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)