Besieged by giants

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