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UK mining company challenges Indonesia
Latest list of Indonesia’s richest people released
Indonesia to host ASEAN entrepreneur summit
Churchill Mining, a coal mining company based in London, is threatening to take Indonesia to international arbitration. Churchill claims that its legitimate claims to a multibillion dollar coal discovery in Kalimantan have been unlawfully taken away by a rival company, supported by the local government and the courts. Churchill has written to the Indonesian President, Susilo Bambang Yudhoyono, asking him to intervene but in the absence of an ‘amicable resolution’ are determined to take the matter further. The dispute offers a cautionary tale to companies looking to invest in Indonesia’s booming commodity sector and may affect the country’s drive to lure more foreign direct investment.
The business magazine Globe Asia has released its 2011 list of the richest individuals in Indonesia and there’s a new name at the top. Eka Tjipta Widjaja, 88 year-old founder of the Sinar Mas Group, is worth a reported $12 billion; an amount tripled from this time last year. He overtook Budi Hartono, CEO of the Djarum cigarette company, whose fortune is estimated at $11.5 billion.
The pristine sands, swaying palms and landscaped mega-hotels of Bali’s Nusa Dua, favoured by honeymooners and well-heeled sun-seekers, will in July welcome a different kind of visitor. Movers and shakers from around the region will descend on the Grand Hyatt hotel for the ASEAN Regional Entrepreneurship Summit. Business leaders from ASEAN countries, India, China and Japan are expected to attend to soak up the sun, enjoy a touch of Balinese hospitality and hear speeches from the likes of Hillary Clinton, US Secretary of State, and the chairman of Google, Eric Schmidt.
With a population of around 25 million people, Jakarta and its surrounding satellites make up one of the largest urban areas in the world. The Indonesian economy is enjoying healthy growth rates and one of the fruits of the boom is an increased demand for air-travel, particularly from the growing middle class, fueled by the expansion of low-cost carriers in the region. Unfortunately, Jakarta’s airport has failed to keep up with the increase in numbers, lacks adequate facilities, and has become a time-consuming and frustrating entry or exit point. However, the Indonesian government has just granted the state airport operator Angkasa Pura II permission to expand the capital’s airport, with construction scheduled to begin next year.
Research in Motion (RIM), the Canadian-based company behind the Blackberry smartphone has decided to open a factory manufacturing the device in Malaysia rather than Indonesia; a decision that has annoyed some Indonesian officials and business leaders and could prompt retaliatory tactics from the Indonesian government.
It could be a plot from a taught political thriller. There’s an increasingly bitter and dirty campaign being fought in Indonesia against the environmental NGO Greenpeace which is facing increasingly stiff opposition to its battle against deforestation from certain elements within the Indonesian government allegedly prompted by shadowy business interests. On October 13th John Sauven, the Executive Director of Greenpeace UK was denied entry to Indonesia at Soekarno-Hatta airport in Jakarta despite having previously secured a visa from the Indonesian embassy in London. A week later, a second activist, Andy Tait was deported by immigration authorities leading Greenpeace to denounce the Indonesian government as looking to ‘undermine its work in stopping deforestation’.
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