Chinese tycoons ready to bring back US$5b-$10b

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)