British firms in RI for long term: BritCham

Zakki P. Hakim, The Jakarta Post, Jakarta

John B. Arnold, OBE, chairman of the British Chamber of Commerce or BritCham, was transferred to Jakarta in October 1983, a time when Indonesia's economy was viewed as the sleeping tiger of Southeast Asia.

"Certainly the driver behind my firm's desire to place a senior expatriate in Jakarta was a perception that by 1983 the tiger was at least stirring," Arnold said in the book 400 years and more of the British in Indonesia by Richard Mann.

More than two decades later, he said that today the tiger was stretching its back and maybe beginning to flex its muscles.

"If the tiger is moving, it's certainly just walking, not yet running and has the tendency to go back to sleep again. The trainer should see whether the tiger can now really wake up and roar. It has the potential to do so. But for now, it may be more a pussy cat than a tiger," he told The Jakarta Post.

Nevertheless, he said that the British business community in the country was very receptive to what it was hearing from President Susilo Bambang Yudhoyono as regards his priorities, his views on the role of foreign investment in Indonesia and what needed to be done to attract more investment.

He went on to say that it would be helpful for business players if the current administration defined measurable outcomes which stakeholders could use to evaluate progress.

"We know things are happening, but what and what next?" he said.

However, he warned that while undertaking internal reform, Indonesia had to recognize that global investment flows were being attracted to other places around the world such as China, India and Eastern Europe.

"What Indonesia is struggling to do now is to manage negative perceptions. But then you will need to take it to the next level and create a positive perception that Indonesia is a great place to do business, not just a place where you can do business," said Arnold.

Moreover, he was concerned by the fact that industry players in Europe, particularly in Britain, barely noticed Indonesia on their radar screens.

Firms that had long been established here kept looking for new opportunities in Indonesia, but the country was missing out on investment from new firms emerging in Europe at the moment, he said.

Separately, BritCham executive director Gary Andrews said Indonesia needed to stage a road show or other promotional measures to attract British investors as the country was not really being looked at.

"Indonesia needs to be sold to British investors," Andrews told the Post, adding that highlighting the successes of existing companies was a good way of attracting new investors.

Britain is one of the largest investors in the country, and British firms that have invested here are supportive and prepared to stay here for the long term, he said. But the problem would be to convince new investors.

Investment Coordinating Board (BKPM) data show that approvals for investment proposals from the United Kingdom topped the list in the first six months of the year with investment commitments of US$1.16 billion being made. The UK was followed by Singapore, Canada and Japan.

Andrews noted that BritCham had an interest in seeing Indonesia's economy growing rapidly, and investment, especially from British companies, continue flowing so that its existence became more meaningful.

"We exist because we have a certain number of members, and they are all residents, investors and business players in the country. If that shrinks, our viability is smaller, if it grows, our viability is greater," Andrews said.

"So, we have a vested interest in being able to promote Indonesia as an investment and business destination. But if the government doesn't give us the tools, then we will have a difficult job," he said.