Discrimination of foreign executives

Discrimination of foreign executives

The controversial detention of five Newmont executives on as
yet unproven Buyat Bay contamination charges can be considered
another case of outright discrimination against foreign
companies, and represents a significant deterrent for top
expatriate executives to accept postings in Indonesia.

As illustrated by several prior high-profile cases involving
foreign multinationals, the arbitrary detention or imprisonment
of expatriate executives in the absence of legitimate court
verdicts cannot be considered an isolated incidence of the
miscarriage of justice.

Instances like these are in stark contrast to the treatment
meted out to executives of domestic companies and detentions in
the case of alleged or proven criminal charges in a majority of
cases remain exceptions to the rule, rather than the
implementation of strict and impartial law enforcement.

Preventing Newmont suspects or witnesses from leaving the
country should have been more than sufficient to serve the
interests of justice, and holding expatriate executives
personally and criminally responsible for untried charges brought
against their employer is not conducive to an improved foreign
investment climate.

Other discriminatory obstacles faced by expatriate executives
include the disclosure of offshore incomes and assets for tax
purposes and in many instances, the country's restrictive visa
policy represents an unnecessary hurdle not only for visiting
businessmen but also for potential investors.

JOSEPH LOUIS SPARTZ
Jakarta