British firms upbeat about Indonesian economy

JAKARTA (JP): British business executives expressed confidence in the Indonesian economy after meetings with their local counterparts and top government officials on Wednesday.

Members of a visiting British business delegation were impressed by the government's economic recovery plan, said cochairman of the Indonesia British Business Council Alan Jones.

"There is a new attitude (from the government) toward the banking and financial control, and all of that is very positive to us," Jones, who led the 15-strong delegation, said on the sidelines of the meeting.

The delegation includes representatives from engineering company AMEC, water supplier Thames Water, Rolls Royce, oil and gas company BP Amoco and financial institutions HSBC Holding and Schroders. All of the above firms are public limited companies (PLC), or publicly listed.

Indonesian companies taking part include retailers Matahari Group and HERO Group, state Bank Negara Indonesia and petrochemical company PT Chandra Asri.

Group chief executive of HSBC Holding Keith Whitson said Indonesia still offered fundamental strengths. "If one looks at the overall makeup, one has to be confident," he said.

The three-day visit, the first foreign business delegation to the country since the election of President Abdurrahman Wahid in October, came at the invitation of Minister of Foreign Affairs Alwi Shihab.

Alwi and State Minister of Investment and State Enterprises Development Laksamana Sukardi attended the opening of the meeting.

In his opening speech, Laksamana promised to simplify investment procedures by empowering Indonesian embassies abroad to authorize initial investment steps.

The government is also determined to strengthen the legal framework for foreign investors, he said.

British Ambassador Robin Christopher said the meetings with the delegation were an opportunity for Indonesia to send a positive message to foreign investors.

British companies have invested an accumulative total of $38 billion since Indonesia opened its doors to foreign direct investment in 1967, according to the embassy.

Christopher said he was pleased that Britain was invited to send the first business delegation to Indonesia and that the delegation's response was encouraging.

Chairman of the British Committee at the Indonesian Chamber of Commerce and Industry, Suryo B. Sulisto, said the delegation showed the strong commitment of the British business community. (03)