Gus Dur to meet S&P about RI credit rating

JAKARTA (JP): President Abdurrahman Wahid is planning to meet international rating agency Standard & Poor's Corp. (S&P) in New York early next month in a bid to help improve the country's credit rating, according to a close aide.

Head of the National Business Development Council (DPUN) Sofyan Wanandi said on Friday that the visit would be part of the President's June overseas trip.

"Gus Dur will meet S&P next month to provide more objective information on Indonesia. This should help improve our credit rating," Sofyan said in a news conference, referring to Abdurrahman's popular name.

He explained that the country's poor credit rating had caused an increase in the interest rate charged to local industries, thereby placing more of a burden on the heavily indebted private sector.

DPUN provides second opinions to the President on business issues.

Members of the council also attend a regular weekly meeting with senior economics ministers and the President.

In April, S&P cut its long-term foreign currency issuer credit rating on Indonesia to SD, or selective default, from CCC+, and lowered its short-term foreign currency issuer rating to SD from C.

The rating downgrade spooked both the local stock and currency markets.

Sofyan added that Abdurrahman had ordered finance minister Bambang Sudibyo to be more active in providing the international business community with information about the country's economic achievements and prospects.

But Sofyan acknowledged that improving the domestic political and security condition was crucial to improving Indonesia's country risk and reviving investors' confidence.

He said the current political uncertainly had unsettled both domestic and foreign investors.

"Many businessmen informed me that they would maintain a wait- and-see attitude because of the current political infighting and poor security condition," he said.

He appealed to Indonesia's prominent political leaders particularly the President, Vice President Megawati Soekarnoputri, Speaker of the People's Consultative Assembly (MPR) Amien Rais, and Speaker of the House of Representatives Akbar Tandjung to put aside their political differences to join hands in recovering the crisis-hit economy.

He regretted that a planned meeting of the four leaders scheduled for Friday was canceled.

"The four leaders must be able to show to the world that they're united. This will increase the credibility of the Adurrahman administration and help boost confidence," he said, pointing out that efforts to unseat the President at August's MPR General Session, the continuing security problem and clashes in several parts of the country had worried investors.

"I'm convinced that there will be no impeachment of Gus Dur ... But the foreigners may not necessarily think the same way," Sofyan added.

Analysts said that the differences among the four political leaders had intensified, particularly due to the recent dismissal of Laksamana Sukardi and Jusuf Kalla from the Cabinet.

Laksamana is an executive at Megawati's Indonesian Democratic Party of Struggle (PDI Perjuangan), while Kalla is from the Golkar Party.

Sofyan also said that the legal process against former president Soeharto must be immediately completed.

"Students will not be quiet if this problem is not immediately resolved," he said.

Anti-Soeharto students and hundreds of onlookers took part in a demonstration in Central Jakarta on Friday, burning at least five vehicles belonging to the Indonesian Military (TNI).

The students were angry at the security officials after police beat more than a dozen students on Thursday when they tried to move toward the residence of the former authoritarian leader.

The students had been demanding that the government immediately take legal action against Soeharto, who has been accused of corruption and abuse of power during his 32 years in office.

"We must help improve the credibility of the administration of Gus Dur because, like it or not, this a legitimate government," Sofyan said.

"It's difficult to sell (the country's economic prospects) if there's no credibility in the government," he added. (rei)