Smart investors avoid Indonesia

Smart investors avoid Indonesia

The headlines read Labor law to woo investment In The Jakarta
Post, Feb. 26. Labor laws or lack of labor laws are only part of
wooing investment. A fair labor law is important, but right under
the headlines was a photo, which really indicates a prime reason
for lack of investment. Regardless of the reasoning of the people
involved, the picture is worth a thousand words. Basically the
picture indicates if we don't get our way, we will break down the
gates of the House of Representatives. What happens when a group
of workers don't see eye to eye with the company for which they
work? Are they going to destroy the property of the investors?
Attitudes must change if you are to woo investors.

Many investors have left Indonesia because of the legal
aspects involved. Corruption involving the lowest public
officials to very high officials in government prevent those laws
which exist from being upheld.

Another headline read more or less Fire blazes in Tanah Abang
and the article went on to indicate three out of four fire
hydrants did not work properly. The tragedy possibly effected
millions of common people. Factories closed or slowed down due to
not acquiring materials for production from the market.

Transportation took a hit when goods did not exist to deliver
to waiting customers all over the world. Shipping companies and
all their employees are effected. Truckers plying the poorly
maintained roads, streets, and highways had no reason to do so,
as products did not exist.

The kiosk owners cannot conduct their business and earn the
meager profits, which puts rice on their tables. Corrupt
officials who line their pockets with funds meant to improve the
nation's infrastructure might like this environment. Do you think
serious investors want to put their money and energy in such an
environment?

Still one headline trumpeted yet another banking scandal. Are
funds from foreign investors safe here? We have seen companies
lose millions of dollars by deciding to do business in Indonesia
and not just from banks.

This country now has an upward battle to negate the bad
reputation corruption has given it. Crime has increased
consistently every year here because criminals thrive in areas
where these conditions exist. Generally speaking smart investors
with big money will not migrate to areas where their investments
suffer such risks. Bottom line, clean it up to woo investors.

FRED BURKHART, Jakarta