Unrest in Pasuruan

Unrest in Pasuruan

Joint security forces comprising local soldiers and police
acted sternly against demonstrators who have resorted to criminal
actions by setting fire to two cars and ransacking houses.

The unrest, which began on Nov. 15, was initially sparked by
suspicions that waste discarded by PT Chell Samsung Indonesia (PT
CSI) has led to the decline of the shrimp population around
Rejoso, in Pasuruan, East Java. However, after 60 demonstrators
were interrogated, there was ground for suspicion that a third
party was taking advantage of the situation. It turned out those
who were interrogated were from elsewhere.

The Pasuruan incident gives reason for apprehension because,
aside from upsetting public order, it could negatively effect the
preparation for the onset of free trade.

To offset rising labor costs in their countries of origin as
well as with an eye on the availability of raw materials, many
developed countries are looking for new sites to locate their
plants. Industries are relocating from the developed countries to
the developing.

The major considerations when deciding on a suitable location
are the availability of skilled labor at relatively low cost, the
availability of raw materials, a suitable communications
infrastructure, transparent and consistent policies and a lenient
taxation system. However, all these advantages are ineffectual
without political stability and the guarantee of security.

What happened at PT CSI could be bad press for Indonesia as a
potential site for industrial relocation. This is all the more
true because PT CSI is part of a large global enterprise and
whatever befalls it could swiftly become known to other major
corporations.

-- Suara Karya, Jakarta