2007 Investment

Jan 15th, 2008, in Business & Economy, IM Posts, by

A big increase in foreign direct investment in 2007, with Singapore leading the way.

Foreign Investment

According to the National Investment Coordinating Board, (Badan Koordinasi Penanaman Modal, BKPM) realised foreign direct investment (FDI) in Indonesia rose by 72% on 2006, reaching $10.34 billion.

The countries investing the most in Indonesia:

  • Singapore - $3.75 billion spread over 124 projects
  • the United Kingdom - $1.69 billion
  • South Korea - $627.7 million
  • Japan - $618.2 million
  • Taiwan - $469.7 million

Approved, but not realised, FDI was $40.14 billion in 2007, up 156% on 2006.

Domestic Investment

Meanwhile realised domestic investment rose by 57.8% to 34.87 trillion rupiah, while approved investment was at 188 trillion rupiah, up 16%. antara


32 Comments on “2007 Investment”

  1. avatar Dragonwall says:

    I thought that everyone was saying that Singapore lynch on Indonesia’s capital flight so how come they want to invest so heavily in Indonesia. The Big Brother USA wasn’t even pictured in this. I guess those squabbling might have brought in something for Indonesia, huh..

  2. avatar WP says:

    I think Patung’s source missed Saudi Arabia. In 2004, their investment was 3 billions USD. So BKPM just accidentaly overloked it for 2007 huh? Tsk….

  3. avatar Sputjam says:

    Dragonwall said:-

    I thought that everyone was saying that Singapore lynch on Indonesia’s capital flight so how come they want to invest so heavily in Indonesia. The Big Brother USA wasn’t even pictured in this. I guess those squabbling might have brought in something for Indonesia, huh..

    The singaporeans are probably giving back the bones after the meat had been chewed. Luckily they didn’t swallow the bones as well.

    On a more serious note, the richest countries in the world are benefactors of FDI’s, this include US and UK (1st and 2nd worldwide). Australia gained most from influx of immigrants from various parts of the world, including from singapore/Malaysia, where migrants bring in their hard earned savings and boost local economy.

    Singapore has the 2nd highest rate of citizens/1000 quitting for other countries, losing out to Timor. Hence in order to balance the lost, singapore has indlge in massive recruitment of foreign expatriates and profesionals by giving them easy access to permanent residents status and citizenship.

    If Indonesians liberalise their economy, culture and thoughts even further, they will gain even more benefits from free flow of investments and new ideas.

  4. avatar Dragonwall says:

    I am not done yet. Any country have the right to make their offer for people to become a citizen if they fits the categories as sought after by the census.

    It is also the rights of their citizens to choose a place of domicile and noting that Singapore is alrady a saturated marketplace where people who wants to expand or profess into a bigger market have their rights to migrate, similarly if they meet the criteria as sought after by the migrant country. UK, US Australia no difference.

    But I bet you one thing that is Indonesia can be liberalize and open the citizenships for free and you can see no takers. So before you say some country have chewed all the meat, reflect yourself right in front of the mirror an know what you are referring to.

    Singapore is a nation that everyone knows has no natural resources and her main expertise is seeking investment elsewhere and or provide a haven for investors in high tech. Any other investment that requires extensive land mass will not be in Singapore.
    So what are you boning about?

  5. avatar Sputjam says:

    Dragonwall said :-
    Singapore is a nation that everyone knows has no natural resources and her main expertise is seeking investment elsewhere and or provide a haven for investors in high tech. Any other investment that requires extensive land mass will not be in Singapore.

    Singapore has no natural resource but sit smack right in the middle of the malay archipelago and was built by the british. Location! location! location. If the acehnese had not rebelled against the dutch, Bandar aceh could have been transformed into another entreport trade like singapore, attracting businesses from west coast Thailand, Myanmar, bangladesh and east coast India like Penang once did.

    Unlike singapore, the Malaysian government decided to curtail businesses in Penang(most probabaly due to overwhelming chinese majority on the island) by backtracking on colonial education and legal infrstructure and free trade status. Even during its height, before Malaysia merdeka in 1957, penang was only a shadow of singapore. Even P Ramlee, the famous malay actor, had to migrate to singapore from penang to be a star.

    On the one million pemanent residence and new citizens coming into singapore, even the locals have a grudge against them, even if they are from PRC. (People’ republic of china-same race). So imagine what the scene was like when malay peninsular had a chinese majority, and the local malay feelings to see their country being overwhelmed by foreigners. Mind you, the recent migrants was not like the ones that sailed with admiral cheng Ho, who were from the Royal court of China, but peasants, with bad manners and attitude to boot.

