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