Businesspeople demand political stability

JAKARTA (JP): Location, location, location.

Once this was the mantra chanted faithfully by a noted business figure in the country, declaring his philosophy of the most important thing in conducting his business.

Today, however, most every player in the economy -- from high- profile tycoons to small retail owners, from portfolio investors to street food vendors -- agree on the one thing they need to maintain their businesses.

Political stability.

With charred ruins of the May riots left as ugly reminders for Jakartans of the catastrophe, fresh outbreaks in the last two weeks, although much anticipated, presented a horrible reality.

They showed that after all the promises of protection churned out by the government, the city is still plainly vulnerable to vandalism, looting and other destructive acts.

It instills little confidence in the country's private sector.

Anton J. Supit, the chairman of the Indonesian Footwear Association, said: "People don't feel safe anymore."

Anton said businesspeople were taking a wait-and-see stance before making any major business decisions until the general election scheduled next May. Many have even left the country to find a safe haven to protect their families and possessions.

"The government has been trying to appease the public. But there is no guarantee there will be no unrest here."

In 32 years under Soeharto's rule, most businesspeople -- basking in the gains of high economic growth for years -- chose to turn a blind eye to government irregularities and contented themselves with earning money. Speaking out would have been too risky for their privileges.

Nowadays, however, many, like Anton, would rather talk about politics than a moribund business sector.

Anton said the nation's vulnerability to social upheaval was a consequence of the illegitimacy of the current government under President Habibie.

"Habibie's government is democratically unacceptable... which had led to a number of unrest outbreaks," he said.

Habibie, then vice president, replaced Soeharto on May 21 after the latter resigned following massive unrest and public pressure. The administration of Habibie, a protege of Soeharto, is seen by many as an extension of the latter's New Order.

Such skepticism is shared by A. Safiun, the chairman of the Indonesian Automotive Parts and Components Industries Association.

"Frankly, I don't expect too much from the current government. It lacks credibility."

Safiun expressed doubt about the government's seriousness in ensuring security.

Political upheaval and social uprisings have inflicted a grave impact on small entrepreneurs.

Herry, an electronics vendor at Palmerah market in West Jakarta, said he lost over Rp 100 million (US$1,353) during the orgy of looting and destruction in May.

Herry questions the "goodwill" of the military officials who guard the market today.

"They're no use to us. If they have goodwill to help the people, why didn't they guard the market during the unrest so our shops didn't get looted and burned?"

He now sells items with lesser values which sell faster such as fans, mini stereo sets and televisions. Even these are harder to sell because of plummeting consumer spending power.

Tini Hadad, chairwoman of the Indonesian Consumers Foundation (YLKI), criticized the military for dealing only with student protests rather than guaranteeing security for daily business activities.

Security is particularly important now that four major events are approaching: Christmas, New Year, Idul Fitri and the Lunar New Year, she said.

Without a guarantee of security, supplies of goods will be scarce and prices will skyrocket, she said.

Tini said the government's seeming lack of credibility is a time bomb ticking away and threatening to shatter the nation's peace once again.

"It is a source of dissatisfaction that could lead to the eruption of upheaval."

There are a small group of people who are still enjoying profits despite the gloomy picture around them.

Irwandy Muslim, the secretary-general of the Indonesian Textile Association, said the economic crisis had attracted many foreign entrepreneurs to buy textiles and garments straight from the producers and sellers in Indonesia.

Businesspeople from Africa and the Middle East flock here, even during the height of the unrest, to buy textile products to be sold back home at higher prices, Irwandy said.

Formerly, the businesspeople imported Indonesian-made textile products from firms in Hong Kong, Singapore and Taiwan.

"Maybe they're already accustomed to instability, even wars, in their countries," he said. (bnt/das/yan)