Indonesia failing to cash in on mineral surge: analysts
Originally Posted By: KuKuKaChu
Indonesia failing to cash in on mineral surge: analysts
Indonesia is failing to cash in on a global surge in mineral prices, with the country's confusing business environment turning off major new investment, analysts say.
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Royalties and taxes that previously flowed to Jakarta are now staying in the regions -- and often ending up in the pockets of local officials, he said. (*)
Indonesia is failing to cash in on a global surge in mineral prices, with the country's confusing business environment turning off major new investment, analysts say.
....
Royalties and taxes that previously flowed to Jakarta are now staying in the regions -- and often ending up in the pockets of local officials, he said. (*)
It's actually not so "confusing" as it is just a simple matter of the bureaucrats keeping things close to the vest so they can be sure to be part of any development project (in terms of milking it for cash). This is the whole problem and no matter what the Econ minister says or SBY says, these little myopic "local officials" don't have the intellectual capacity to the see the big picture and even if they did, they'd still let personal greed get in the way and demand kickbacks, bribes and percentages of the profits. AND their biggest "negotiation" tool is to wait and put more hurdles in place until someone gets so frustrated and pays them to remove the hurdles. Call it extortion if you will. I call it a sure path to backwardness -- anti-development.