JP/5/FIRM

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.