Business climate still gloomy: Sofyan
Business climate still gloomy: Sofyan
SEMARANG (JP): The country's overall business climate remains
uncertain despite signs of recovery in some sectors, Indonesian
Business Council chairman Sofyan Wanandi said.
Speaking to reporters during a break in the 14th national
working meeting of the Indonesian Employers Association, Sofyan
said uncertainty in the political field and reports of worker
protests still hampered business.
"The Indonesian people and political elite seem to be
heedless. They are criticizing each other and workers continue
their protests," said Sofyan, who is also the chairman of the
Gemala Group.
The business council, which was established to advise
President Abdurrahman Wahid on business matters, groups top
businesspeople and noted business executives.
Sofyan acknowledged that signs of recovery were seen in
several business sectors, particularly those related to the
activities of small and medium-sized companies.
But most large-scale business activities remain stagnant
because many major businesses continue to face financial
difficulties, while foreign investors, also major players in the
Indonesia's economy, are reluctant to enter the country due to
the uncertainty, he said.
According to Sofyan, Indonesia is entering a critical stage
and if it manages to successfully navigate the current
difficulties, the country will have the opportunity to return its
economy to precrisis levels within a short time.
"But if such inimical circumstances continue until the end of
this year, our savings will evaporate and nobody knows what will
happen in the coming years," Sofyan said.
A conducive political climate, security and legal certainty,
and the proper implementation of manpower regulations are
prerequisites for foreign businesses to invest in Indonesia, he
said.
Minister of Manpower Bomer Pasaribu, who also attended the
working meeting over the weekend, said not all companies could
afford or were willing to pay their workers the new regional
minimum wages. (har/sur)