Focusing on Asian business<\/p>\n
By Mohammad Sadli<\/p>\n
MELBOURNE (JP): Attending a big conference in Melbourne
\nfocusing on the prospects of doing business in Asia, one enters a
\ndifferent atmosphere. The conference was dominated by Australians
\nfirst of all, then Europeans and Americans, while from Japan
\nthere was a strong delegation of Keizai Doyukai. Participants
\nfrom the ASEAN countries, India and South Korea were a minority,
\nbut there was a sizable delegation from (mainland) China,
\nreflecting the opening up of the country and the newly affluent
\nbusinessmen venturing into the world.<\/p>\n
The focus was on doing business and competing in Asia. At one
\ntime the conference broke up into three country focus groups; on
\nIndonesia, China and India. For one reason or another Japan,
\nKorea, Thailand, Malaysia and Singapore did not get a special
\nfocus group.<\/p>\n
The Indonesia focus group drew the biggest crowd and was
\nattended by some 150 people. The China focus group attracted
\nsomewhat less than 100 participants, while for the India focus
\ngroup a small conference room was reserved occupied by less than
\n50 attendants.<\/p>\n
Many Australian businessmen are attracted to prospects in
\nIndonesia. From them one does not hear major complaints any more.
\nSomewhat euphemistically, corruption in China and Indonesia was
\ncontrasted as being at one end of a scale, with New Zealand and
\nAustralia at the other end. The advise of businessmen experienced
\nin doing business in Asia is that one has to be very patient,
\nhave consideration for the local culture and be very careful and
\ncautious in choosing local partners. On the other hand, it is
\nobserved that Asian businessmen stay with their foreign partners
\nfor a long time. Perhaps the truth is that after foreign
\ntechnology is effectively absorbed, the local partner will create
\na new venture in the same business but will not abandon the
\noriginal affiliation.<\/p>\n
The opening up of the Indian economy is attracting much
\nattention. The Japanese are especially eager to be updated in
\ntheir information and insight. But there is concern that the
\npolitical process in India could set back economic
\nliberalization. In the meantime, economic growth is inching
\nupward, crossing the five percent line. Exports and imports are
\nreally picking up.<\/p>\n
The world's extreme interest in East Asia is due to the
\nsplendid performance of the developing part of the continent.
\nGrowth rates are predicted to stay in the seven to eight percent
\nbracket per annum, several times the rate of the western world
\nand Japan. That means that in one or two decades Asia will become
\nthe economic center of gravity of the world. Conferences such as
\nthe one in Melbourne are basking in Asian optimism as if nothing
\ncan stop East Asia in its path of progress. Actually, this would
\nbe unwise because political stability and regional security, the
\nunderpinnings of such process, are not automatically guaranteed
\nin the long run.<\/p>\n
But otherwise, Western business should be inside this area,
\nsooner rather than later, to get in on the ground floor. The
\ninfrastructure requirements alone will be a mindboggling figure
\nof a trillion dollars or more in the ten years to come, and China
\nand ASEAN will attract the lion's share. Such money cannot come
\nfrom the World Bank or other concessional sources and hence the
\nwhole system of construction and operation of public
\ninfrastructure should be geared towards private sector
\ninvolvement. The legal and management systems should be reformed
\nfrom one that was originally anchored in the public sector.<\/p>\n
Privately financed and operated public infrastructure
\nfacilities need not become more expensive because of expected
\ngreater efficiency in operation and cost savings in construction.
\nEven if the user has to pay more as is the case with toll roads,
\nthat has to be contrasted with deficit financing in the old days
\nwhen all people had to pay through the process of inflation,
\nregardless of the fact that people living in Aceh were not using
\nthe (better) roads in Java.<\/p>\n
The sponsor of the Melbourne conference is the Committee for
\nEconomic Development of Australia, a non-profit organization of
\nbusiness and no extension of the government. There is an
\ninternational network of such organizations, like the Committee
\nfor Economic Development in the U.S. and Keizai Doyukai in Japan,
\nand several others in Europe. This network holds annual meetings
\nlike this year in Melbourne and next year in Madrid.<\/p>\n
The Australian Committee for Economic Development of Australia
\nhas also embarked on an Asian network called Asian Region
\nInternational Association of Cooperating Organizations which is
\nstill in its infancy. The cooperating organization in Indonesia
\nis Indonesia Forum with Prof. Sadli in the chair. The first day
\nwas devoted to the first meeting of the Asian Region
\nInternational Association of Cooperating Organizations but the
\nAsian delegations were small and could not field important
\nbusinessmen. Probably because such businessmen are too busy to
\nspend a couple of days in an overseas conference where the
\nemphasis is not on business deals. Japan with Keizai Doyukai is
\nnot yet a member of Asian Region International Association of
\nCooperating Organizations.<\/p>\n
But Indonesian businessmen should spend some time in meetings
\nwhere their horizons can be broadened and contacts enlarged.
\nIndonesia should no longer be obsessed with investment into, and
\nbusiness promotion for, their country only. The Indonesian public
\nshould also be taught that Indonesian investments overseas do not
\nconstitute capital flight, even if a Chinese conglomerate invests
\nin China. In Australia there is already visible Indonesian
\ninvestments in real estate and property, but probably more from
\nthe other ASEAN countries.<\/p>\n
Many of the Indonesian businessmen who were top executives in
\nthe 1960s and 1970s have now become board members or chairmen and
\nare not burdened any more with day to day responsibilities. Such
\nsenior and wise men could play a part in international business
\ncommunication and diplomacy, and meet their counterparts in
\nconferences like Asian Region International Association of
\nCooperating Organizations, World Economic Forum, APEC Business
\nForum and others.<\/p>",
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"sponsor": "Okusi Associates",
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