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