Minister threatens to boycott Sony

Minister threatens to boycott Sony

The Jakarta Post, Jakarta

Minister of Manpower Jacob Nuwa Wea said he would launch a
boycott campaign against the products of Japanese tech giant Sony
Corp. unless the company explained its decision to close its
production plant in Indonesia, an official said on Tuesday.
"(Jacob Nuwa Wea) said that if Sony goes ahead and stops
production here without a clear explanation, then he will
campaign for a boycott of Sony products," said ministry spokesman
Dwi Anto, as quoted by AFP.

Nuwa Wea made the threat at a public event on Monday. The
spokesman said he would lead a boycott campaign in his individual
capacity as a concerned citizen.

Last week Sony announced it would relocate its audio plant
from Indonesia to Malaysia, surprising officials here.

The plan, Sony has said, was part of its global restructuring
strategy to reduce production bases from 70 to 54.

Sony is not the first company to pull out of Indonesia. But it
had been a long-time investor in the country and the surprise
decision has further tarnished Indonesia's reputation as an
investment destination.

In the absence of further explanation from Sony, officials and
experts were left with speculation as to the precise reasons.

Trade minister Rini Soewandi cited labor and tax problems,
while industrial sources suggested smuggling of electronic goods
had become intolerable.

Economists, however, said Indonesia's overall poor investment
climate -- mired in a volatile regulatory environment, difficult
tax regime and security problems -- was driving investors away.

Sony said it would maintain its audio distribution unit PT
Sony Electronics. The plant closure would take effect in March
2003 and would cost about 1,000 Sony employees their jobs.

"Sony employs thousands of workers and the closure of its
operations here will mean a lot more unemployed people," Anto
said.