Exploitation by advanced countries

Exploitation by advanced countries

From Forum Keadilan

While flying to Japan I came across an article in the Sept. 29
issue of Kompas entitled: Kekuatan ekonomi menjadi sarana
pemeras (Economic power has been abused for exploitation). In it
Edi Sudradjat says: "The advanced countries have used their
economic power to force their wishes on developing countries. In
addition, the multi-national enterprises in the developed
countries often influence the foreign policies their countries
adhere to. "Therefore, society and its business community should
try to curtail this negative tendency to exploit by establishing
efforts to become competitive in domestic markets as a part of
the national movement."

In this context, the Jakarta Lawyers Club and Indonesian
lawyers should focus their attention on these trends or, better
yet, facts.

Since the establishment of Law No 1/1967 concerning foreign
capital investments, the business contracts pairing foreign
elements and Indonesian partners have been dominated by the
foreign investors. Why? Simply because they have much larger
funds and often have greater control over the shares of the
limited liabilities companies. They appoint and hire their own
consultants. Even in technical know-how agreements they apply
their own law. In a nutshell, Indonesia loses out as soon as a
business agreement is signed.

The statement of the Minister of Defense and Security reminds
me of something very fundamental -- capitalism is based on
individualism, a system which applies exploitation de l'homme par
l'homme. Through this system the Indonesian concern, even with a
majority of shares, tends to be thoroughly exploited under the
business agreement -- disregarding any principle of equality.

It is time we Indonesian lawyers gave our support and lawful
protection to Indonesian entrepreneurs, and thereby to the
principle of equity -- from the preliminary signing of a joint
venture and also to the rest of the transactions that follow.

O.C. KALIGIS

Jakarta