Foreign investments in small businesses

Foreign investments in small businesses

Discussions were held on Monday between the Minister of Cooperatives and Small Enterprises, Subiakto Tjakrawerdaja, and the State Minister of Investment/Chairman of Investment Coordinating Board, Sanyoto Sastrowardoyo. The subject of the discussions was a draft joint decision regarding foreign investment in small businesses.

After the meeting Minister Subiakto announced that the government was planning to open up foreign investment opportunities as widely as possible, which would include small businesses. In other words the government will abandon its policy of keeping "business sanctuaries" in order for Indonesia to draw a maximum benefit from the industries relocating from other countries.

We know how important the roles and functions of small businesses are in the context of our country's social and economic make-up. Small businesses are not merely economic entities. We often say that small businesses provide a safety valve to protect us from the possible social (and economic) problems that could erupt.

The creation of proper legislation to protect small businesses has not yet become reality. Now that a new idea has been offered -- which is, to open up the small business sector to foreign investments -- it is therefore quite understandable that the following question arise: Will the presence of foreign capital not worsen the burden that our national small business people must bear?

-- Kompas, Jakarta