The case centers on PT Perusahaan Air Indonesia Amerika (PAIA), a foreign investment joint venture backed by investors from the United States, Singapore and Saudi Arabia, which alleged it had been unfairly treated by state-owned firm ITDC.
Mandalika: A slice of cultural and environmental heaven hidden in Lombok, West Nusa Tenggara. (Photo courtesy of: indonesia.travel.id)
A dispute over a foreign-backed water processing investment in the Mandalika special economic zone (SEZ) in West Nusa Tenggara risks undermining investor confidence, Finance Minister Purbaya Yudhi Sadewa has warned.During a public hearing held by the government’s task force for accelerating economic growth programs at the Finance Ministry on Tuesday, Purbaya criticized what he described as a potential conflict of interest involving tourism state-owned enterprise PT Pengembangan Pariwisata Indonesia, also known as InJourney Tourism Development Corporation (ITDC).
“You invited a foreign contractor to come here, then created a competitor through your own company. That creates a conflict of interest. Investors will inevitably lose or be sidelined. This is not sound business practice,” Purbaya told the hearing.
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