'President' Megawati pick of investors<\/p>\n
JAKARTA (JP): Positive sentiments of foreign investors will
\nsurge if Megawati Soekarnoputri, the chairwoman of the Indonesian
\nDemocratic Party of Struggle (PDI Perjuangan), is elected
\npresident, a political risk consultant said on Wednesday.<\/p>\n
"Megawati has support from Washington, which will smoothen
\nbilateral and multilateral aid from the International Monetary
\nFund (IMF), World Bank and other sources, to create a positive
\nenvironment for investment," James Van Zorge, head of the Van
\nZorge, Heffernan & Associates consulting firm, said.<\/p>\n
Megawati is the presidential candidate of PDI Perjuangan which
\nwon 153 seats in the House of Representatives in the June general
\nelection. But it is not enough to win the presideantial election.<\/p>\n
The ruling Golkar Party, which came second with 120 seats, has
\nnominated incumbent President B.J. Habibie as its presidential
\ncandidate. Analysts feared that the party will use "money
\npolitics" to secure the presidential post.<\/p>\n
The alliance of six Muslim-oriented parties, claiming to have
\nabout 150 seats in the House, has tendered Abdurrahman "Gus Dur"
\nWahid as their choice, adding more uncertainty in the
\npresidential race.<\/p>\n
The 700-member People's Consultative Assembly (MPR),
\ncomprising of 500 House members, and 200 regional and intrerest
\ngroup representatives, will convene in November to elect the
\nPresident.<\/p>\n
"The Bank Bali case and East Timor issue have damaged
\nHabibie's credibility with Washington," Van Zorge said.<\/p>\n
He was speaking after a media conference to announce the
\ncompany's plan to hold a two-day conference starting on Oct. 21
\nin Bali.<\/p>\n
"Megawati would have to find the right officials who could run
\nthe economy," he said, adding that she has to put together a
\ncapable and credible Cabinet to attract more foreign investors.<\/p>\n
"Businesspeople foresee the presidential election as a
\nmilestone in Indonesia's democratic reform," he said, adding that
\nthey could deal with corruption or lack of transparency, but not
\nwith uncertainties.<\/p>\n
"Businesspeople want the certainty of knowing who the
\npresident is and what the government's agenda and policies are
\ngoing to be for the next five years," he added.<\/p>\n
The Investment Coordinating Board reported recently that
\nlicensed foreign investment in the first eight months of 1999
\ndropped 50 percent to US$5.88 billion from $11.7 billion in the
\nsame period last year.<\/p>\n
"Foreign investment inflow has virtually stopped due to the
\npolitical uncertainty," he said.<\/p>\n
But he added that mining sectors such as coal, gold, oil and
\ngas along with manufacturing would remain attractive to
\ninvestors, but only after the uncertainty was removed.<\/p>\n
"With a stable government and reasonable policies, Indonesia's
\ngrowth would pick up, not up to the precrisis level but to a more
\nsustainable level," he added.<\/p>\n
The conference, titled "Indonesia Next", has invited 40
\nspeakers from different backgrounds to discuss the problems faced
\nby Indonesia and to find alternative solutions to upcoming
\nproblems.<\/p>\n
Confirmed speakers include Paul Wolfowitz, former U.S.
\nambassador to Indonesia; Abdurrahman Wahid, chairman of the
\nlargest Islamic group Nahdatul Ulama; Marzuki Darusman, a deputy
\nchairman of the Golkar Party; Roby Djohan, president of state
\nBank Mandiri; Mari'e Muhammad, former minister of finance. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/president-megawati-pick-of-investors-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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