'General election will not jeopardize property investment'
'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)