Foreign firms not deterred by riots<\/p>\n
SURABAYA (JP): Despite last weekend's major rioting in
\nJakarta, foreign businesspeople seem unconcerned about making new
\nbusiness deals with Indonesian partners.<\/p>\n
Executives of eight U.S. companies, all from Minnesota, have
\nbeen seeking new business relationships in East Java for the last
\ntwo days.<\/p>\n
"Indonesia has always had stability. We believe this will
\nresolve soon. It doesn't influence our mission," said Henry
\nFlorentius, the Asia Trade Representative of the Minnesota Trade
\nOffice, who brought the Minnesota businesspeople here.<\/p>\n
Violent riots rocked Jakarta last weekend, killing three
\npeople, injuring over 20 and causing widespread damages to
\nproperty, including the burning and stoning of 22 buildings,
\nofficial figures said.<\/p>\n
Florentius noted that such riots are commonplace at pre-
\nelection time in any country.<\/p>\n
Guy W. Miller, president of Encore Technologies, shared
\nFlorentius's view, saying that the riots would not discourage
\nU.S. firms to seek business opportunities in Indonesia,
\nconsidering its huge market size.<\/p>\n
"Yes, we are concerned about what's happening. But we see it
\nas an internal matter and we feel confident that we are not the
\ntargets," Miller told The Jakarta Post here yesterday.<\/p>\n
At a separate occasion, Gannet Pontjowinoto, head of PT
\nSurveyor Indonesia's Singapore branch, said that currently,
\nbusinesses in Singapore are taking a wait and see attitude
\nfollowing the riots.<\/p>\n
"It is true that they take a closer look now. But after
\neverything is settled, then they will come here again because
\nIndonesia is their market," Gannet told the Post.<\/p>\n
The government has hoped that the riots will not significantly
\ndiscourage foreign investment from coming to Indonesia,
\nconsidering that the country's economic fundamentals remain
\nsound.<\/p>\n
"We hope the impact will be rather negligible because things
\nlike this occur everywhere," said State Minister of Investment
\nSanyoto Sastrowardoyo.<\/p>\n
State Minister of National Development Planning Ginandjar
\nKartasasmita added that there will be no significant increase in
\nIndonesia's country risk rating despite the recent riots.<\/p>\n
"Risk rating depends on various factors ... but I do not see
\nit increasing significantly even in the near term," Ginandjar
\nsaid. "I think the security people have handled the riots wisely
\nand effectively."<\/p>\n
Ginandjar acknowledged that the riots would still have short-
\nterm impact on the country's investment.<\/p>\n
The most telling damage of the riots on investors confidence
\nwas the drop on the Jakarta Stock Exchange (JSX), when panic
\nselling hit the market on Monday and Tuesday.<\/p>\n
Foreign investors remained absent for most of the week but
\nreturned later in the week to cash in on cheap stocks. The JSX
\ncomposite index rebounded yesterday to 560.96 from 548.93
\nThursday. (27\/rid)<\/p>\n
Confidence -- Page 10<\/p>\n
JSX -- Page 11<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/foreign-firms-not-deterred-by-riots-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }