Foreign executives laud Abdurrahman

Foreign executives laud Abdurrahman

SINGAPORE (Agencies): Foreign businesspeople said they were
impressed by Indonesian President Abdurrahman Wahid's pledges of
market-driven policies but added that they won't rush to invest
in Indonesia just yet.

In a pitch to Singapore's wealthy business community on
Saturday, the newly installed Indonesian president pledged to
"stick to the principles of the profit motive" and promised to
root out corruption.

Wahid, who was elected on Oct. 20, was in Singapore to kick
off a tour of neighboring countries in an effort to lure back
investors, especially Chinese Indonesians who fled the country at
the height of the anti-Chinese riots in May 1998.

During his speech, attended by about 400 businesspeople, Wahid
explicitly courted Chinese executives, promising evenhanded
treatment for ethnic minorities in Indonesia.

"The president has sent a very friendly message," said Chew
Thiam Keng, group general manager of Singapore's Kian Ann
Engineering Ltd.

"I think the message from the president is very, very clear
that they definitely welcome investments back," he said. But he
added: "We will go back gradually. I don't think there will be a
rush overnight."

Prominent Chinese-Indonesian businessman Tong Djoe, chairman
of Manlly International Corp., said a stable government and
steady economy are vital to any investment decision.

"This is just a beginning," Tong said when asked whether the
current situation is already conducive to investment. "And if you
do something, you must do it one step at a time."

Loke Poh Lam, Singapore general manager of Arab Bank Plc, said
only the risk-taking entrepreneurs will "plunge in before the
rest does."

He remains hopeful that economically influential Chinese
Indonesians will return since they already are familiar with the
market.

His view was shared by Lee Ching Yen, who is an adviser to a
textile factory in Indonesia.

"Even with the bad experience, they are taking a very serious
look on the possibility of going home," Lee said.

Many Chinese Indonesians fled, taking much of their money with
them. Official estimates say up to US$30 billion could have left
the country during 1998.

The return of these funds is seen as key to kickstarting
Indonesia's ruined economy now that a period of relative
political stability has returned under the new government of
President Abdurrahman.

Nippon Oil (Asia) Pte. Ltd., a member of the Nippon Mitsubishi
Oil Group, has revived its plan to set up an office in Jakarta,
said managing director K. Takayama.

The company suspended its plan last year as the political
turmoil reached its climax with the downfall of former strongman
Suharto.

Takayama said the company, which is planning to go into the
lubricant market, will still weigh the risks before making a
decision.

"This is definitely a better time than to invest than last
year," he said.

"But we will still see what will happen next," Taiyo Yuden
(Singapore) Pte. Ltd. general manager Moritaka Fukuda added.

The electronics firm is planning to set up an office and
warehouse in Indonesia.

Sudono Salim, one of Indonesia's best known ethnic Chinese
tycoons and a close associate of ousted president Soeharto said
he plans to bring money back to invest in the recession-hit
country.

"Now that the situation in Indonesia is good, for sure we will
continue to do business there," the Antara news agency quoted
Salim (Liem Sioe Liong) as saying.

It also quoted Salim as saying he would bring back funds held
in Singapore to be invested in Indonesia.

Salim's Jakarta home was attacked and looted during riots in
May 1998 which drove Soeharto from power after 32 years in
office.

Salim rejected claims he had been hiding in Singapore.

"Who says I have been living in Singapore? I still live in
Jakarta," he said.