Wed, 19 Jan 2005

Investors urged to play role in ensuring security

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

Minister of Defense Juwono Soedarsono urged the corporate sector to share the responsibility of providing stable security conditions in the country by ensuring the welfare of their employees as well as help improve the welfare of local communities.

Speaking in front of hundreds of domestic and foreign investors on the second day of the two-day Infrastructure Summit on Tuesday, Juwono said no country could provide absolute guarantees for security, adding that the key ingredient to security was social and economic equity.

Juwono said with the limited capacity of the country's security apparatus, both in terms of funding and human resources, it was impossible to guarantee security for every citizen, while at the same time current high unemployment and poverty served as imminent threats to public order if they were not addressed properly.

"For the next five to 10 years, we are going to face a lot of glitches socially, economically and culturally simply because a large number of people are unemployed and living below the poverty line," he said, adding that this problem could be addressed only through better economic and social development.

"I appeal to you to consider the added cost of providing security for your employees, health services and scholarship schemes, especially for employees in remote areas, to give them some hope for a better future for us and Indonesia," the defense minister said.

Many investors have long complained about poor security in the country, which is considered one of the main reasons for the drop in foreign direct investment.

Industrial action is another determent to investment, with employees often protesting low wages or unfavorable working conditions, while people living near a company's production site protest or block entry to and looting of company assets.

Such protests have led to security disturbances that have affected a company's operation, and further heightened overall security concerns in the country.

During the session, some businesspeople asked about the involvement of the Indonesian Military (TNI) in business, and questioned the government's intention to end this practice.

Juwono responded by saying that the government was trying to figure out a system under which TNI's businesses could continue to finance the activities of the troops, especially in securing the welfare of its low-ranking personnel.

"It is my duty to set up a system for these companies to be become state-owned enterprises and ensure the welfare of our soldiers in the future," the minister remarked.