European investors cancel plans in RI due to unrest
European investors cancel plans in RI due to unrest
JAKARTA (JP): Many European investors have backed down from
their plans to invest in Indonesia due to the high incidence of
social unrest, a noted business envoy has said.
Hashim Djojohadikusumo, Indonesia's special business envoy for
Europe, said on Thursday that his recent trip there to promote
investment in Indonesia became rather fruitless because investors
were concerned over security.
"They are skeptical about Indonesian ability to maintain
security now," he told reporters after meeting Industry and Trade
Minister Rahardi Ramelan.
Some companies planning to invest in the country had postponed
their plans indefinitely, he added.
He cited Continental German, which had initially planned to
invest 100 million Deutschemark (US$59.52 million) in a tire
manufacturing plant in Bekasi, West Java.
The company delayed its plan in November due to the political
uncertainty in the run-up to the June general election and
presidential election later this year.
Indonesia has been hit by seemingly endless bouts of ethnic
and religious violence over the past few months with the latest
round on Ambon island leaving almost 90 people dead and hundreds
of properties burned or damaged.
Other companies from Italy and Switzerland have also decided
to put investment plans on hold, he said.
Many investors in Europe had asked him about last week's
bloody riots in Ambon, Hashim said, adding that the riots had
prompted many governments to warn their citizens against
traveling to Indonesia.
Several countries, including the United States and Japan had
issued travel advisories for their nationals intending to travel
to Indonesia.
Shoe and textile-related exporters said they now had to meet
their prospective buyers in their respective countries or in
Singapore to arrange business deals due to concerns for safety.
"Some executives have to get special permits from their
directors to travel here, it's not as easy as before," he said.
"So you can imagine how hard it is to restore the confidence
of the European community in Indonesia," he said. (das)