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Farmers, activists oppose bill on capital investment

Source
Jakarta Post - March 21, 2007

Ridwan Max Sijabat, Jakarta – Hundreds of farmers and activists staged a demonstration outside the House of Representatives on Tuesday, protesting against the bill on capital investment.

They demanded that the House and the government discuss the contents of the bill in public before endorsing it.

Several legislators who received the demonstrators said the House would go ahead with its plan to pass the bill in the next plenary session since several civil groups had already given their opinions during the bill's deliberation.

The farmers joined forces with an alliance of NGOs to oppose the bill, which they said would bring suffering to farmers, unskilled workers and small- and medium-sized companies.

Henry Saragih, coordinator of the rally and chairman of the Federation of Indonesian Farmers' Unions, said all farmers' unions opposed the bill because it would only benefit foreign investors, whose security was being assured to exploit the resources-rich country.

"By giving the same treatment to foreign investors as domestic ones and a 95-year concession on land ownership, the bill is protecting foreign investors and assures their occupation of this rich country," Henry told the crowd.

He also said the bill was unacceptable as it prohibited the nationalization of foreign companies by the government. "The bill negates Indonesia's sovereignty over its territory and assets managed by multinational corporations," he said.

Irmadi Lubis, a member of the House special commission preparing the bill, defended it, saying it was needed to attract foreign investment, which would spur economic growth and general more job opportunities.

"After China and other ASEAN member countries, Indonesia has to follow suit, giving access as wide as possible to foreign investors to... the country," he said.

Lubis said the increasing opposition to the bill was unfortunate and caused by a lack of understanding of the bill's substance. "Granting a 95-year concession to foreign investors has long been implemented by China, Cambodia and Vietnam.

"These countries have an accumulation of concessions similar to those which Indonesia has given to many multinational corporation, such as PT Freeport McMoran Indonesia and PT Chevron Pacific Indonesia," he said.

"The bill bars the government from nationalizing foreign companies to ensure investment security and legal certainty. But the bill also recommends the government and the House (by law) take over foreign companies (found guilty of) committing corporate crimes."

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