JP/5/FIRM

Foreign firms threaten local business

Antara Bandarlampung

Local businesspeople are complaining about the number of foreign firms opening up in Lampung, resulting in stiff competition that they claim is forcing them out of business.

Businesspeople voiced concern at a meeting on foreign trade between 100 local businessmen and government officials in Bandarlampung city recently. One businessman questioned the government policy of allowing foreign firms to enter the country's regions.

"The number of foreign companies entering business in Lampung is huge, and they have even opened branches here," said an executive from a local conglomerate in Lampung.

In Lampung, foreign firms are mostly involved in the grocery business as well as the exportation of natural resources. Foreign firms are reportedly very competitive and beat out local firms by, for example, buying commodities such as coffee beans or black pepper at prices higher than those offered by local exporting companies.

Responding to their concerns, government official Yuwelis Yunis said foreign competition was common worldwide and could not be avoided.

"The entry of foreign businesses, such as Carrefour, in the regions is a lesson for us and local businesses. However, it also brings benefits," said Yuwelis, a section chief at the Ministry of Industry's Directorate General of Chemical, Agricultural and Forest Product Industries.

Foreign businesses create jobs and the companies benefit local farmers by stocking their produce, said Yuwelis.