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