Sony Corp's decision

Sony Corp's decision

Sony Corp's plan to quit Indonesia proves that the investment
climate is very poor in this country.

Sony's head office in Japan has reportedly said it was done to
lessen the number of its plants abroad from 70 to 54. Sony's
plant in Indonesia, which produces audio equipment has only 1,100
employees, compared to Malaysia's plant which has 11,000 workers.

In 2000 a huge workers' demonstration forced Sony in Indonesia
to close for four months.

The step to be taken by Sony Corp should be a warning to the
government that the investment climate must be improved.

Another Japanese electronics producer Matsushita also planned
to withdraw its investment some years ago. The plan was canceled
after the government approached the company and found out the
real problems faced by the company.

Reports said that the government would set up a special task
force to deal with Sony Corp's plan.

The question is what next? What can the government do to
create a good investment climate?

-- Harian Ekonomi Neraca, Jakarta