Chinese-Indonesians expect return of overseas funds
JAKARTA (JP): The Chinese-Indonesian Association (INTI) has appealed to wealthy Chinese businesspeople to bring back home the billions of dollars they have deposited overseas.
INTI chairman Eddie Lembong said on Monday that the election of new President Abdurrahman Wahid and Vice President Megawati Soekarnoputri would provide social and political stability in the country.
"I'm certain that the money will return home ... the current changes are very promising," he told The Jakarta Post. "We'll take a proactive role in encouraging the inflow of funds," he added.
A massive amount of money has been deposited overseas by Indonesian businesspeople, mostly ethnic Chinese, since the deepening of the country's economic crisis and political unrest last year.
Some estimate the capital outflow reached up to US$80 billion, although many doubt the amount is that large.
"I doubt the figure, I think it's much lower than that," Eddie said.
Eddie could not provide an estimate.
Experts said the return of the money would provide a significant boost to the efforts to end the country's economic crisis.
Sony B. Harsono, a senior partner at KPMG accounting firm, said the return of Indonesians' money would encourage foreign investors to invest in the country.
"But the newly elected government must maintain its credibility and public trust," he said at a media conference.
Sony, speaking on behalf of the alumni of the School of Economics of the University of Indonesia, said that it was important for the new government to take into account market sentiment when making policies to ensure that all the money deposited overseas was returned home.
Eddie conceded, saying: "Market sentiment is an important factor."
Abdurrahman and Megawati have received acceptance from the people after they were elected last week through the country's first democratic election process in more than 40 years.
The two are facing their first test in forming a Cabinet.
There has been increasing pressure for Abdurrahman and Megawati not to include former officials of the Soeharto and B.J. Habibie administrations in the Cabinet on the grounds that they are part of the past corrupt government.
Abdurrahman surprised many people when he invited Subiakto Tjakrawerdaya and Fuad Bawazier late last week to discuss plans to form a National Economics Council, raising speculation that the former ministers of the Soeharto government would be among of the President's aides.
The Jakarta Stock Exchange composite index dropped 2 percent to 604.18 in response to the news.
The University of Indonesia alumni said in a statement that Abdurrahman and Megawati must maintain their credibility by allowing new faces who have the integrity and the commitment to improve the welfare of the people.
Asked whether the ethnic Chinese would also demand to be represented in the Cabinet, Eddie said: "We would be very grateful ... but for us what's more important is that each Cabinet member must fight for the interests of the whole nation, not the interests of a certain ethnic or other group."
"What we need is legal certainty in running business, and equal justice under the law," he said.
Eddie said, however, that equal justice does not mean that the government must immediately introduce free market competition.
He said small businesses must first be upgraded to allow them to compete with stronger entities.
"We'll support any affirmative action programs," he said, adding that INTI would soon launch practical training classes for small-scale businesses. (rei)