Oil and mining investors determined to keep businesses going in Indonesia

Jakarta - Several leaders of foreign major oil, gas and mining companies stated on Friday that they would keep their investments going in Indonesia despite the rising anti-U.S. sentiments in the country, while there are fears that at least three mining firms will relocate their operations to other countries if the current situation does not change.

BP Indonesia president Bill Schrader said in a meeting held by Castle Asia and Indonesia?s oil and mining society Bimasena that the firm would not pull out from Indonesia because of the worsening security in the country. The company had not evacuated its expatriate employees Indonesia since the U.S.-led troops attacked Afghanistan?s military facilities.

Freeport Indonesia president director Adrianto Machribie said that the situation was still under control so that they would not evacuate its 200 expatriate workers from Indonesia.

?Since 1966, Freeport has invested US$5 billion in Indonesia. There has been an annual increase by $200 million on average. This year we have materialized what we had planned, and the same thing will happen next year,? Machribie said.

Meanwhile, the spokesperson of Devon Energy, Erwin Lebe, said on the same occasion that it would fulfill its commitments of investing in the gas sector in Jabung, South Sumatra.

?Indeed, the day after the U.S. attacked Afghanistan we closed our office for one day. But it was merely an anticipatory measure, because after that we resumed our normal activities,? Lebe said. There were 30 expatriates working at Devon Energy, he added.

However, the chairman of Indonesian Mining Association, Benny Wahju, said that at least three mining companies might have to relocate their Indonesian operations because of the deteriorating security in the country. The three were PT Citra Palu Mineral which is owned by Newcrest, PT Gak Mineral (Bhp), and PT Weday Bay which is jointly owned by an Australian investor and PT Antam.

?If this happens, an investment of US$3.5 billion would flee Indonesia,? Wahju noted.

In Friday?s meeting, British Ambassador to Indonesia Richard Gozney said that the situation in Indonesia was still under control so that they would not evacuate his staff.

British entrepreneurs would continue to do business in Indonesia, Gozney said, adding that several business delegations from Britain had arrived in Indonesia and was taking part in a business exhibition in the capital.

The ambassador called on the police to take strict measures on protesters who hunted down American citizens and others in Indonesia. But, he added that most of the protesters were not really aware of what they were fighting for.

The meeting was also attended by foreign minister Hasan Wirayudda and coordinating minister for political, defense and security affairs Susilo Bambang Yudhono. They told participants in the meeting that the government would increase its efforts to protect foreign assets and citizens. (arry)