  6. avatar Dragonwall says:

    Location, Location, Location. So what’s wrong! Singapore got lucky, Malaysia didn’t so was Aceh. You see even P Ramlee took the Initiative of moving from Penang and you didn’t?

    Malaysia has a malay majority that was why Singapore was segragated from them because they didn’t want the influence.

    If these migrants were peasants with bad manners and attitude will they be taken in by the Singapore Government? For them to be part of the professional work force? And you mean that Singapore has one million PR? Where the figures came from? You! And you even said the locals have a grudge against them? If you work in the hospital as a nurse, will be hawker be having grudge with them?
    I think you were getting bias information form here and there and piece them together. Looking into all your postings I guess you make a good ‘make up’ historian or copy-writer. And you can’t even see straight with those marked in bold.

  7. avatar TheWrathOfGrapes says:

    /// Singapore has the 2nd highest rate of citizens/1000 quitting for other countries, losing out to Timor. Hence in order to balance the lost, singapore has indlge in massive recruitment of foreign expatriates and profesionals by giving them easy access to permanent residents status and citizenship. ///

    Sputjam – you can’t argue through both sides of your mouth and you shouldn’t speak with a forked tongue. On the one hand, you argue that many are emigrating from Singapore. And then you made it sound like it is a crime or somehow dishonourable for people to immigrate into Singapore. That Singapore has to indulge in massive recruitment of foreigners. No such thing. No, these foreign professionals and expats are not the idiots you made them out to be. They were not arm-twisted or forced at gun-point to migrate to Singapore. Bottomline is, there are many more people taking up Singapore citizenships than those giving them up. The net result is that Singapore’s citizens and PRs suddenly ballooned to more than 4.6 million.

    When you talk about migration, you should talk about net migration – that is immigration minus emigration. Look at the UN table in the link below – Singapore is among the top 10 in the world – that is, more people are coming to Singapore than leaving Singapore.

    http://www.un.org/esa/population/publications/2006Migration_Chart/2006IttMig_chart.htm

    http://www.geographyiq.com/ranking/ranking_net_Migration_Rate_dall.htm

  8. avatar Sputjam says:

    I think I have been misunderstood.

    Previously, Singapore was mentioned as “The destination” for FDI’s and professionals. What was not mentioned was that many citizens of singapore are leaving the country for better lovelihood elsewhere.

    Based on feedback received in blogs, there seems to be some resentments against the PRC and Indian nationals being offered citizens and PR’s(permanent residence.). Reason for this is –

    a) For PRC’s- inability to speak english proficiently.
    b) For indian nationals,- they are replacing citizens, at a lower cost, and does not have to contribute their time in national service, which means, as far as multinationals are concerned, can be employed more efficiently.

    So it is true that more people are coming into singapore, but at the expense of their citizens who are born and bred there who had to serve in the nation’s armed forces.

    As for P. Ramlee(family originates from aceh), he moved from Penang to singapore, when shaw brothers had a studio there. Unfortunately, shaw brothers relocated their productions to Hong Kong and the era of great malay movies in malaya ended, and P ramlee and many other actors returned back empty(There was nothing in Malaya except rubber trees and tin mines). The war with CPM (which some chinese in malaya considered as their army) was on going, and situation seems touch and go, with stability given by the commonwealth forces.

    To understand why singapore was kicked out of malaysia, read ousted by keith patricks, who was a malayan and migrated to australia because couldn’t take the excessive communal politics.

    I am unsure Indonesian citizenship is worhtless or not sought after. Afterall, there have been major migration towards the malay archipelago from various parts of asia(but not the other way round, i.e. malays going the other direction). So you will find chinese and indians and middles eastern in indonesia as citizens (but unsure if they are given similar rights to pribumis). Even europeans found the malays easily handled and maniplated for their benefits. If the weather had been suitable, am sure even the europeans would have migrated in their millions to indonesia.

  9. avatar Dragonwall says:

    To understand why singapore was kicked out of malaysia, read ousted by keith patricks, who was a malayan and migrated to australia because couldn’t take the excessive communal politics.

    You seemed so eager with your trigger happy with words when commenting on Singapore by saying “Singapore was kicked Out of Malaysia”.

