U.S. senator upbeat about RI economy<\/p>\n
JAKARTA (JP): United States Senator Max Baucus said here
\nyesterday he was optimistic that Indonesia would be able to
\nweather the currency crisis if it fully implemented its reform
\npackage.<\/p>\n
Baucus said the currency crisis, which has led to the fall in
\nthe rupiah's value against the U.S. dollar by over 50 percent
\nsince early July, was mainly caused by a rumor-aggravated market.<\/p>\n
\"Much of what's going on now is psychological,\" Baucus told
\njournalists at the start of his three-day visit to the country.<\/p>\n
Concern over the financial crisis in other countries such as
\nSouth Korea also affected public confidence in the Indonesian
\neconomy, he said.<\/p>\n
Baucus, a Democrat from the state of Montana, said the
\ncondition could only improve if Indonesia soon implemented the
\neconomic reforms agreed to with the International Monetary Fund
\n(IMF).<\/p>\n
The Indonesian government recently issued economic reforms
\nconsisting of massive cutbacks in the state budget and state-
\nrelated projects, the consolidation of the financial sector and
\nthe abolishment of monopolies of certain important commodities to
\nsupport the US$23 billion IMF bailout program.<\/p>\n
The sooner Indonesia committed to the reforms, including the
\nrestructuring of its finance institutions, the sooner investors
\nwould return to the country, he said.<\/p>\n
Baucus said the United States would back Indonesia to do what
\nwas necessary to help restore confidence in the country.<\/p>\n
\"I am here also to reconfirm the U.S. commitment to the
\nregion, particularly to Indonesia,\" he said, adding that the U.S.
\nwould continue helping Indonesia through independent institutions
\nsuch as the IMF.<\/p>\n
Baucus, who is leading a trade delegation comprising of 12
\nbusinessmen from Montana, said the United States still saw
\nIndonesia and other countries in Southeast Asia as prospective
\nbusiness partners despite the crisis.<\/p>\n
\"We are more interested in the Asia-Pacific region than in
\nEurope,\" he said.<\/p>\n
Indonesian ambassador to the United States, Arifin Siregar,
\nsaid yesterday Indonesia remained one of the 10 preferred trade
\npartners of the U.S. government.<\/p>\n
\"Indonesia is considered by the U.S. trade ministry as one of
\nthe best countries for trade,\" Siregar told a luncheon, hosted by
\nthe Indonesian Chamber of Commerce and Industry (Kadin) for
\nBaucus and the Montana trade delegation.<\/p>\n
The U.S. market was a target for exporters, since America's
\neconomy was sustaining high growth, low inflation and a higher
\npurchasing power, he said.<\/p>\n
He said the depreciation of the rupiah had also made
\nIndonesian exports more competitive in the U.S. market.<\/p>\n
Siregar said many U.S. investors were interested in investing
\nin infrastructure, power plants, telecommunications and
\ntransportation in Indonesia.<\/p>\n
Tony Agus Ardie, Chairman of the committee, conceded Indonesia
\nhad to work harder to regain the confidence of foreign investors,
\nnotably those from the U.S.<\/p>\n
\"American investor interests in Indonesia have been declining
\nsince the outbreak of our financial crisis,\" Tony admitted.<\/p>\n
Baucus said Montana, a northwest state with a population of
\n900,000, was interested in cooperating with Indonesia in
\nenvironmental technology, and the livestock, wood products and
\nenergy industries.<\/p>\n
Montana was specifically interested in entering the country's
\nenvironmental technology sector, such as water and waste
\nmanagement, as the sector had yet to be developed in Indonesia,
\nhe said.<\/p>\n
\"Dollars invested in environmental technology is not an
\nexpenditure, it's an investment. It helps raise the quality of
\nlife and eventually the country's economy,\" he said.<\/p>\n
Baucus and the trade delegation arrived here Tuesday after his
\nvisit to Japan, the Philippines and Brunei. He is scheduled to
\nleave for Bangkok today. (das)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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