Economy & debt

Down to Earth No. 73, May 2007

The Indonesian parliament passed a new investment law in March, despite strong civil society opposition and despite much concern over its implications.

Down to Earth No. 73, May 2007

The giant copper and gold mine operated in West Papua by US-based mining company Freeport McMoran with substantial investment from the British multinational Rio Tinto has been under scrutiny once again.

The Freeport-Rio Tinto mine has been the subject of protests at local and national level in recent months. At the local level, thousands of Papuan workers at the mine went on strike for four days. Facing hundreds of military and police, they successfully demonstrated against discriminatory employment practices.

Down to Earth No. 72 March 2007

CGI creditor group disbanded

Indonesia's creditor group, the Consultative Group on Indonesia, has been disbanded after President Susilo Bambang Yudhoyono said it was no longer needed. The January announcement was officially welcomed the World Bank, former CGI chair and one of Indonesia's three main creditors alongside the Asian Development Bank and Japan.

Down to Earth No. 72 March 2007

Two significant changes to national regulations on mining are due to affect the mining industry in Indonesia. The mining minister, Simon Sembiring, said recently that the Indonesian government was intending to approve laws to ensure that more of the mineral resources mined in Indonesia will be processed within Indonesia rather than be shipped abroad. As well as this, new laws are due to come into force in early 2007 that will strengthen the role of regional governments in assigning and approving mining contracts in their regions.

DTE Factsheet, May 2006

What is FDI?

Foreign Direct Investment (FDI) is an important feature of an increasingly globalised economic system. It occurs when a company based in one country makes a long-term investment in a company located in another country. The 'home country' company may gain partial or total control of the 'host country' company. The direct investor does this by purchasing an existing overseas enterprise, providing capital to start a new one or buying 10% or more of it.

Down to Earth No 68  February 2006

The following report is based on a DTE staff visit to Aceh in December 2005

Looking over the vast expanse of mudflats that stretched to the horizon, I asked where the village had been. The man pointed towards the sea. Apart from the few ragged remaining coconut palms, it was indistinguishable from the land which had been paddy fields and shrimp ponds.

One year on from the December 26th quake-tsunami disaster and the scale of the reconstruction work needed is all too apparent.

Down to Earth No 68   February 2006

Indonesia's Anti-Debt Coalition (KAU) has accused the Indonesian government of lacking any sense of urgency in its post-tsunami reconstruction work. In a statement issued exactly one year after the disaster struck, KAU criticised the government of President Susilo Bambang Yudhoyono for failing to seize opportunities to reduce Indonesia's debt.