Thu, 03 Feb 2000

Abdurrahman reassures investors on stability

PARIS (JP): President Abdurrahman Wahid assured French President Jacques Chirac and foreign investors here that he was fully in control of the situation in Indonesia and security and political stability would prevail.

Speaking to journalists after meeting with Chirac, Abdurrahman said there was no rivalry within the government.

"I can handle the country as a whole, and I don't have personal enemies," Abdurrahman said after the 90-minute meeting.

Responding to questions about rampant violence and interethnic clashes, the President replied: "Little by little, gradually, the solution will be permanently stable".

During the meeting, Abdurrahman briefed Chirac on the latest developments in Indonesia. He indicated to journalists that he failed to persuade his counterpart to grant a bigger quota for Indonesian textile products entering France.

The President and his entourage arrived in Paris on Tuesday morning for a six-hour visit. He flew in from London where he stayed two days for a working visit.

In a separate meeting with about 200 French investors, Abdurrahman said the prospect of investment in Indonesia was still very bright despite troubles in parts of the country.

He described the problems as merely "technical" and reiterated that his government would overcome these difficulties.

"There are many dilemmas in my country, but the problems are merely technical, and my country's prospects are still very bright," Abdurrahman said.

Abdurrahman highlighted the sectors of banking, infrastructure, transportation, mining and agribusiness as good prospects for foreign investors.

However, several investors indicated their continuing concern of pouring fresh money into the country.

An executive of a drinking water company which has a joint- venture with Jakarta's city water tap company PT PAM Jaya, said he was concerned over continued demands in Indonesia for the government to cancel the agreement.

"We hope the government will stick to its principle of honoring contracts with foreign companies," said the businessman.

Jacques Daubas, an executive of Paribas Bank, said the bank would continue its operation in the country but was wary over the current situation in Indonesia.

However, when asked about future prospects of state-owned aircraft manufacturer PT IPTN, the President said the state company should totally review its strategy, because the company was mismanaged by his predecessor B.J. Habibie.

He said he would not dissolve the company although it caused huge losses to the state, but the company should adopt a market- oriented principle.

Abdurrahman said one of the primary aims of his overseas trip was to restore international confidence in Indonesia and drum up foreign investment.

After meeting with British Prime Minister Tony Blair at No. 10 Downing Street on Monday evening, the President said British Police would provide training for the National Police, including methods for facing demonstrations.

From Paris, the President will fly to the Netherlands for a two-day visit.(prb)