Following the Polaris CEO's arrest in Indonesia and a claim of US $10 million against the Company, it has become necessary to assess the total exposure of all Indian IT companies in contracts in Indonesia.

Indonesia is a country known for its sympathy to terrorists such as Al Queda for whom India is an important enemy. In this context, it is necessary for Nasscom to guide the Indian businessmen on the risks involved in dealing with such countries.

Just as India cannot risk a visit of the Indian cricket team to Pakistan due to the prevailing political conditions, the country should not risk our business interests to Indonesian military regime.

In this connection we would like to know if Nasscom has made a survey of Which all Indian companies have entered into contracts with Indonesian counterparts, What is the total value of the contracts, What are the legal liabilities agreed to and How India can meet claims of compensation such as what has been claimed from Polaris etc.

The claim on Polaris if it has to be paid could mean a crippling blow even leading to a closure of the Company and this could hurt all Indian IT stocks in India and other places. Has Nasscom made any study of the impact on the Indian stock markets? Has it taken steps to stop trading in Polaris stocks until some solution is worked out to avoid distress sales?

We look forward to an early reaction from Nasscom.

naavi.org

December 18, 2002

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