Foreign investors 'too pessimistic on Indonesia'<\/p>\n
JAKARTA (JP): European and American investors have taken a too
\npessimistic view on Indonesia's economic recovery and might find
\nthemselves missing investment opportunities here if they continue
\nto shy away from this country, according to a French economist on
\nMonday.<\/p>\n
Economist and former European Commissioner in charge of
\neconomic, monetary and financial affairs Yves-Thibault de Silguy
\nsaid that foreign investor pessimism prevailed despite "good
\nsignals" of economic recovery in the country.<\/p>\n
"The attitude of European and U.S. investors is not as good as
\nit should be. Their attitude is too pessimistic," he told
\nreporters at a press briefing.<\/p>\n
De Silguy, the vice president of the Suez des Eaux Group, is
\nvisiting Indonesia to affirm the company's investment commitment
\nin the country. He was also actively involved during the 1999
\nlaunching of Europe's single currency, the Euro.<\/p>\n
At the press briefing, he highlighted Indonesia's strong
\nconsumption growth as of importance to investors.<\/p>\n
He said the speed of Indonesia's recovery was encouraging, but
\nnot enough to impress investors in Europe and the United States.<\/p>\n
With a population of some 210 million people, he said,
\nIndonesia's main strength was its market size. "The main strength
\nof the country is the market, because the market drives the
\neconomy, and the larger the market the greater the opportunities
\nto develop," he explained.<\/p>\n
De Silguy said that the time had come to invest in Indonesia,
\nwarning European and U.S investors that more aggressive investors
\nwere already seizing the opportunity.<\/p>\n
"If conditions become better and better it will be more
\ndifficult to enter Indonesia," he went on.<\/p>\n
However, De Silguy admitted that Indonesia was facing many
\nconstraints in its recovery.<\/p>\n
"Not all problems are solved... nothing is perfect," he said.<\/p>\n
He said that favorable economic indicators was not enough to
\nlure back foreign investors.<\/p>\n
"The question of foreign investors is always a question of
\nconfidence," he explained.<\/p>\n
He cited the present political instability, and economic and
\nlegal uncertainties as among the factors that made it difficult
\nto restore investor confidence.<\/p>\n
But, according to him, the government has acquired a better
\nsense of assessing its political and economic situation.<\/p>\n
"There is always progress to be made," he said.<\/p>\n
Striking a similar note was the chairman of Deutsche Bank AG
\nin Asia, who blamed political and legal uncertainties for
\ninvestor disinterest in Indonesia.<\/p>\n
"Even though there have been improvements in the economic
\nfield, what is lacking is the investor confidence," the former
\ndirector of the International Monetary Fund for Asia and the
\nPacific, was quoted as saying by Antara after meeting President
\nAbdurrahman Wahid at the presidential palace.<\/p>\n
De Silguy said his company was committed to raising its
\ninvestment in Indonesia, which at present stood at US$60 million.<\/p>\n
Through its subsidiary PT Pam Lyonnaise Jaya (Palyja), the
\ncompany provides water services to about 210,000 customers living
\nin the western part of Jakarta.<\/p>\n
Under plans to provide drinking water to its customers by
\n2010, Palyja would invest another $140 million over the next 10
\nyears, he explained.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-investors-too-pessimistic-on-indonesia-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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