Freedom fighters oppose foreign investment policy

Freedom fighters oppose foreign investment policy

JAKARTA (JP): A group of survivors of the independence
struggle of the 1940s is appealing to the people's sense of
nationalism in resisting outside pressures to open up its economy
to foreigners.

A delegation of the freedom fighters and affiliated
organizations visited the House of Representatives (DPR) on
Saturday to express their objection to the government's recent
decision to virtually open the economy to foreign investors.

The 20-strong delegation, who were met by members of the
Golkar faction (FKP), also appealed to the House to foil the
government's plan to allow foreigners to buy Indonesian property,
now still off-limits to them.

The group, led by Soerowo Abdulmanap and Amir Aryoso, called
for the repeal of the Government Regulation No. 22/1994 which
virtually gives foreign investors access to sectors which had
been considered strategic and reserved for local investors.

These sectors include ports, power generating and
transmission, telecommunication, education, flight services,
drinking water supply, railway, nuclear power plant and the mass
media.

"We believe that FKP could see our point and will take the
lead in the House in demanding for a review of the PP20/1994."

The delegates argued that the regulation runs counter to
Article 33 of the 1945 Constitution which stipulates that the
government retains control over branches of economy which affect
the lives of many people.

The regulation already fueled a controversy when it was
announced in June but the government in its defense, pointed out
that the state will continue to retain control over these
branches of the economy and the role of foreigners' will be
limited to that of management.

The decision was also taken in compliance with the new General
Agreement on Trade and Tariffs (GATT), a comprehensive document
calling for a sweeping economic liberalization across the globe.
Indonesia signed the agreement.

The delegates also drew the FKP's attention to what they see
as a strong attempt by real estate developers to change the law
and allow foreigners to acquire Indonesian property.

The delegates said that the House should act early to preempt
their lobby to modify the legislation.

President Soeharto has apparently given his principle
agreement to modify the law and allow foreigners to buy
apartments which are now mushrooming in Jakarta and other major
cities.

Developers have argued that allowing foreigners to buy
Indonesian property would boost prices of land and houses in
Indonesia. (fhp/emb)