    The 2 leaders were classmates and they didn’t meet eye to eye on the topic of managing Malaysia that is the main topic . The Malay leaders didn’t want their majority of Malays being influenced by the Chinese that is number 2, They felt that Singapore has no natural resource and whereas Malaysia has so they have intention not to share with Singapore, so why must Singapore bring out money to pump into Malaysia state coffer? This can be seen with such transparencies that whenever there arises a situation, the Malaysian threatens Singapore by cutting off the water supply.

    You may want to take side because they are one of your kind who is always whinning and blaming Singapore for all the mishap that happens to the Malays or pris. Outright speaking you have placed yourself in a very prejudicial and bias position in making your comparison and analysis. And that will make you a better person? The answer is a big NO.

    When a Singaporean migrates to another country, they have made very careful plannings before setting foot on another country. Whereas those coming into Singapore are those seeking security, safety, and the areas where they can expand. Examples like film stars coming into Singapore because there is a big market. Nurses, doctor, professional people in the international market who heard of the reputation of Singapore being an international hub for airlines and businesses.

    You have not in any way proves the facts but drop a little of this a little of that in making your comments. People are only interested in what the situation is in this real world and not living on past glories.

  10. avatar TheWrathOfGrapes says:

    To understand why singapore was kicked out of malaysia, read ousted by keith patricks, who was a malayan and migrated to australia because couldn’t take the excessive communal politics.

    Yes, Keith Patricks left Malaya because he could not stomach the excessive communal politics. That should have given you a clue as to the real reason for Singapore’s separation from Malaysia – excessive communal, and I should add, racial and racialist, politics, in particular from the UMNO ultras.

    UMNO wanted a Malay Malaysia, whereas Lee Kuan Yew wanted a Malaysian Malaysia. Now, you tell me who is indulging in communal and racial politics.

    http://en.wikipedia.org/wiki/Malaysian_Malaysia

    SINGAPORE’s separation from the Federation of Malaysia can be traced back to the long drawn out and acrimonious proceedings leading to the 1963 formation of Malaysia.

    The seeds of discontent from the disagreements between the two governments sprouted into major crises during the short-lived merger between Singapore and the Federation.

    One of the toughest items was related to citizenship provisions that maintained a differentiated citizenship for the people of Singapore and of the Federation.

    Political opponents were critical of Singapore leader Lee Kuan Yew because the Tunku was determined not to grant equal Malaysian citizenship rights to Singapore. Singaporeans who were Malaysian citizens could only vote in Singapore and not in Peninsular Malaysia and only for Singapore’s 15 seats to the Malaysian Parliament. And only those born in the peninsula could stand for elections in Peninsular Malaysian elections.

    Tunku was fearful of the political repercussions in the mainland if he granted the vote to an additional one million Singapore Chinese.

    http://www.malaysianbar.org.my/echoes_of_the_past/the_separation_of_singapore.html

  11. avatar Sputjam says:

    I think communal racial politics in malaysia/sngapore was not an UMNO issue, but both the two biggest community In malaysia and singapore were playing up this issue.
    How else could some chinese community insist that the british cede malaya and singapore to chinese rule(yes from beijing). And who the hell was CPM(Communist party of malaya) fighting for, if not for chairman mao himslef.

    maybe to make any sense of all these, we may have to study recent happenings in two south america states. In both these countries, a pribumi was elected into power for the first time. Hugo Chavez and Morales of bolivia. Both are of ethnic indian(Maya) descent. The immediate effect was for both of them, whether their action was good or bad, to divert and gave more power to their ehtnic brehtren, and thereby making many of those from european stock to feel that their plight have been ignored.

    The pribumis thingking and those from immigrant races are always not synchronised. Immigrants wants more trade and investment, pris wants to protect their heritage and culture at the expense of businesses. It is a worldwide phenomena.

    another place that may excite some sociologist, maybe in southern africa states of zimbabwe and now, i think similar experience may happen in south africa.

    I think, where states have sizeable diverse communites, It is best for minorities to rule, instead of the majority. Minorities, I mean, not the second largest dominat community, but maybe from a population that consist perhaps only 5 %, like the eurasioan communities, or perhaps the ibans in malaysia. majority rule does not work in diverse communities, but it may be suitbale in single ethnic entities, like japan, korea and china.

    as for indonesia, I am unsure if it is a diverse community, or a single entity. malay is widely spoken, but the power brokers were all from the island of java except for a brief moment. i think, for some reason i am not able to comprehend, ethnic chinese in malaysia and indonesia are always considered as outsiders. If malaysia is taken as an example, there seems to be two parallel form of culture co-existing. diffenret language, lifestyle and eduactional system. it was, like i mentioned before,only under a different system, created by the british, that both these two dominant races seems to unite.

