North Sulawesi tries to lure U.S. investors

Business and Investment - May 31, 2001

WASHINGTON (JP): Officials from North Sulawesi held an investment forum here on Tuesday to lure American investors to invest in the natural resources-rich province.
Mayor of Manado Wempie Fredrick said that the North Sulawesi offered several important investment areas such as in agroindustry, fisheries, and mining.
"We are here to inform people about the potential of North Sulawesi," he said at the forum held at the Indonesian embassy.
Although many foreign companies have often complained about the locals' resentment against their operations, North Sulawesi Police chief Brigadier General Erald Dotulong said that the province "is one of the safest places in Indonesia."
He said crime in the province was very low. He added that social and political unrest, which have hit many parts of Indonesia, was almost unknown in the province.
Several foreign mining companies including the U.S.-based Newmont Corporation and Australia's Aurora Gold, already have operations in the province. However, the companies have often become the target of the local people's protests.
Newmont Minahasa Raya, which has been widely criticized for allegedly causing pollution, announced recently that it would close its gold mining operation in the area. But the company said that the planned closure was not due to the local residents' resentment but rather because of the depletion of the company's gold reserves.
Aurora's subsidiary Meares Soputan Mining also said it would quit the province as the local administration had failed to curb illegal mining operations in its gold mine concession. The province's head of research and development, L.W. Sondakh, said the case of PT Newmont Minahasa Raya was unique. He said North Sulawesi preferred a good environment to high economic growth. But he said that North Sulawesi was not against mining.
"Newmont needs to make adjustments, including the revenue-sharing system. Please stay on, but please adjust to the new era," he told the forum.
Dotulong said conditions at Newmont were calm. "The company is operating normally now," he said. He added that the unrest had been provoked by some local and international non-governmental organizations.
Kawanua USA organized the business forum. Kawanua USA is a group representing people from North Sulawesi who now live in the United States.
Kawanua chairman Emile D. Mailangkay said the group would attempt to hold the business forum every year. "Next year, we will hold the forum in Los Angeles," he said.
According to the Indonesian ambassador to the U.S., Dorodjatun Kuntjoro-Jakti, this is the first time the embassy had held such a promotional function for a province.
Newmont Minahasa Raya provided guests with lunch. No one from the company addressed the forum, however. (Yenni Djahidin)