Government, military to ensure security for investors

Government, military to ensure security for investors

JAKARTA (JP): The Ministry of Industry and Trade, and the
Military have agreed to work together to create a conducive and
safe environment for businesses operating in the country,
according to Minister of Industry and Trade Luhut Pandjaitan.

Luhut said on Monday that this was also part of efforts to
boost the country's exports.

"The TNI (Indonesian Military) commander has agreed and will
launch measures at his disposal, together with the Indonesian
Police, to help ensure security to boost our exports," he told
reporters after a meeting with TNI Commander Adm. Widodo AS.

Luhut said that eight of the Indonesian major business
associations, including the Indonesian Textile Association (API)
and the Association of Indonesian Wood Panel Producers (Apkindo),
had complained to him about the domestic security situation.

"I demand moral support from TNI and the police to be able to
work together with the people to provide security for investors,"
said the newly appointed minister, who is still an active Army
lieutenant general.

Luhut, who was appointed last month to replace Jusuf Kalla, is
also still the Indonesia Ambassador to Singapore.

Luhut has said that his current top priority was to boost
exports to help drive the country out of the more than two-year
economic crisis.

He had also been involved in intensive talks with various
government institutions, including the Indonesian Bank
Restructuring Agency (IBRA) and state banks, to immediately
resume lending to the real sector.

Social unrest and rioting have gripped several parts of
Indonesia since the country plunged into its deepest economic
crisis in three decades, and as Indonesia transforms into a more
democratic society.

Many companies have complained of rampant lootings, and the
taking over of land by local people, particularly after the
downfall of the former regime of Soeharto and his hand-picked
successor B.J. Habibie.

This problem has deterred businesses, including exporters,
from making new investments.

Mining companies and oil and gas operations have also faced
similar problems.

The gold mining giant PT Kelian Equatorial Mining (KEM) in
East Kalimantan reportedly had no choice other than to close down
its operation as local people blockaded the road toward the
mining site, leading to the mining operation being unable to
procure necessary supplies.

The protesting villagers have that demanded KEM pay
compensation for their land which they claim was acquired by the
company.

Oil and gas company PT Mobil Oil Indonesia, in the troubled
Aceh province, has been attacked with explosives, although so far
no serious fatalities have occurred.

Luhut stressed that the government's efforts to provide
security for investment could not be effective without the active
participation of the people.

"If we all want this nation to be better, we need to work
together to create a conducive environment to recover the
economy. Please don't ruin the good steps already taken by the
reform movement," he said.

Luhut said that his discussions with TNI also focussed on the
rampant smuggling of natural resources out of the country,
including fuel, timber and sand.

There have been allegations that the certain people in the
military have been involved in the crimes. (rei)