RI's bad image affects German investment<\/p>\n
JAKARTA (JP): The German-Indonesian Chamber of Commerce and
\nIndustry (EKONID) said on Tuesday that German investors were
\nreluctant to enter Indonesia because of the country's bad image.<\/p>\n
EKONID president Fritz Kleinsteuber said that Indonesia was
\nsuffering from a negative image stemming from constant reports of
\nsocial unrest in various regions of the country.<\/p>\n
\"We have to work to improve Indonesia's image first,\" he told
\nreporters following an EKONID business lunch that introduced
\nGerman's new ambassador, Gerhard Fulda.<\/p>\n
Kleinsteuber blamed negative news reports on Indonesia for
\nhaving distorted Indonesia's image in the international
\ncommunity.<\/p>\n
According to him, good news about Indonesia was never really
\nexposed abroad. \"Business here is doing well, but nobody talks
\nabout it.<\/p>\n
\"Bring some good news and investors will come, but as long as
\nwe have so much bad news, there will be no investment,\" he said.<\/p>\n
He said that at present, no German investor was ready to
\ninvest in large projects in Indonesia, but added that there would
\nalways be small and midsize export-oriented projects.<\/p>\n
\"Ten small projects are much better than one big project
\nbecause they create more jobs,\" he said.<\/p>\n
The German business community, he said, was also awaiting the
\nformation of the new Cabinet before committing to any new
\ninvestments.<\/p>\n
He said that over 60 percent of Indonesian exports to Germany
\nwere manufactured products, while the remaining were natural
\ncommodities.<\/p>\n
Manufactured products exported to Germany range from
\nelectronic products to bicycles parts.<\/p>\n
\"It's a very broad base, about 100 different products,\" he
\nsaid.<\/p>\n
Kleinsteuber said that small and midsize companies that had
\nsurvived the crisis were able to benefit from their business with
\ntheir German partners.<\/p>\n
He expressed optimism that Indonesian exports to Germany would
\ngrow.<\/p>\n
\"Indonesian exports to Germany are going up -- constantly,\" he
\nsaid.<\/p>\n
But data from EKONID show that Indonesian exports shrank from
\nUS$1.5 billion in 1997 to $1.4 billion in 1998 and down to an
\nestimated $1.3 billion in 1999.<\/p>\n
Nevertheless, Indonesia enjoys a trade surplus with Germany
\nsince 1998 when it booked DM 618 million (about US$294 million)
\nin surplus that grew to DM 1.8 billion in 1999.<\/p>\n
The 1997 economic crisis lowered Indonesia's purchasing power,
\nwhich was reflected in a sharp decline in German exports from DM
\n5.2 billion in 1997 down to DM 3.3 billion in 1998 and DM 2
\nbillion in 1999.<\/p>\n
Ambassador Gerhard Fulda said that the German government had
\nshifted its priority from fostering economic relations with
\nIndonesia to improving the country's human rights.<\/p>\n
\"There is no contradiction in fostering economic relations and
\nfostering human rights,\" Fulda told in a speech before members of
\nEKONID.<\/p>\n
He said that human rights would help prevent conflicts and
\noptimize human resources, which were of benefit to the business
\ncommunity.<\/p>\n
According to the ambassador, helping Indonesia develop its
\nhuman rights was in line with helping the country adopt
\ndemocracy.<\/p>\n
\"The German government is supporting the transition period,\"
\nhe said.<\/p>\n
Fulda, however, later refused to comment on how the policy
\nchange would affect economic relations between both countries.<\/p>\n
Kleinsteuber said that the change in policy would have only a
\nsmall impact on EKONID members, as they were largely independent
\nof economic aid from the German government. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ris-bad-image-affects-german-investment-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}