25% of funds deposited overseas has returned<\/p>\n
JAKARTA (JP): Indonesian Business Development Council chairman
\nSofyan Wanandi estimated on Tuesday a quarter of the funds
\ndeposited overseas by local businesspeople had returned to the
\ncountry and been reinvested.<\/p>\n
Speaking during a break in a seminar on Indonesia's economic
\nrecovery in 2000, Sofyan predicted all the funds taken out of the
\ncountry during the economic crisis would return to Indonesia in
\none to two years.<\/p>\n
\"At least 20 percent to 25 percent of the money which flowed
\nout of the country has returned, and I believe in the next one or
\ntwo years all the money will come back,\" he said.<\/p>\n
He estimated that total domestic funds deposited overseas
\nreached around US$15 billion -- far below some estimates which
\nput the figure at $80 billion. And of that $15 billion, Sofyan
\nguessed $3 billion had been returned to Indonesia.<\/p>\n
Those returning their money, he said, were medium-sized
\nbusinesspeople who used the funds to finance the expansion of
\ntheir businesses, particularly in the retail sector.<\/p>\n
Sofyan noted the retail sector had been bullish recently
\ndespite a lack of banking credits to support its growth.<\/p>\n
\"The development of this (retail) sector indicates capital
\ninflow,\" he was quoted by Antara news agency as saying.<\/p>\n
Meanwhile, Sofyan predicted that large business owners would
\ncontinue to keep their money outside of Indonesia because \"most
\nof them owe massive debts to the Indonesian Bank Restructuring
\nAgency\".<\/p>\n
He also said large businesspeople did not yet want to return
\ntheir money to Indonesia because they still were wary of security
\nin the country.<\/p>\n
Sectors that he sees as currently insecure for investment
\ninclude plantations and agriculture. But he did not supply
\nreasons for this assessment, only saying, \"Businesspeople in
\nthese sectors still refrain (from investing) because they are
\nstill afraid and traumatized by past violence.\"<\/p>\n
In addition, Sofyan said the country's business climate was
\nnot yet conducive for new investment because of the still weak
\nlaw enforcement.<\/p>\n
While Indonesians are still reluctant to make new investments,
\nSofyan said it would take even longer for foreigners to invest in
\nthe country. \"They still have a wait-and-see attitude.\"<\/p>\n
Nevertheless, he expressed confidence both locals and
\nforeigners would begin investing in the country when the economy
\nshowed significant signs of recovery, and security and law
\nenforcement improved. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/25-of-funds-deposited-overseas-has-returned-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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