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)