Foreign Investment, Love and Hates Collides

A large oil field project started by Exxon Mobil in Cepu, East Java, Indonesia, last week. This project was became a major controversy, when several government officials stated that completing the project was a priority in developing country’s economy and attracting foreign direct investment (FDI).

Another story, US-based mining companies in Indonesia such as Exxon Mobil, Freeport and Newmont have been the main target of critics, peaceful and bloody protest across the state.

Freeport holds more than 90% shares in the largest copper mining in the world located in Papua, I could understand. But Exxon with only 45% shares in the giant Cepu oil field and Newmont with the same 45% shares in Batu Hijau, Sumbawa gold and copper mining also feels the heat.

Ideally, foreign investment should create more benefits for the host country. However, the benefits will become a fact if the host country has well-defined investment policies, and of course applying the policies transparently and properly.