Violence against Burma’s Rohingya people has prompted Indonesia to delay
its efforts to encourage the archipelago’s state enterprises to seek business
opportunities in the emerging Southeast Asian nation.
Indonesia earlier this year
announced plans to establish an office in Burma [Myanmar] to assist Indonesian
state-controlled companies, but State Enterprises Minister Dahlan Iskan on
Wednesday revealed that proposal had been delayed.
“The staff had been prepared and
the office was supposed to be opened last month, but we delayed due to the
Rohingya situation. Hopefully it will open next month,” Dahlan said.
Burma has in the past two years
made apparent progress toward democracy following the two-decade rule of a
military junta. But in recent months, an outbreak of violence in the Rakhine
region in which the local Muslim minority was apparently targeted by Buddhists,
attracted international attention.
Many Indonesian companies have
expressed interest in doing business in Burma, which is in the process of
liberalizing its investment laws to rejuvenate its stagnant economy.
Among the state-controlled
Indonesian companies eyeing opportunities are Bank Negara Indonesia,
construction firm Wijaya Karya, cement firm Semen Gresik and energy company
Pertamina.
Pertamina is keen to access
Burma’s large untapped energy sources. Proven oil reserves stand at 3.2 billion
barrels and gas reserves at 11.8 trillion cubic feet.
Salis Aprilian, president
director of Pertamina subsidiary Pertamina Hulu Energi, said Burma offers an
abundance of opportunities for Indonesian state enterprises because the country
has little infrastructure. “Burma reminds me of Indonesia back in the ’60s,” he
added, referring to the early period of Indonesia’s economic boom funded by oil
and gas exports.
Salis said Indonesia could follow
China’s approach to assisting state companies succeed abroad. “China used oil
companies first, which were then followed by other sectors like
infrastructure,” he added.
Pertamina president director
Karen Agustiawan said her company was planning to expand in Burma, but was
waiting for the United States to lift its economic sanctions on the Southeast
Asia country.
Dahlan, however, stood by
Indonesia’s state-enterprises push in Burma, noting that the United States has
loosened its sanctions.
The US has left in place some of
the sanctions it imposed.
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