RI joins APEC meeting to shore up confidence<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
President Megawati Soekarnoputri has left for the Asia Pacific
\nEconomic Cooperation (APEC) summit in Mexico, where she is to
\nconfront international skepticism on the Indonesia economy since
\nthe Oct. 12 terrorist strike in Bali.<\/p>\n
The government hopes to counter doubts with an explanation on
\nits handling of the Bali bombing, according to Coordinating
\nMinister for the Economy Dorodjatun Kuntjoro-Jakti.<\/p>\n
\"The government hopes to gain international support and
\nassistance for policies and actions that have been undertaken in
\nthe aftermath of the tragedy,\" Dorodjatun said in a statement on
\nMonday.<\/p>\n
He did not say what President Megawati planned to say to
\nconvince countries to keep Indonesia on their investment radars.<\/p>\n
Poor security has long been a problem in Indonesia but the
\nbomb explosion on Oct. 12 has deepened concerns with terrorists
\nnow seen as operating in this country.<\/p>\n
At least one international insurance committee has increased
\nthe risk premium for ships bound to or leaving Indonesian ports,
\nwhile economists warned security jitters would stall investment
\nspending.<\/p>\n
The APEC annual meeting in Los Cabos also comes amid worries
\nof a possible war against Iraq and the Bali bombing renewing fear
\nof terrorism.<\/p>\n
Indeed, analysts have said the focus of the meeting would
\nlikely deviate from APEC's main goal of freeing trade barriers
\naround the Asia Pacific region to discussing terrorism.<\/p>\n
Noting the economic havoc terrorist strikes could wield, they
\nsaid, the U.S. would possibly use the APEC meeting to garner more
\nsupport for its global antiterror campaign.<\/p>\n
Against this backdrop, Indonesia might come under new pressure
\nto crack down on suspected terrorists here in view of the fact
\nthat the government had long been downplaying the terror threat.<\/p>\n
The massive bomb explosion that killed nearly 200 people in
\nBali, however, marks a turning point for Indonesia. So far the
\ngovernment's response to the tragedy has drawn positive comments
\nfrom other countries even though its moves risk a backlash at
\nhome.<\/p>\n
The government has issued two antiterrorist decrees to clamp
\ndown on suspected terrorists while waiting for an antiterror law
\nto be drafted.<\/p>\n
Last week's arrest of Abu Bakar Ba'asyir won praise from
\nSingapore. Ba'asyir is said to have founded Jemaah Islamiyah
\n(JI), an organization banned in Singapore and Malaysia but
\nagainst which Indonesia has done little until now.<\/p>\n
Economists said the government must act against such threats
\nif it wanted business confidence to return.<\/p>\n
\"It depends on how the government reacts after Bali,\" said
\neconomist Marie Pangestu of the Centre for International and
\nStrategic Studies (CSIS).<\/p>\n
She warned that domestic consumption, the backbone of
\nIndonesia's economic growth, was faltering and that the country
\nneeded to offset the weakening consumption with more investment
\nand exports.<\/p>\n
\"Consumption growth is slowing, we can't expect much from
\ninvestment, and while we still have export, it can be affected if
\nsecurity is weak,\" she said.<\/p>\n
Prior to leaving for Mexico, Dorodjatun said in Bali the
\ngovernment might allocate about Rp 9 trillion (about US$978
\nmillion) in unused loans for small and medium size enterprises to
\nhelp Bali's recovery.<\/p>\n
\"We still have Rp 9 trillion and we only have two months,
\nNovember and December, to go. Of course we can use the money to
\nhelp tourism in Bali to recover,\" he said in a meeting in Bali
\nwith the representatives of the country's tourism sector.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-joins-apec-meeting-to-shore-up-confidence-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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