    On Lee kuan Yew’s malaysian malaysia, and after examining the situation in singapore, I think his policy statement clearly does not reflect the happenings presently in singapore. Even he has to consider which community may threaten the present social fabric of the dominant society, and may decide not to employ certain communtiy from positions considered security sensitive. Maybe 15 years ago, singapreans were able to understand the malay language, but today, forget it. It is actually turning into another chinese city. If you cannot converse in mandarin, you get an annoying stare.

  12. avatar TheWrathOfGrapes says:

    Now I see where you are coming from. Pribumi and bumiputra. As long as you are hung up on such concepts, then it is futile to discuss further. This is exactly what is happening in Malaysia right now. Somehow the Malays have taken upon themselves to declare they are the “sons of the soil”, despite the fact that they are also immigrants. The real natives are the Sakai, Negritos etc – the Orang Asli. Funny that Indians and Chinese who have settled in Malaya and Malaysia for centuries are still regarded as pendatangs, whereas 1st and 2nd generation Indons immigrants are regarded as Bumis. This is all to do with kulit-fication – it is racial, nothing more.

    When will Malaysia and Indonesia grow up and join the rest of the world. Bumiputras and Pribumis do not “own” Malaysia and Indonesia respectively. The other minorities in those countries who have been given citizenships and who have settled for generations are equal citizens, no more, no less. They are in the country not at the will and pleasure of the pribumis.

    I don’t think we will see eye to eye if you insist that only pribumis are the rightful citizens, to be given all kinds of handouts and that the rest of the citizens are leeches…

  13. avatar Dragonwall says:

    I guess it say once, say all on this.

    When will Malaysia and Indonesia grow up and join the rest of the world. Bumiputras and Pribumis do not “own” Malaysia and Indonesia respectively. The other minorities in those countries who have been given citizenships and who have settled for generations are equal citizens, no more, no less. They are in the country not at the will and pleasure of the pribumis.

    Well place WrathofGrapes.

  14. avatar Sputjam says:

    Wrathofgrapes hallucinated-

    I don’t think we will see eye to eye if you insist that only pribumis are the rightful citizens, to be given all kinds of handouts and that the rest of the citizens are leeches

    I have never mentioned this. All the statements I gave were based on historical facts. Unless there is an error, then you can rightly point this out. As for handouts, I believe, the country of Malaysia have began dismantling the New economic policy. In indonesia, there was no affirmative policy to begin with. The most succesful business men of malaysia and indonesia are disguised as malays but originate from india or the middle east, taking advantage, like the europeans as stated previously (

    Even europeans found the malays easily handled and maniplated for their benefits

    ).

    wrathofgrapes and dragonwal agreed that :-

    When will Malaysia and Indonesia grow up and join the rest of the world. Bumiputras and Pribumis do not “own” Malaysia and Indonesia respectively. The other minorities in those countries who have been given citizenships and who have settled for generations are equal citizens, no more, no less. They are in the country not at the will and pleasure of the pribumis.

    Genetic studies indicate that the maoris originate from the alisan(taiwan) and several words in maori and alisan still rigs a bell with modern malay words such a tlinga(ears) mata(eyes), aku(me, mine) etc.

    Somehow, the malays stop globalising and retired. It was the rest of the world that decided to migrate into the malay archipelago.

    If malays are not pris and bumis in the so called malay archipelago, then the chinese should be called africans, based on “out-of-africa” theory (disputed by some chinese archeologist until genetics proved correct.)

    Questions must be asked why is it that migrants from india and middle east, the first chinese settlers and even the europeans, found it easy to intermingle with the malays which the later chinese migration found it so difficult. Even the babas and nonyas abandon their culture and embrace nationalistic chinese culture.

  15. avatar TheWrathOfGrapes says:

    Wrathofgrapes hallucinated-

    Yes, Sputjam – from the toxic fumes that you have been emitting.

    Please jam your spit…

    ;)

  16. avatar dewaratugedeanom says:

    Sputjam said

    “¦ for some reason i am not able to comprehend, ethnic chinese in malaysia and indonesia are always considered as outsiders.

