North Sulawesi tries to lure U.S. investors

North Sulawesi tries to lure U.S. investors

WASHINGTON (JP): Officials from North Sulawesi held an
investment forum here on Tuesday to lure American investors to
invest in the natural resources-rich province.

Mayor of Manado Wempie Fredrick said that the North Sulawesi
offered several important investment areas such as in
agroindustry, fisheries, and mining.

"We are here to inform people about the potential of North
Sulawesi," he said at the forum held at the Indonesian embassy.

Although many foreign companies have often complained about
the locals' resentment against their operations, North Sulawesi
Police chief Brigadier General Erald Dotulong said that the
province "is one of the safest places in Indonesia."

He said crime in the province was very low. He added that
social and political unrest, which have hit many parts of
Indonesia, was almost unknown in the province.

Several foreign mining companies including the U.S.-based
Newmont Corporation and Australia's Aurora Gold, already have
operations in the province. However, the companies have often
become the target of the local people's protests.

Newmont Minahasa Raya, which has been widely criticized for
allegedly causing pollution, announced recently that it would
close its gold mining operation in the area. But the company said
that the planned closure was not due to the local residents'
resentment but rather because of the depletion of the company's
gold reserves.

Aurora's subsidiary Meares Soputan Mining also said it would
quit the province as the local administration had failed to curb
illegal mining operations in its gold mine concession.

The province's head of research and development, L.W. Sondakh,
said the case of PT Newmont Minahasa Raya was unique. He said
North Sulawesi preferred a good environment to high economic
growth. But he said that North Sulawesi was not against mining.

"Newmont needs to make adjustments, including the revenue-
sharing system. Please stay on, but please adjust to the new
era," he told the forum.

Dotulong said conditions at Newmont were calm. "The company is
operating normally now," he said. He added that the unrest had
been provoked by some local and international non-governmental
organizations.

Kawanua USA organized the business forum. Kawanua USA is a
group representing people from North Sulawesi who now live in the
United States.

Kawanua chairman Emile D. Mailangkay said the group would
attempt to hold the business forum every year. "Next year, we
will hold the forum in Los Angeles," he said.

According to the Indonesian ambassador to the U.S., Dorodjatun
Kuntjoro-Jakti, this is the first time the embassy had held such
a promotional function for a province.

Newmont Minahasa Raya provided guests with lunch. No one from
the company addressed the forum, however. (Yenni Djahidin)