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Khalid told Dow Jones Newswires, in his first remarks on the matter since Guthrie closed the deal last month with the Indonesian Bank Restructuring
Agency, or IBRA.
Conflicting statements from Indonesian government officials after that have cast doubts over the status of the deal, which gives Guthrie control over around 200,000 hectares of oil palm estates in Indonesia.
Guthrie paid $368 million for the 25 oil palm plantation concerns formerly owned by the Salim Group. IBRA took over the companies from Salim Group after the financial crisis that struck the region in late 1997, hitting Indonesia particularly hard.
Other Malaysian plantation companies view the Guthrie acquisition as a test case and are closely watching to see how the deal pans out amid growing political uncertainty in Indonesia. Apr. 19, Dow Jones
IMPEDIMENTS TO INVESTMENT
The Indonesian Chamber of Commerce and Industry (KADIN) presented a paper to President Wahid on February 7 outlining eight areas that impede investment in Indonesia:
- security
- poor implementation of regional autonomy
- industrial regulations
- taxation
- agriculture
- private sector debt restructuring
- infrastructure
- banking sector
While emphasizing all eight areas, KADIN placed top priority on the resolution of domestic instability. The Chamber further criticized the GOI for poor implementation of regional autonomy, citing the rise of new regional taxes and fees. KADIN ended the discussion of top priority issues with an appeal to stimulate economic growth by reducing taxes. They referred specifically to the luxury tax, income tax on interest from bank deposits, and debt restructuring tax arrangements. They also addressed the need for transparent and proactive policies. KADIN chastised the GOI's ad hoc and non-transparent approach to private-sector debt restructuring. Finally, the KADIN paper raised apprehensions that Indonesia will not be prepared for power shortages predicted to occur as early as 2003. (from US Embassy "Trends" Report)
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 | Social/education Affairs
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Indonesia-us partnership for Recruiting Indonesian Students
Since 1989, Northeastern University, an AICC member, has implemented programs to recruit Indonesian students both for work experience during college (coop) and post-graduate employment. AICC members provide employment opportunities and financial support to the program along with grants from the US government and the Government of Indonesia. A Council in Indonesia (CDPP) has been established to institutionalize the concept of work experience during college. Prof. Leonard Zion of Northeastern, one of its architects, advises the Council and manages the US recruitment process. Companies are urged to participate with the Northeastern office on all of its recruiting needs. Students are from an ever-widening network of schools not just Northeastern. For more information call Dr. Zion at (617) 244-3792.
Denpasar to have 'Free-Car Friday'
JAKARTA (JP): In a bid to ease traffic congestion in Denpasar, the capital of Bali, the Denpasar mayoralty is set to launch a car-free day which will fall every Friday starting on April 20.The Jakarta Post April 18, 2001
Indonesia Wins "Generosity Game"
(from New Scientist, March 10, 2001)
If I hand you a bundle of cash equivalent to a week's salary and say you can have it, but on the condition that you share the money with someone else. I'm not saying who, but it's someone you know. On the plus side, your anonymity is guaranteed, and you can offer as much or as little as you like. If the other person accepts your offer, each of you keeps your share of the kitty. But if your offer is refused, neither of you gets anything. How much would you offer?
The above arrangement was offered by social scientists all over the world. Indonesia's whaling people of Halmahera ranked the
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