British investors upbeat on RI's economic prospects

British investors upbeat on RI's economic prospects

JAKARTA (JP): British investors remain upbeat about
Indonesia's economic prospects despite the country's worst
economic crisis in decades, according to the Indonesian British
Business Council (IBBC).

IBBC chairman Alan Jones said here on Monday that he believed
Indonesia, with its sound economic fundamentals, would be able to
overcome the crisis by the end of next year and, as with other
emerging countries in the region, investing in Indonesia would be
a smart move.

"I still believe Indonesia will be a significant player in the
region in the next century. As Indonesia emerges from some of its
worst times, we think that it is time to look ahead to new needs
and opportunities," he said.

Jones, who is leading a delegation of officials and
businessmen, held the news conference after a meeting of the
British Committee of the Indonesian Chamber of Commerce and
Industry (Kadin).

Jones said the economic crisis which had been battering the
country since July 1997, would not last long and would not affect
trade ties between the two countries.

"Indonesian economic fundamentals are strong, and we are still
looking forward to increasing our trade and investment
relationship with the country. Indonesia is still very important
to the United Kingdom.

"It is predicted that investment from the United Kingdom will
be less this year in dollar terms but will be higher in terms of
the number of the projects."

Jones and the IBBC delegation met with President B.J. Habibie
on Monday to discuss their opinions on Indonesia's business
climate.

During its three-day visit, which will end Wednesday, the
delegation is also scheduled to meet with State Minister of the
Empowerment of the State Enterprises Tanri Abeng and Minister of
Industry and Trade Rahardi Ramelan, as well as local prominent
business leaders.

British Ambassador to Indonesia Robin Christopher is also
closely involved with the work of the delegation.

The visit is IBBC's second since it was established last year
to bolster the business ties between the two countries.

Trade between the two countries has so far favored Indonesia.
Indonesia's exports to the United Kingdom topped US$1.3 billion
while imports from Britain totaled $1.08 billion last year.

According to the Investment Coordinating Board (BKPM), British
investment in Indonesia, until the beginning of this year, was
$21.2 billion in 245 projects that covered a broad range of
sectors. The UK is the second largest investor in Indonesia after
Japan.

Jones said British investors were interested in the energy,
mining and plantation sectors.

"We are very interested with the government of Indonesia 's
recent deregulation of the energy sector. We are also very
impressed on the government's move to eliminate the collusive
practices in the country," Jones said.

KADIN chairman Aburizal Bakrie said the British investors
believed the Indonesian government's moves to revive the
country's economy were smart and suitable.

"They said that Indonesia's moves are smarter than those
implemented by Eastern European Countries. But they urge the
government to provide political stability here to lure more
investors," Aburizal said.

"They also urged the government to continue fighting the KKN
(corruption, collusion and nepotism) practices. The presence of
foreign investors here will also require fundamental preparations
because they would have to receive the same treatment as local
investors," he added.

KIKI's chairman Suryo B. Sulisto said that the meeting would
discuss a wide range of opportunities in the mining, plantation
and agriculture, and fisheries sectors in addition to the main
focus on energy sector opportunities and the development of
initiatives for small and medium enterprises. (gis/prb)