Soeharto warns industries

Soeharto warns industries

JAKARTA (JP): In an apparent major breakthrough in investment
policies, President Soeharto yesterday indicated that the
government will no longer allow business groups which already
control upstream industries to expand into downstream industries.

"The President has already instructed State Minister of
Investment Sanyoto Sastrowardoyo not to issue any new permits for
upstream industries which are planning to move into downstream
activities," said Adi Putra Taher, chairman of the Association of
Indonesian Young Businessmen, told reporters after meeting with
Soeharto at the Merdeka Palace yesterday.

Adi did not say when exactly the President issued the
instruction or when and how it will be enforced.

Similarly, the businessman did not explain how the new policy
will affect existing business groups which already have a tight
grip on upstream industries all the way to downstream ones.

Examples of these politically connected conglomerates are the
Salim Group, which has interests from the biggest flour mill in
the country to the largest noodle manufacture, and the Sinar Mas
Group which controls forest concessions to note-book printing.
(hdj)