NGOs oppose more foreign investment

Three prominent civil society groups opposed the recent World Economic Forum on East Asia today, saying it would bring more irresponsible foreign investment to Indonesia.

Dani Setiawan, the head of Anti-Debt Coalition, said that despite bringing money into Indonesia and creating more jobs, foreign investment would only provide limited benefits and yield long-lasting negative impacts such as the exploitation of natural resources and environmental disaster.

“The government is supposed to limit foreign investment in Indonesia, not open the opportunity widely, because it will harm local people,” Dani said.

Berry Furwan, the head of the Indonesian Forum for the Environment (Walhi), said the government has yet to acquire the necessary mechanisms to address potential damage to the environment from the expansion of big foreign investment.

“The government just applies old mechanisms to address environmental damage and food crises,” he said.

A speaker for the Indonesian Farmers' Union (SPI), Hendry Siahaan, said opening strategic natural resources to foreign investment is a direct violation of the constitution.

“The 1945 Constitution’s Article 33 says that the earth and water and natural resources contained therein shall be controlled by the state and used as much as possible for the prosperity of the people,” Henry said.

The World Economic Forum on East Asia was held in Jakarta from June 12 to 13 and attended by about 600 participants from all over the world.

On Monday, the government announced at the WEF more than US$20 billion in foreign direct investment from top global firms.

The first WEF on East Asia conducted in Indonesia has put the country under the spotlight for investment opportunities involving several bilateral meetings with major businesses from the United States, Europe and South Korea, including Microsoft, Cisco Systems, Chevron, Unilever, Metro AG, Nestle as well as India’s GVK and GMR.