    Just compare the comments – content and style – of pribumis and Chinese in this blog, and you might get a clue why they will never be cocok. ;-)
    But you made a valid point in stating that where states have sizeable diverse communities, it is best for minorities to rule, instead of the majority.

  17. avatar Dragonwall says:

    Even he has to consider which community may threaten the present social fabric of the dominant society, and may decide not to employ certain communtiy from positions considered security sensitive. Maybe 15 years ago, singapreans were able to understand the malay language, but today, forget it. It is actually turning into another chinese city. If you cannot converse in mandarin, you get an annoying stare.

    I would say this is gross misrepresentation of facts. BTW how well do you know Singapore?. To Singapore and referring to community threats to the present social fabric of dominant society has never been a found fact. In those years you may want to say that the security is the ulterior motive for a new government that had just broken away from the predominantly Malays.

    And to consider to say Singaporeans has forgotten the Malay language, tell me which part of Singapore have you been! Don’t forget that the schools still teaches the Malays language. Of course when they are at home or with friends they feel more comfortable speaking their own lingo.

    And in getting an annoying stare like what you have said, then it is like when the duck does the chick walk, then duck talks cock.

    But this will also sum you up that you are as discriminative as you are from the start.

  18. avatar Sputjam says:

    Let face it. As far as singapore in concern, only the older generation speaks malay. Whether malay is still taught in schools, I do not now. But based on what is spoken in singapore, some malay words are used in hokkien communications, such as suka-suka, Tidak apa, mata-mata etc. But it so happens that the recuers sent by singapore to aceh after the Tsunami were unable to cmmunicate with their indonesian counterparts. Therefore, I can say that present day youngsters do not speak malay.Nothing wrong with that of course. Because malay is not the dominant factor in singapore.

    Coming back to FDI’s in Indonesia, there is no point in excavating natural resources, as all that money will not reach the area where the resources are extracted, unless hefty local taxes are introduced.

    main beneficiary of natural resources extraction are the financial centres worldwide,of which singapore is one of them them. hence, you may get timber from Kalimantan, but money from that timber will not return, unless local authority tax the export value from the area. The only beneficiary will the be local woodcutter who works for the timber company. Upon clearing the and, he local govenrment may lease the land to palm oil planters. Again only local plantation workers may benefit, as it may take several years before fruit extraction and revenue

    Numbers from these businesses may look good, but in reality, only a small percentage of that will reach the local population and economy.That is why, many indonesian are asking, where have all that money from natural resources have disappeared. Most likely, it is stored in fnancial centres worldwide, plus another smaller portion may be in jakarta, for main office use, such as paying salary of their marketing people and executives.

    Is it worth the investments if the benefit to local economy is only so little, whilst the movers and shakers, the industrial captains are wheeling and dealing with overpaid bankers and investment managers based thousands of miles away. These are the guys who are making the big bucks.

  19. avatar Dragonwall says:

    1. When the rescuers sent to Aceh does not necessarily have to be language
    equipped. It is the efforts that counts. Were you there during the tsunami? And
    were you at the site when those rescuers were there. If Indonesians needs the help
    they should have make the efforts to have people to assist those (who like to speak
    their own language) to ensure the receiving end were well interpreted and informed.

    2. So much for your timber. as far a Singapore is concern there isn’t any timber
    arriving in Singapore. During the frenzy years of brisk timber business in Indonesia
    commencing the hands of people like Bob Hasan, timber already started to dwindled.
    You might need more research into this as most of them went as far as America and
    Canada so that you know because the price there were much sought after by the
    Indonesian exporters. So where the money are right now?

    3. The timber concessions in Kalimantan were up for grabs in the late 80s when many
    were contemplating and reluctant to go into it because the government wants
    investors to open the roads from south to north of Kalimantan. No one without any
    benefits will invest in such deforestation investments. Considering the time of
    logging and the time spent on road building, the in off was far too wide to make up
    on ROI. so tell me will you invest 100 to make 1?

    While with one of the Yayasan, we saw were involved in several of the timbers concessions that went to Malaysia, just over the border. These are locally registered Indonesian companies with no foreign investment with offices in Samarinda and other parts of Kalimantan

    And for you to say

    the industrial captains are wheeling and dealing with overpaid bankers and investment managers based thousands of miles away. These are the guys who are making the big bucks.

    you sure know sh*t about banking, economics, investment and forestry business.

    Go asked Bob Hasan where all those timbers, log, cane went.

