German investors told to stay in Indonesia<\/p>\n
JAKARTA (JP): A former German economics minister has advised
\nhis compatriots to persevere in crisis-hit Indonesia to maintain
\nmarket share for when the economy rebounds.<\/p>\n
\"I can only ask you to stay, invest and work for better days,\"
\nOtto Graf Lambsdorff, a two-term minister in the late 1970s
\nthrough early 1980s, said on Thursday.<\/p>\n
Speaking at a luncheon forum organized by the German-
\nIndonesian Chamber of Commerce and Industry (Ekonid) here,
\nLambsdorff said he was confident there would be a future
\nturnaround and stirrings of economic recovery were already
\nevident.<\/p>\n
\"At the moment, I'm a little doubtful because economic
\nactivities have slowed down, but investment is not a question of
\nthis moment, it's a question of the future.\"<\/p>\n
The country remained a \"solid and safe economy, and a very
\nimportant market\".<\/p>\n
Many major German industrial companies have 50 percent of
\ntheir workforce outside of Germany because of high taxes and
\nlabor costs at home, he said.<\/p>\n
They relocate operations to markets with lower taxes and
\nproduction costs and more flexible labor markets, he said.<\/p>\n
\"So I'm very much in favor that German companies invest in
\nthis country.\"<\/p>\n
Although Lambsdorff believed it unlikely that Germany
\ncompanies would pull out due to the slump, he said investors
\nneeded assurances the country was moving toward implementation of
\ndemocracy.<\/p>\n
\"Democratic development will give more confidence and more
\nstability for the industrial investments.<\/p>\n
\"We've seen the nondemocratic countries finally led to
\ndestruction, as we, unfortunately, had seen in this country.\"<\/p>\n
The situation created instability and insecurity, which was
\nnot conductive to operations of the business community and
\ncorporations.<\/p>\n
Since Soeharto resigned in May following massive social
\nunrest, the country has undergone rapid political changes against
\na backdrop of continuing economic turmoil.<\/p>\n
In a development almost unprecedented during Soeharto's 32-
\nyear rule, political figures and student demonstrations have
\nopenly questioned the legitimacy of B.J. Habibie's government,
\ndenouncing it as a mere extension of the former regime.<\/p>\n
Heartening changes have also been undermined by violent
\noutbreaks, including two riots in Jakarta in the last two weeks.
\n(das)<\/p>",
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"sponsor": "Okusi Associates",
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