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)