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