Foreign firms not deterred by riots
SURABAYA (JP): Despite last weekend's major rioting in Jakarta, foreign businesspeople seem unconcerned about making new business deals with Indonesian partners.
Executives of eight U.S. companies, all from Minnesota, have been seeking new business relationships in East Java for the last two days.
"Indonesia has always had stability. We believe this will resolve soon. It doesn't influence our mission," said Henry Florentius, the Asia Trade Representative of the Minnesota Trade Office, who brought the Minnesota businesspeople here.
Violent riots rocked Jakarta last weekend, killing three people, injuring over 20 and causing widespread damages to property, including the burning and stoning of 22 buildings, official figures said.
Florentius noted that such riots are commonplace at pre- election time in any country.
Guy W. Miller, president of Encore Technologies, shared Florentius's view, saying that the riots would not discourage U.S. firms to seek business opportunities in Indonesia, considering its huge market size.
"Yes, we are concerned about what's happening. But we see it as an internal matter and we feel confident that we are not the targets," Miller told The Jakarta Post here yesterday.
At a separate occasion, Gannet Pontjowinoto, head of PT Surveyor Indonesia's Singapore branch, said that currently, businesses in Singapore are taking a wait and see attitude following the riots.
"It is true that they take a closer look now. But after everything is settled, then they will come here again because Indonesia is their market," Gannet told the Post.
The government has hoped that the riots will not significantly discourage foreign investment from coming to Indonesia, considering that the country's economic fundamentals remain sound.
"We hope the impact will be rather negligible because things like this occur everywhere," said State Minister of Investment Sanyoto Sastrowardoyo.
State Minister of National Development Planning Ginandjar Kartasasmita added that there will be no significant increase in Indonesia's country risk rating despite the recent riots.
"Risk rating depends on various factors ... but I do not see it increasing significantly even in the near term," Ginandjar said. "I think the security people have handled the riots wisely and effectively."
Ginandjar acknowledged that the riots would still have short- term impact on the country's investment.
The most telling damage of the riots on investors confidence was the drop on the Jakarta Stock Exchange (JSX), when panic selling hit the market on Monday and Tuesday.
Foreign investors remained absent for most of the week but returned later in the week to cash in on cheap stocks. The JSX composite index rebounded yesterday to 560.96 from 548.93 Thursday. (27/rid)
Confidence -- Page 10
JSX -- Page 11