Investment in Irian Jaya

Investment in Irian Jaya

For the last three years the government has intensively done
its utmost to utilize the natural resources of the eastern part
of Indonesia (IBT). The private sector has been called upon to
invest capital in this area.

As a businessman, I fully appreciate this government ideal,
more so because the natural resources there are promising. So
three years ago, after careful consideration, I decided to invest
my money in Irian Jaya. My decision was based on the fact that
the government established flights between Los Angeles and Irian
Jaya. I believed transportation problems were out of the
question.

Hotels were built to cope with tourism needs, and some mining
locations were opened. So the possibility of discontinuing the
Los Angeles-Irian Jaya flights was unimaginable.

My line of business there concerns decorative fish, which
abound in that area. This business was promising because
competition was virtually non-existent. I poured Rp 900 million
into this venture. But imagine my consternation when, after three
years had passed, Garuda Indonesia terminated their Los Angeles-
Irian Jaya route. The only rationale of this termination was:
Garuda was suffering losses. Many other companies have suffered
losses of billions of rupiah as a result of the flight closure.

Don't the officials concerned think of the negative effect the
policy has on existing companies? I did my best to sort out every
problem I encountered once I decided to invest there. If not for
my strong patriotism, I would have done otherwise. Then I had to
encounter such problems as incomprehensible bureaucracy, lack of
support from the local government, etc.

It is indeed a tragedy for all businessmen who have invested
their money in Irian Jaya. Would a seminar be necessary to find
out the best solution to the problem? How would companies settle
their bank interest, which continues to haunt them?

MUCHTAR

Address known to editor