Hamzah tells political elite to fully back recovery plans

Annastashya Emmanuelle, The Jakarta Post, Nusa Dua, Bali

Vice President Hamzah Haz called on the members of the country's political elite on Wednesday to help create a conducive atmosphere to encourage foreign investors to put their money back into Indonesia, arguing that economic recovery programs needed to be backed up by supportive political conditions.

"I would urge the country's political elite to focus on restoring our economy," Hamzah said on the sidelines of the Asia- Pacific Economic Cooperation (APEC) Construction 2002 conference in Nusa Dua, Bali, on Wednesday.

Indonesia's economy has been in the doldrums since the financial crisis struck in 1997, and efforts to revive it have been eclipsed by political squabbling among the elite.

According to the latest survey conducted by the Hong Kong- based Political and Economic Risk Consultancy (PERC), Indonesia came in second after India as the most unattractive country to investors.

According to data from the Investment Coordinating Board (BKPM), foreign direct investment approvals fell by 41.5 percent from US$15.42 billion in 2000 to $9.02 billion in 2001.

The Vice President admitted that Indonesia had provided an unfriendly environment for investors over the past several years, and stressed that all efforts to revive the country's economy would be in vain if they were not supported by conducive political and security conditions.

"If the political elite are slow in responding to the needs of investors, our economic situation will continue to worsen," he said.

In his opening address to the International Conference on Advancement in Design Construction, Construction Management, and Maintenance of Building Structures -- APEC Construction 2002, Hamzah said that Indonesia was in the process of creating a more stable, democratic country that upheld the supremacy of the law and human rights.

He also called on members of the Asia Pacific Economic Cooperation (APEC) forum to adopt common strategies in the upcoming free trade era as all countries would be afforded equal opportunities to market their products.

In the spirit of togetherness among members, industrialized countries should refrain from focusing on their interests alone by depriving other countries of opportunities to market their products, he said.

"It is no longer the time for industrialized countries to continue to enrich themselves while developing countries are left lagging far behind," he said.

"I truly hope that members of the APEC forum can assist one another in the spirit of solidarity in facing AFTA 2003 and the free trade era," Hamzah told the 243 conference participants from 18 APEC member countries.

The conference -- attended by construction experts and companies -- is aimed at establishing international construction standards among APEC countries, while the participants are also expected to exchange experience and expertise.