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.