Indonesia strives to woo investors

Indonesia strives to woo investors

SINGAPORE (JP): President Abdurrahman Wahid appealed here on
Saturday to the international community, including ethnic Chinese
Indonesians, to reinvest their capital in Indonesia with the
promise of equal and fair treatment for all.

Speaking on the first stop of an eight nation southeast Asian
tour, with wily political tact, the President even spoke a few
welcoming words in Chinese to a gathering of businesspeople.

Abdurrahman also underlined that despite being the largest
Muslim state in the world, Indonesia would not discriminate
against others and that the nation's laws would be upheld.

Speaking at a joint press conference with Singapore Prime
Minister Goh Chok Tong and in a separate address to about 500
international investors here, Abdurrahman asserted that wooing
back investors would be a top priority for his government.

Abdurrahman also pledged his commitment to market oriented
economic principles. He said that with the restoration of social
and political stability under a strong legitimate government,
Indonesia was again an attractive investment destination.

This is Abdurrahman first trip abroad since being elected
President on Oct. 20.

The decision to visit fellow members of the Association of
Southeast Asian Nations (ASEAN) is perceived by many observers as
a reinforcement of Jakarta's desire to continue to play a strong
role in the 10-member regional grouping.

Abdurrahman made a strong call for solidarity between ASEAN
member states, and urged the region to continue helping
Indonesia.

"Indonesia cannot progress alone. It must develop together
with its ASEAN friends and in other parts of the world," he said.

Abdurrahman, who is also known as Gus Dur, also said that
Islam in Indonesia would never become a threat to non-Muslims.

He said Islam was a powerful force in Indonesia, but that
religion and the state should be separated in accordance with
their respective roles. He acknowledged that convincing people of
such a viewpoint was not always easy.

"We have to educate them, that the relation between the state
and religion is indirect. Islamic law will not become national
law," the President told a packed business gathering at the
Shangri-La Hotel here.

The President received a warm welcome and a standing ovation
from the attendees, which included Indonesian tycoon Liem Sioe
Liong, Lippo Group owner Mochtar Riady and property businessman
Ciputra.

During his 50-minute speech at the gathering, which was
followed by a question and answer session, he was accompanied by
Singapore's Minister of Industry and Trade George Yeo.

Abdurrahman's visit to Singapore was seen as a direct bid to
woo back substantial parked funds which occurred as a result of
the capital flight from Indonesia following the May 1998 riots.

Some estimates put the parked funds at some US$30 billion.
Many ethnic Chinese Indonesian businessmen also reportedly fled
to Singapore.

Abdurrahman went out of his way to point out that his
ancestors came from China and that one of his daughters, Inayah
Wulandari Rahman, was studying Chinese literature at the
University of Indonesia.

"There is a Chinese element in my blood," he said.

Aceh

Speaking of the restive province of Aceh, Abdurrahman said he
had begun to implement major policies to resolve the crisis. He
said they included replacing the Bukit Barisan military commander
with a native Acehnese, Lt. Gen. Fachrul Razi, as deputy chief of
the Indonesian Military (TNI).

He also claimed that he had received a telephone call that day
from the leader of the separatist Free Aceh Movement, Hasan Tiro,
had accepted his invitation to directly negotiate with the
Indonesian government.

"We will meet soon," Abdurrahman said.

However, Hasan, who resides in Sweden, later vehemently denied
having any contact with Abdurrahman about Aceh's independence.

"I have received neither a telephone call nor mail from
President Wahid," Hasan told AFP in Stockholm.

"I have nothing to do with Wahid ... This is just propaganda
aimed at calming the people of Aceh."

During a luncheon hosted by Goh to honor the Indonesian
President and First Lady Sinta Nuriyah, the Singapore prime
minister praised Abdurrahman for his moderate views.

"Your fight against extremism and bigotry is well known.
(That) you advocate religious tolerance and racial bigotry is
well known," said Goh.

Goh told Abdurrahman that Singapore would form an economic
team to assist Indonesia's recovery.

During a later joint media briefing, Goh expressed confidence
that the Indonesian economy would be stabilized, although he
urged the people to be patient because recovery would need time.

"The President deserves a longer honeymoon period," Goh said.

After six hours in Singapore, the President and his entourage
flew on Saturday afternoon to Kuala Lumpur and held bilateral
talks with Malaysian Prime Minister Mahathir Mohamad.

According to Malaysian Foreign Minister Hamid Albar,
Abdurrahman requested a $200 million rice credit.

The additional request was made after Jakarta had earlier
obtained a $100 million loan made through an investment arm of
Malaysia's state-owned oil firm Petronas.

"Indonesia does not have enough rice because of the problems
that they have, and they don't have enough foreign exchange," he
said after an hour-long meeting between Abdurrahman and Mahathir.

"We'll encourage Petronas if possible to further increase the
credit line. It's up to Petronas to decide," he added.

From Kuala Lumpur, the President will fly on Sunday to Myanmar
and then depart in the afternoon to Bangkok.

The President will travel on Monday to Laos for a brief visit
before leaving for Cambodia. On Tuesday he will be in Vietnam
before traveling to the Philippines as part of his introductory
visit to ASEAN members.

The President is expected to fly on Tuesday to Salt Lake City,
Utah, the United States, for medical treatment, which could be
followed by a meeting with U.S. President Bill Clinton. (pub)