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)