Chinese tycoons ready to bring back US$5b-$10b
JAKARTA (JP): Chinese-Indonesian tycoons are preparing to repatriate between US$5 billion and $10 billion in funds they sent out of the country amid the economic and political turmoil of the past two years, a noted businessman said on Wednesday.
Gemala Group chairman Sofyan Wanandi said the tycoons were upbeat about the country's new leadership, but still were taking a wait-and-see attitude until the new Cabinet formed clearer economic and political policies.
"It's just a matter of time. The Cabinet should work quickly to form their policies. The honeymoon should be no longer than two months," Sofyan said during a media conference -- his first since returning to Indonesia after a year away from the country.
Sofyan, who was critical of former president B.J. Habibie's administration, fled the country last year after the Attorney General's Office began investigating him for allegedly fraudulent loans.
He returned to the country after the election of President Abdurrahman Wahid.
Sofyan said with the $5 billion to $10 billion in funds from ethnic Chinese businesspeople, the country could revive its industrial sector, which has remained sluggish over the past two years due to a lack of funds caused by the monetary crisis.
"Once industry is revived, people will see some growth in our economy and other investors will come in," Sofyan said.
Sofyan said his Gemala Group was ready to invest $100 million in the country.
The central bank has estimated that $80 billion owned by wealthy Chinese-Indonesians and foreign investors fled Indonesia after the financial crisis hit in mid-1997 and long-ruling president Soeharto stepped down amid unrest in May 1998.
Business Times daily of Singapore reported earlier a fifth, or $16 billion, of this $80 billion was expected to return to the country soon.
The paper said a number of ethnic Chinese tycoons made commitments to Wahid to bring back to the country this amount currently held in Singapore and elsewhere.
Sofyan put the amount of funds sent out of Indonesia by ethnic Chinese tycoons during the economic and political turmoil at about $10 billion.
Sofyan said during his self-imposed exile in Australia, Europe, the United States, Japan and Singapore, he met with numerous businesses which also expressed optimism over the country's new leadership and expected to return soon.
"They asked me to give the green light anytime it was appropriate for them return to our country," Sofyan said.
Sofyan said investors did not see the new Indonesian economic team as "a winning team", but he said they were not worried as long as the country's economic policies continued to be determined by the World Bank and the International Monetary Fund.
Sofyan said since arriving in Indonesia two weeks ago the Attorney General's Office had not summoned him for questioning over his case.
He said he would take the initiative and visit the Attorney General's Office "in one or two days" to clarify his legal status.
"I am ready for questioning. But the Attorney General's Office must restore my name if it does not find any evidence to support the graft charges," Sofyan said, adding that the Attorney General's Office under Habibie labeled him a fugitive and asked Interpol's help in locating him.
Sofyan was charged with misusing $16 million in loans from Bank Negara Indonesia 1946, Bank Rakyat Indonesia and Bank Bumi Daya.
Sofyan said the company which received the loans was not his but his brother's, adding that he believed new Attorney General Marzuki Darusman would handle his case fairly. (jsk)