U.S. Investors Ask for Law Enforcement
Tuesday, 14 November, 2006 | 13:16 WIB

Tempo Interactive, Jakarta: A group of US investors have requested that the Indonesian government be consistent in such matters as law enforcement and policy system transparency. Both issues are viewed as obstacles for US investment in Indonesia. “Money and investment will only find a secure place with a transparent legal system,” said Head of the US Chamber of Commerce Thomas J. Donahue yesterday (11/13).

Donahue stated that US investors observed that Indonesia is a secure place. “I feel secure here. And the leadership of your President in fighting against terrorism makes Indonesia a comfortable place yet very challenging to work,” he said.
In his visit to Indonesia, he appreciated the attitude of the Indonesian government that has formulated the Draft Bill on Workers that places the employers and the workers in equal positions. In addition, according to Donahue, investors are awaiting the results of corruption handling and the discussion on intellectual property rights.

Regarding investors in the mining sector that were frequently suspected of ignoring the conservation of the environment and local people, Donahue requested that Indonesian courts would pass the verdict fairly. “As the Freeport and Newmont cases showed, Indonesia must think hard,” he said. The reason was that law enforcement would affect investment, whether it is short-term or long-term.

As regards the possibilities of capital investment in mining and oil in Indonesia within a short while, Donahue saw that the potentials were still great. “So, if the government creates a conducive climate, the potentials of investment are still there,” he said.

M.S. Hidayat, Head of the Indonesia Chamber of Commerce, has asked that the judgment to the Indonesian legal system be set forth objectively. “If our justice is questioned, let us test it together. Do not stop the legal process ,” he said.

According to him, the environmental pollution case with the American mining company Newmont was open to the public. “It could be tested whether or not the judges were fair. And, actually, the US was the one who taught the standards of the environment. When it was adopted in Indonesia, the US should be concerned,” he said.

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