Transparency 'essential' to restore confidence<\/p>\n
JAKARTA (JP): Greater transparency and political will,
\nespecially in nominating vice presidential candidates, are
\nessential to restore confidence in the Indonesian economy,
\nchairman of Gemala Group Sofjan Wanandi said yesterday.<\/p>\n
After a seminar on Indonesian export prospects in the regional
\nfree trade era, Sofjan said the issue of political leadership --
\nand the smooth transition from one leader to another -- as well
\nas a more open political system -- needed to be addressed in
\norder to restore international confidence.<\/p>\n
\"For foreign investors, political transparency is more
\nimportant now than the government's economic policy,\" he said.<\/p>\n
He urged the ruling Golkar to announce its candidate for vice
\npresident as soon as possible because the world is waiting to
\nhear who it is.<\/p>\n
Sofjan, who was part of a business mission to the United
\nStates led by Finance Minister Mar'ie Muhammad last week, said
\nbusinesspeople overseas asked many questions about the issue of
\nnational leadership succession.<\/p>\n
He said most foreign businesspeople asked about the country's
\nmonopoly and national car policies and about the leadership
\ntransition.<\/p>\n
\"The government needs to provide clear signals and greater
\ntransparency, because inconsistencies and mixed signals affect
\ninvestor confidence in the short-term and more importantly cloud
\nthe medium-term outlook of the country's prospects,\" he said.<\/p>\n
Sofjan also said that foreign creditors' confidence in
\nIndonesian companies was on the wane.<\/p>\n
He said some foreign creditors had asked private companies to
\nrepay debts prior to the maturity date because of their complete
\nlack of confidence in Indonesia.<\/p>\n
\"If the government cannot restore public confidence in the
\ncoming year, I am afraid that most major Indonesian companies
\nwill collapse,\" he said.<\/p>\n
He said most major local companies would not survive a
\ncontinuing fall in the rupiah's value as well as high interest
\nrates.<\/p>\n
\"But if the adjustment policies are undertaken successfully
\nand the government and businesses use this opportunity to make
\nthe necessary self-corrections and recognize that they will be
\noperating in a different environment, I'm confident that in the
\nmedium-term the prospects will be bright,\" he said. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/transparency-essential-to-restore-confidence-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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