  20. avatar Sputjam says:

    I have to say that when a topic is put up for discussion, the matter should be debated rationally, rather than emotionally.
    1) While it is true that assisting the people of aceh is a credible effort, I am highlighting the fact that malay language is irrelevant to younger singaporeans.
    2) Financial centres, worldwide does not require resources to benefit. The money obtain from resources will eventually end up in financial centres worldwide.
    3)Timber that was smuggled into Malaysia was probably sold to timber factories there, saving transportation and other logistics nightmare. But my point is that, the locals, i.e. people who reside where the timber was exploited did not receive the benefit of their resources being extracted. Conclusion, many dwellers where the forest was felled, obtain a barren land.

    Wouldn’t it be better for the government, instead of depending on private investors to exploit natural resources, instead spend some money in research, and educating locals on how best to exploit the natural wonders that nature provided. Is building of roads through jungles more beneficial for the few who does not drive, or using planes fitted with floats better, whereby rivers and lakes form a natural airports. Of course, it is to late now, as local governments are bending over backwards turning once pristine jungles into huge plantations.

    on the quote

    Go asked Bob Hasan where all those timbers, log, cane went

    The money is probably stored in some financial centres somewhere. Nothing is returned to the place where the resources is exploited. That was what I have been explaining all along.

  21. avatar Dragonwall says:

    The point is that everyone keeps saying that all those ill gotten money were being deposited into Singapore and that Singapore is thought to be one of the safe haven for illegal money which in many ways people says the Singapore Government are condoning.

    The Indonesian Government does not have any money anyway to open up the north south and she could only depend on investment. Investment does not have anything to do with social welfares whereas the government does. And it is through investment that the investor will benefit, dwellers benefits, government benefits. How much the government gets will see how the officials is whether he/she is competent, loyal or corrupt.

    You don’t mix rice into soup and called it bubur.

  22. avatar Sputjam says:

    Singapore, unfortunately, is suspected as being a money laundering centre by many countries, including US and european union.

    Indonesian govenrment is too slow in building infrastructure, particularly in java and sumatra. java, an island of 120million is still not connected by good highway/rail infrastructure. sometimes it is not prudent to wait for investments to come in first before improving on basic needs. If govenrment is unwilling to borrow and pump money for the benefit of the country, then there will be no improvement, and investment will not increase by a significant margin.

  23. avatar Dragonwall says:

    There has never been a single country in the west that dare says Singapore is the center for money laundering.

    Singapore offers only investment opportunities and portfolios so where the money comes from Singapore Government will not be interested as long as they are ebing transfered or wired into the country and that is legitimate because the government could trace that back to where it originates. I suppose that is the key element of a proper banking system.

    How he got the money from is of no concern to any government unless, like I said before, if you can show proof that the money is ill gotten you could be rest assured that the Singapore Government will not sit there waiting.

    Unless and otherwise proof of guilt is presence such suspicion has to be dismiss as groundless.

  24. avatar Sputjam says:

    I have to say that switzerland used to be the centre for money laundering worldwiide. Public outcry that corrupt leaders and officials in the third world had used its banking secrecy act to their full advantage. even CIA and their europeans counterparts used switzerland for espionage operations. Didn’t the nazis hid their wealth in swiss banking vaults?

    The swiss, under pressure from various sources, have decided to disclose certain transactions involving corrupt money from poor countries, such as congo and phillipines.Due to this their reputation is ruined as a secret place to hide ill gotten gains.

    And then came singapore with their banking secrecy laws…………….
    allegations of money laundering made against singapore came as recently as last year with the myanmar crackdown on dissident monks.drug money made in cahoots with the generals are believed to be parked there.even the international banking arm of credit suisse have moved its headquarters to singapore.

    I believe the mushrooming of private banks in singapore will only encourage more of such activities. And by the way, not all money are wired or electronically transffered.

  25. avatar dewaratugedeanom says:

    Sputjam said

    The money is probably stored in some financial centres somewhere. Nothing is returned to the place where the resources is exploited. That was what I have been explaining all along.

    This is the way it’s been done all over the world, Sputjam. Rob the locals of their real wealth that they don’t appreciate anyhow, and give them cell phones so they can show off and send each other SMS happily ever after.

  26. avatar Dragonwall says:

    have to say that switzerland used to be the centre for money laundering worldwiide.

