RI needs to welcome Chinese investments<\/p>\n
JAKARTA (JP): A local economist has suggested that Indonesia
\ncourt the investment funds of overseas Chinese, who are becoming
\nthe backbone of economic growth in East and Southeast Asia.<\/p>\n
Sharing the views of leading global trend analysts,
\nChristianto Wibisono said here last week that in the 21st century
\nthe economic locomotive of countries in the region will not be
\nthe Japanese but overseas Chinese.<\/p>\n
Christianto noted that the combined foreign exchange reserves
\nof the overseas Chinese -- notably those from Hong Kong, Taiwan
\nand Singapore -- currently stand at US$237 billion, or one-third
\nof the combined gross domestic products of 10 Southeast Asian
\ncountries.<\/p>\n
He noted that the overseas Chinese are influenced only by
\nbusiness opportunities and market forces when moving their funds.
\nHowever, China tends to exploit ethnic solidarity in attracting
\noverseas Chinese to invest more in their homeland.<\/p>\n
\"Indonesia has to conduct a counter offensive and compete with
\ncountries like Canada and Australia in attracting these overseas
\nChinese investors,\" Christianto said.<\/p>\n
Canada and Australia will host the fourth and fifth World
\nChinese Entrepreneurs Convention respectively in 1997 and 1999.
\nThe convention, founded by Singapore Senior Minister Lee Kuan
\nYew, was held for the first time in Singapore in 1991; the second
\nin Hong Kong in 1993 and the third in Bangkok last month.<\/p>\n
Indonesia since the beginning has refused to recognize the
\nexistence of the convention.<\/p>\n
Minister of Home Affairs Yogie S. Memet, when inducting
\nJuwono Sudarsono as chief of the communication forum for the
\nenhancement of national unity, recently renewed the government's
\ncall that local Chinese entrepreneurs not attend the convention.<\/p>\n
The end-year report by the Indonesian Business Data Center,
\nchaired by Christianto, revealed that 204 of the 300 largest
\nconglomerates in Indonesia were owned and controlled by non-
\nindigenous businessmen. They controlled combined turnovers of Rp
\n91.27 trillion (US$11.4 billion) and combined assets of Rp 212.83
\ntrillion in 1994.<\/p>\n
\"Therefore, it is difficult for Indonesians to accept capital
\ninvasions from the overseas Chinese, which they fear can widen
\nthe existing gaps between indigenous and non-indigenous
\nprosperity,\" he said.<\/p>\n
However, Christianto underlined the important role played by
\noverseas Chinese in Indonesia's economy through their direct
\ninvestments.<\/p>\n
Data at the Investment Coordinating Board show that combined
\ncommutative investment approvals from Hong Kong, Taiwan and
\nSingapore in Indonesia totaled $39.5 billion as of last month, or
\n28 percent of the $141.5 billion in total foreign investment
\ncommitments cumulatively approved since 1967.<\/p>\n
If Indonesia fails to attract the overseas Chinese, they will
\nrun to other countries they consider attractive, Christianto
\nsaid.<\/p>\n
\"Why don't we try to attract these overseas Chinese and match
\nthem with indigenous entrepreneurs so that the indigenous will
\nnot be left further behind by local Chinese businesses,\" he
\nsuggested. (rid)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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