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Senior Economist Labels Luhut Pandjaitan 'A Spokesman' for Foreign Investors

13 October 2021 13:32 WIB

Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan arrives at the Directorate of Special Criminal Investigation at the Jakarta Metro Police, Monday 27 September 2021. Luhut Binsar Pandjaitan complies with the invitation from the Jakarta Metro Police to clarify his report against Haris Azhar and Fatia Maulidiyanti regarding the allegations. defamation. ANTARA PHOTOS/Reno Esnir

TEMPO.CO, Jakarta - University of Indonesia senior economist Faisal Basri, in assessing the country’s investments on Tuesday, labelled the Coordinating Minister of Maritime and Investments Luhut Pandjaitan as a "spokesperson" for foreign investors. He argues that the minister often sided with corporations in industrial polemics, one of which is in the mining sector. 

Fasial said there is currently a major polemic in the mining sector which he claims cost the country trillions in economic losses due to the many potential sources of income that are not managed well. He argues mining taxes have failed to be optimized and there are hidden trading transactions.

He believes the government should protect its people and state finances from the risk of losses. One attempt he said could be done is by probing suspected monopsony in the smelter trading practices. 

There are tendencies, he added, for every Indonesian smelter to treat sellers equally, which creates the suspicion of a single buyer and smelters have no other options to sell their nickel products. He argues that the country must be present to protect its people and citizens who are taxpayers.

“If I am the element of monopsony, I would decide the terms and conditions because I am the one and only buyer,” said Faisal on October 12. “Instead, those that are protected are not paying taxes.”

Faisal Basri said those that are not paying taxes not only violate tax provisions but also receive tax holidays. 

He claims to have notified Investment Minister Bahlil Lahadalia regarding this situation and suggests the Ministry to audit tax holiday facilities. Basri also urged the Manpower Ministry to audit employees working in tax holiday recipients. 

“Solve each and every of it. But you know who the person behind this all, which is the person who often defends them, it’s Pak Luhut Pandjaitan,” said Basri.

The Minister With Major Influence 

Faisal Basri believes Luhut has an extraordinary business influence, which he said leads to people likening the Coordinating Minister as a prime minister and a spokesperson for any issue that emerges. 

“I think Chinese corporations don’t need to speak, as Luhut Pandjaitan would suffice as their spokesperson,” he quipped. 

Basri asserts that his assessment towards the Coordinating Minister is not based on personal sentiments as he claims to have been present in multiple Covid-19-related meetings with Luhut and is open to future dialogues regarding this issue. 

Luhut Pandjaitan in previous instances called for people to stop accusing him of always defending foreign investors. He also denies allegations labelling him as a pro-Chinese investments and insists that Indonesia is open to investors from various countries. 

“Do not accuse us of being pro-China. Whoever comes here and meets the requirements are welcome,” said Luhut in a meeting with the Transportation Ministry in Central Jakarta on December 3, 2019. 

Read: Luhut Fills 5 Positions from Jokowi; Spokesman Explains

BISNIS | FAJAR PEBRIANTO



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