    This I agree fully with you as well as Luxemburg, and european countries. But Singapore is a big no. And as to myanmar drugs cahoots that is all bullsh*t. Not drug money were ever laundered in Singapore. Some swiss banks and other banking joining the rank into Singapore is because of her reputation of a clean banking systems so they want to move there to avoid and fingers pointing to them saying that their bank is crooked. So when you analyze a bank’s move into a country you have to weigh both sides and see which side weighs heavier and not reports from media.

    Media is a center to distort the public whereas TV’s media is to distort our vision. Whereas teachings in any form is a form of indoctrination.

    Like what dewa said

    give them cell phones so they can show off and send each other SMS happily ever after.

  27. avatar Sputjam says:

    Anyway, my point is that if indonesian govenrment neglect investing in infrastraucture, like higways, bridges and railroad, do not expect to see huge increase in FDI’s. Fpcus should be in java and sumatra (including riau islands).
    other form of inward capital flow could be to attract qualified foreigners to live and work in places such a bali and lombok. These foreigners could be retired proffesionals and businessmen, which could be made to serve in local educational establishemnt for long term PR or citizenship. there are many retired folks from japan, US and europe who are scouting for reasonable places to live in golden years. They may as well impart some knowledge and know-how to locals, if they are allowed to stay there.
    In some places such as riau islands of batam and bintan, some govenrment input may be neccessary to establish a shipbuilding/offshore rig construction centres, by employing these oldtimers as advisors. sometimes, you need govenrment push before the industry can kick-start. That push includes money and political will in order to overcome obstacles that may appear.
    A lame govenrment hoping for private enterprise to initiate huge ideas will be doing just that. Hoping.
    how did japan start their industrial process, if not for the their govenrment’s push for industrialisation. same with korea. In europe, if one country had invented a flying machine, the rest of europe will follow, as govenrment are scared of being left behind in technological field, due to mistrust and war mongering.
    Like I said before, immigrants have been landing on indonesian shores for milleniums. Trouble is, nowadays, it is difficult for would be immigrant to be a Pr or citizen due to present govenrment policy. If these hindrance is lifted, there will be many who will head again to indonesia.
    Look at australia. new immigrants are actually financing theior economy. they bring along their expertise and money that was saved into australian economy. Indonesia should emmulate this policy.

  28. avatar dewaratugedeanom says:

    @ Sputjam.
    Kudos for your common sense. You should become an advisor for the government. :-)
    But will they listen to reason, biased as they are?

  29. avatar Dragonwall says:

    if indonesian govenrment neglect investing in infrastraucture, like higways, bridges and railroad

    Indonesia did not neglect in investing in their infrastructures. In fact they have over invested. The only exception is that those project who were well funded by the government was being ‘sunat’ from the start causing shortage of funds or additional funds to what they said, inflation, short calculated all sort of nonsense. Thus more and more inferior quality materials were place and constant repairs was needed.

    A close friend of mine build the Merak toll. He also suffered the same fate when working with TS. How as the condition of the toll?

  30. avatar Sputjam says:

    Dragonwall said –

    Indonesia did not neglect in investing in their infrastructures. In fact they have over invested. The only exception is that those project who were well funded by the government was being ‘sunat’ from the start causing shortage of funds or additional funds to what they said, inflation, short calculated all sort of nonsense.

    For an island such as java, there should have been a well developed higways and railways stretching from one end to the other twenty years ago. same with Jakarta’s drainage/irrigation and public transportation such a subways.

    I can only come up with one reason why the infrastructure development is so bad. Tax collection is dismal. Nobody will pay up unless they see improvement, and government is unwilling to borrow thinking that investment in such projects are waste of money.

    So today, jakarta is sinking in preriodic floods, Highways are clogged everyday single day and all industries are stuck in jakarta as there are no well designed highways for the population and industries to spread out, making more rural people to go look for work in an already crowded city.
    Due to this, foreign investors will find that jakarta is impossible place to live and work. Look at China. They are building bridges/highways/railways everywhere. Some of the bridges are so huge and long that the golden gate is miniscule in comparison.

    Investing in projects that benefits the citizens and nation is never a waste of funds, even if the initial cost is prohibitive, and the person in charge is sincere in the project. In the long run, all the money spent will be recouped by other means.

    If your friends are having financial difficulty in operting the toll, the govenrment should nationalise with a just compensation paid to the owner of the toll. Only govenrment can create a succesful highways/railway programme. Private entrprise should concentrate on making smaller but numerically superior deals.

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