Letter: Investor problems

I refer to M. Rusdi’s letter titled “The need for continual reform” (Sept. 2).

Here are facts from my own experience. If a foreign investor wants to establish a business in Indonesia, that investor should expect to face the following:

Complicated and drawn out processes for business licensing;

The need to grease the palms of government officials to “expedite” the above process, while in reality this is just to make them do the work they are already paid for;

Corruption at nearly every level of every government department, from Customs (import-export), the police, rigged bidding systems, rigged procurement systems, among a slew of others;

Labor Laws that do not favor businesses. How could companies be expected to give severance pay to employees fired because they were caught stealing? Companies are forced to pay months of severance pay to people dismissed because of absence, laziness, thievery, fraud, etc. Basically, the Labor Laws create incentives for employees to cheat, lie, be lazy and steal. They receive severance pay no matter what.

There is no protection for foreign investors. After all, how many companies have been subjected to illegal demonstrations whereby in addition to voicing their demands, protestors also destroy company property. Yet the police do nothing, the Trade Ministry does nothing and the

Foreign Investment Bureau does nothing. It is not safe for foreigners to be in Indonesia, whether for business or otherwise. What about the police non-response to the [proposed] criminal sweep of Malaysian citizens? I have tolerated many things while doing business in Indonesia, but when my wife came to visit me, the taxi she took from the airport to our place was stopped by hooligans who harassed and threatened her.

When demonstrators almost broke the gate at our rented property, all the money in the world meant nothing. It was time for me to get the hell out of Indonesia. We are business people willing go to places so long as there is opportunity for money to be made legally, transactions to be consummated ethically, and a feeling that we are welcome. So, prove to us that your country deserves foreign investment.

Chris C.
Washington