'General election will not jeopardize property investment'<\/p>\n
JAKARTA (JP): The impending general and presidential elections
\nwill not endanger long term property investment, an observer said
\nyesterday.<\/p>\n
"In our assessment, the current sociopolitical situation in
\nIndonesia will not be detrimental to the property market," said
\nmanaging director of property consultants PT DTZ Debenindo,
\nVictor Chan.<\/p>\n
Chan acknowledged that growing political tensions such as the
\nrecent riots have caused fear among property developers.<\/p>\n
Many of the property developers have postponed or even aborted
\ntheir investment decisions, he said.<\/p>\n
Chan said that uncertainties have been mainly caused by
\nreports in the Western media, which have not been supported by a
\nsound understanding of Indonesian politics.<\/p>\n
"Just a couple of weeks ago, a key representative of a wealthy
\ninvestment institution in the Middle East told me that his
\norganization was keen to invest in Indonesia but abandoned the
\nidea due to reports in CNN and other agencies " he said.<\/p>\n
"Many banks in Indonesia are now flush with liquidity, as most
\nbusinessmen prefer to wait out the elections," said Chan,
\noriginally from Singapore, in his presentation, "Indonesian
\nProperty. Benefiting from A Unique Market".<\/p>\n
Indonesia will hold general elections for the 500-member House
\nof Representatives in May. The People's Consultative Assembly
\nwhose members include the House of Representatives will elect the
\nPresident in April 1998.<\/p>\n
At a recent seminar Chan said those who have carefully studied
\nIndonesia's culture and history would not believe that media
\ndepictions of instability.<\/p>\n
According to Chan, the sociopolitical situation would
\nnormalize soon after the general elections.<\/p>\n
"Most observers agree that the outcome of the two elections
\nwill lift business confidence and optimism in Indonesia," Chan
\nsaid.<\/p>\n
Chan said reports of political tension in the Western media
\nimplied that chaos was looming in Indonesia or that a coup was
\nlikely.<\/p>\n
"My colleagues and I prefer to see these incidents as a
\ndomestic dispute that can be peacefully settled soon," he said<\/p>\n
"It's true that some of the family members have spoken very
\nloudly, but there are no indications that there is a real fight,"
\nhe said.<\/p>\n
Institution<\/p>\n
Chan pointed out that within Indonesia there are institutions
\nsuch as musyawarah (consultation) and mufakat (consensus) which
\nallow a peaceful resolution of conflict.<\/p>\n
Traditionally, Indonesians tend to regard problems as
\nflexible. This is expressed in the phrase semua bisa diatur
\n(everything can be arranged).<\/p>\n
He said the system, which President Soeharto has established
\nover 31 years, would not be easy to dismantle.<\/p>\n
"Even after he is gone, the tendency to avoid confrontation
\nand open conflict and the desire to solve problems peacefully
\nthrough musyawarah and mufakat is likely to prevail," he told the
\nseminar organized by the Singapore-based property consultant
\nEdmund Tie & Company and the Hong Kong-based real estate agent CY
\nLeung & Company<\/p>\n
Besides in Jakarta, a similar seminar will also be held in
\nSingapore, Kuala Lumpur and Hong Kong, ending on April 25. (jsk)<\/p>",
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"sponsor_url": "https:\/\/okusiassociates.com"
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