of that
land; after all it is our asset," the Vice President said after
attending a Cabinet meeting.

Bungaran suggested that the matter ought to be resolved
between the company and its investors, underlining that this was
just another failed investment.

"But for the future we will summon the local administration to
check the remaining similar companies -- whether they are
legitimate or not," Bungaran said, as there are 14 other similar
companies in existence in the country.

The case of PT QSAR made the headlines in many local
newspapers after some investors sued the company for failing to
honor its promises.

PT QSAR claimed to own a vast amount of land in Cisaat,
Sukabumi, West Java, which was used to cultivate a variety of
agricultural products and had attracted people to invest in the
business since 1997.

The company offered some 60 percent of its profits each year
as a dividend to investors over a period of two years.

Under the company's business plans, an investor, for example,
would receive Rp 7 million in profit after three months from an
initial investment of Rp 42 million in the company.

Last year, Hamzah even made an official visit to the place as
it was seen to be an example of legitimate and profitable
agribusiness.

But then, in March, the company failed to meet its obligations
to its investors as promised.

Feeling cheated and manipulated by the management, the
investors, comprising businesspeople, military generals,
journalists, legislators, housewives and others, jointly seized
the company's assets.

Bungaran blamed these people for believing the company's
promises.

"The public should protect itself against this kind of get-
rich-quick investment. The government cannot be blamed for such
occurrences," the minister said.