Besieged by giants

Fears, expressed by various parties in the past, that Indonesia would soon be swallowed up by giants (from other countries) unless Indonesians prepared themselves properly for the approaching tide of globalization seems at present close to becoming reality. Those giants come in many forms and are ready to drain our nation's acknowledged rich potential.

In the field of retail business, for example, Makro and Carrefour (previously Continent) are already here and have begun expanding into several of Indonesia's big cities. Soon, three more retail giants will be present. They are Giant (U.S.), Casino (France) and Tesco (Britain).

Another giant ready to enter Indonesia is the American communications services giant MCI WorldCom, which is planning to build a high-speed data network. With 50 percent of its customers belonging to the Fortune 500 group of companies, MCI WorldCom will no doubt lead the way for other giant corporations to enter Indonesia.

Under the current stage of globalization and integrated world economy it is no longer appropriate for one to ask whether control in any field of business is concentrated in international or domestic hands. The important point is how to ensure that a particular business sector can be made to generate the greatest possible benefits for consumers, absorb as many local workers as possible and contribute significantly to the state coffers.

With these economic benefits in mind, the government needs to create conditions that are conducive to encouraging those giants to come and invest their money in Indonesia. The most important thing is to ensure legal certainty, the paramount business condition aspiring investors are waiting for.

-- Bisnis Indonesia, Jakarta