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.