Sat, 30 Nov 2002

Sony's exit a national case

I was surprised to read Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti's comments on the Sony Corporation's plan to leave Indonesia in the Nov. 29 edition of Kompas.

"Don't blow up one case to make it look like it's a national one," he was quoted as saying.

As a common citizen, I would like to tell him that it is a national case.

The plan to shut down Sony's audio equipment plant in Bekasi, West Java, is part of its global business network. But for us Indonesians, the decision has the same effect of a snowball rolling down a hill.

Dorodjatun, as well as Minister of Industry and Trade Rini MS Soewandi, who said that we could do nothing about it, may have forgotten the fact that Sony is not the first foreign investor to flee. This reflects poorly on the investment climate of this country.

Doesn't Dorodjatun see that the loss of foreign investments will contribute to an increase in the country's unemployment? Isn't unemployment a national problem? Doesn't he realize that each Sony employee being laid off has dependents or families? He must be aware that unemployment leads to crime. Never belittle any problem, sir!

When the Thai baht fell in 1997, all Indonesian officials, especially economic ministers, stated in the media that "our rupiah is all right. Our monetary fundamentals are strong. There is nothing to worry about." Then the rupiah started dropping against the U.S. dollar and the national disaster began. This country's economy has yet to recover, while Thailand has regained its economy.

So Dorodjatun and Rini, please be careful when making public statements. If you could do nothing about this incident then what can you do as ministers? Why didn't you take preventive steps before Sony decided to leave this country? Please be honest with the fact that the country still has a myriad of problems, many of which have discouraged foreign investors here.

MAHISA RESPATI, Tangerang, Banten