Cement and chocolate

Cement and chocolate
28 November 2005

House  of  Representatives’  Commission  VI urged the government to include cement  industry  and  chocolate  manufacturing  sector  in  the Investment Negative   List   (DNI). Nusron  Wahid, Azam Azman Natawijana and Didik J. Rachbini of Commission VI said  the cement  industry and the chocolate manufacturing sector were strongly related  to  the  nation’s  interest  and  should be protected from foreign investors.

Rachbini  said that the national cement industry is now dominated by cartel players  who  fix  prices. Moreover, local investors should comply with the rules  made  by  multinational  cement manufacturers if they want to export their  products.  "The  cement  industry  should  be included in the DNI to prevent  another  foreign  intervention  like  what  happened  in SG," said Rachbini  during  a  hearing with the Investment Coordinating Board (BKPM).

Meanwhile  Azam  Azmam  Natawijana  said  that  cement  industry  should be included  in the DNI since local investors have the capability to invest in the industry, despite of the large capital needed.

M.  Lutfi, Chairman of BKPM, said that the sectors included in the DNI have been  determined  in  Presidential  Decree,  which  only  included  mining, broadcasting and transportation in the DNI. The  Draft  of  Capital  Market  Law,  which  is being deliberated, has not included  the  regulation to add the DNI. "Should the DNI need to be added, there  should  be  an  investment  map to identify the strength of national industries as well as to identify which industries and sectors that need to be   included   in  the  DNI  or  need  to  be  liberalized,"  said  Lutfi.

Published under Cement News