Japan's business interests<\/p>\n
The visit here last week of the leaders of Japan's most
\npowerful business lobby, the Japan Federation of Economic
\nOrganizations (Keidanren), though part of an ASEAN tour, is
\nnevertheless quite significant, seen from the perspective of
\nbilateral economic ties, notably Japanese investor interests in
\nIndonesia.<\/p>\n
The fact that the most powerful business leaders from the
\nworld's second largest economy still bothered to visit Indonesia
\nand held meaningful, straight-forward talks with the President,
\nVice President and local business organizations would ease the
\ngreat concern that Japanese investors might completely write off
\nIndonesia from their business plans.<\/p>\n
Such concerns were prompted by the disclosure here in late
\nMarch of a very negative assessment of the Indonesian business
\nclimate by Japanese business executives, as surveyed by the Japan
\nBank for International Cooperation.<\/p>\n
Certainly, Japan has been and is still the largest foreign
\ninvestor in the country and the largest provider of official
\nloans. But Indonesia cannot take Japan's role for granted. The
\nkeener competition posed by other Southeast Asian countries which
\noffer a much better investment climate to foreign investors,
\ncombined with the worsening domestic infrastructure, legal
\nframework and industrial relations in Indonesia, could puncture
\nthat privileged relationship.<\/p>\n
Hence, lies the importance of the Keindanren leaders' visit
\nthat enabled the business leaders to gather first-hand
\ninformation about the overall condition and assess the future
\noutlook of their role in the country amid Indonesia's rapidly
\nexpanding economic ties with China, the new emerging economic
\npower in Asia.<\/p>\n
After all, Japan cannot simply ignore Indonesia. Seen from
\ntheir own long-term interests and their future economic role in
\nAsia, Japanese investors cannot afford to abandon Indonesia,
\ndespite its myriad problems now.<\/p>\n
It is not only Japanese businesses that have suffered the
\nbrunt of Indonesia's economic crisis and the complications caused
\nby the country's transition from an authoritarian to democratic
\nrule and from a centralized, authoritarian government to regional
\nautonomy.<\/p>\n
Moreover, the thorniest issues within bilateral economic ties
\nhave been resolved by the recent agreement on the restructuring
\nof Chandra Asri's huge debts to a Marubeni-led creditor
\nconsortium and the recent decision to resume the construction of
\nfive giant industrial and power projects worth more than US$2.6
\nbillion involving major Japanese investors and creditors.<\/p>\n
China's entry into the World Trade Organization early this
\nyear and the ASEAN plan to extend its free trade area to China
\nwithin 10 years and subsequently to South Korea and Australia
\nmake it even more imperative for Japanese investors not only to
\nmaintain but even to expand their operations in Indonesia, as the
\nlargest ASEAN country.<\/p>\n
This is, we believe, the grand vision very much in the minds
\nof the visiting Keidanren leaders.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japans-business-interests-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}