REPUBLIKA.CO.ID, JAKARTA --Nearly 60 percent of Indonesia's vital and strategic industries are controlled by foreign investors, which makes it difficult for the government to ensure value addition of its human resources, an observer said.

These strategic industries include banking, telecommunication, electronics, and insurance industries, chief of the Indonesian Social Entrepreneurs Association Bambang Ismawan stated here on Wednesday.

Foreign investors currently hold a 35 percent stake in Telkomsel, 65 percent in XL Axiata, 65 percent in Indosat, and 60 percent in Hutchison Tri, besides holding 50.6 percent of the assets of national banks, he added.

Ismawan further noted that 12 private banks are owned by foreign investors, including CIMB Niaga that has foreign holdings worth 97.93 percent.

"The government should have protected the strategic industries that have a significant impact on economy," he remarked.

According to the economic observer, a modern economy should be run keeping people's economy and welfare in mind. However, the latter is often sidelined due to conflict of interests.

"As modern sectors interfere with the economy of the people, there has been an increase in the number of people living in poverty," he said, adding that lack of skill development of the people results in poverty and backwardness.

"Their inabilities can be seen from the rising number of people denied access to basic services such as health, education and business facilities, which results in low quality of human resources. This, in turn, leads to lesser understanding of technology and organization and lesser capital and income," Ismawan explained.

This is why immediate government intervention is needed in strategic industries, he emphasized.

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