'General election will not jeopardize property investment'

JAKARTA (JP): The impending general and presidential elections will not endanger long term property investment, an observer said yesterday.

"In our assessment, the current sociopolitical situation in Indonesia will not be detrimental to the property market," said managing director of property consultants PT DTZ Debenindo, Victor Chan.

Chan acknowledged that growing political tensions such as the recent riots have caused fear among property developers.

Many of the property developers have postponed or even aborted their investment decisions, he said.

Chan said that uncertainties have been mainly caused by reports in the Western media, which have not been supported by a sound understanding of Indonesian politics.

"Just a couple of weeks ago, a key representative of a wealthy investment institution in the Middle East told me that his organization was keen to invest in Indonesia but abandoned the idea due to reports in CNN and other agencies " he said.

"Many banks in Indonesia are now flush with liquidity, as most businessmen prefer to wait out the elections," said Chan, originally from Singapore, in his presentation, "Indonesian Property. Benefiting from A Unique Market".

Indonesia will hold general elections for the 500-member House of Representatives in May. The People's Consultative Assembly whose members include the House of Representatives will elect the President in April 1998.

At a recent seminar Chan said those who have carefully studied Indonesia's culture and history would not believe that media depictions of instability.

According to Chan, the sociopolitical situation would normalize soon after the general elections.

"Most observers agree that the outcome of the two elections will lift business confidence and optimism in Indonesia," Chan said.

Chan said reports of political tension in the Western media implied that chaos was looming in Indonesia or that a coup was likely.

"My colleagues and I prefer to see these incidents as a domestic dispute that can be peacefully settled soon," he said

"It's true that some of the family members have spoken very loudly, but there are no indications that there is a real fight," he said.

Institution

Chan pointed out that within Indonesia there are institutions such as musyawarah (consultation) and mufakat (consensus) which allow a peaceful resolution of conflict.

Traditionally, Indonesians tend to regard problems as flexible. This is expressed in the phrase semua bisa diatur (everything can be arranged).

He said the system, which President Soeharto has established over 31 years, would not be easy to dismantle.

"Even after he is gone, the tendency to avoid confrontation and open conflict and the desire to solve problems peacefully through musyawarah and mufakat is likely to prevail," he told the seminar organized by the Singapore-based property consultant Edmund Tie & Company and the Hong Kong-based real estate agent CY Leung & Company

Besides in Jakarta, a similar seminar will also be held in Singapore, Kuala Lumpur and Hong Kong, ending on April 25. (jsk)