Foreign investors losing interest in RI: Consultant

Foreign investors losing interest in RI: Consultant

JAKARTA (JP): A political risk consultancy firm warned on
Thursday that the country's lingering political woes and
uncertainties, which have already discouraged new investors from
entering the country, could also prompt existing investors to
review their Indonesian operations.

James Van Zorge, senior partner of Jakarta-based Van Zorge,
Heffernan and Associates, said the memorandum of censure issued
by the House of Representatives in February this year criticizing
President Abdurrahman Wahid over his alleged involvement in two
financial scandals had aggravated the country's political
uncertainties, further discouraging investors.

"The issuing of the second memorandum to move for impeachment
will add more uncertainty as to the country's future leadership.
This uncertainty could fuel the departure of foreign investment
from Indonesia," Van Zorge said in a statement.

Abdurrahman has been accused of involvement in graft in
relation to a cash donation from Brunei's Sultan Hassanal Bolkiah
and the misuse of funds belonging to the National Logistics
Agency (Bulog).

Van Zorge said investors were basically risk-takers, but they
needed "reasonable political certainty to balance the risk".

"They don't care too much who is in power as long as it is a
government they can work with and have a reasonably certain
outcome. They are also willing to live with corruption, as long
as the extent of corruption can be factored into the cost of
doing business," he said.

In order to identify the country's problems and devise a
strategy to overcome the problems, the consultancy firm will hold
a two-day seminar titled "Indonesia Next: Emerging from the
Crisis," on April 19 and 20.

The seminar will feature many noted figures, including Lt.
Gen. (ret) Prabawo Subianto, a former commander of the army's
strategic reserves (Kostrad); East Timorese independence leader
Xanana Gusmao; former commander-in-chief of the Indonesian
military Gen. (ret) Wiranto; Coordinating Minister for the
Economy Rizal Ramli; the World Bank's country director in
Indonesia Mark Baird; and the former IMF managing director for
Asia Pacific Hubert Neiss.

Also on the list of speakers are several leading experts on
Indonesia, including Jeffrey Winters, Adam Schwarz and Harold
Crouch. (jsk)