Chinese-Indonesians expect return of overseas funds

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)