Investments safe in RI, says ABRI

JAKARTA (JP): Minister of Defense and Security/Armed Forces Commander Gen. Wiranto appealed to foreign investors on Thursday not to leave the crisis-hit country, assuring them the military would maintain security.

Wiranto told around 300 businesspeople from the United States, Europe and Asia that their role was especially crucial in helping to lead Indonesia out of its economic crisis.

"As the commander of the Indonesian Armed Forces, I promise that your investments will be safe here," he told the businesspeople during a meeting at the Armed Forces Headquarters in Cilangkap, East Jakarta.

The Indonesian Chamber of Commerce and Industry arranged the meeting to allow foreign businesspeople an opportunity to receive firsthand information on the security situation, which has seemed fragile following a spate of violent riots in various parts of the country, notably in Maluku, East Timor and West Kalimantan.

"As you may also notice, in this time of economic crisis new excellent business opportunities have sprung up. But it depends on your courage to avail yourself of these opportunities. For my part, I can assure you that any investment you have and make in this country will be well protected."

Wiranto said ABRI had taken a series of strong measures to deal with security problems such as crime and violent riots .

"Among the measures are the order to shot on sight anyone engaged in acts of violence and the swift deployment of troop reinforcements to violence-hit areas. This reflects our strong commitment to maintain security and order," Wiranto added.

Wiranto said any decrease in investment would increase the already swollen ranks of the unemployed and could fuel more social unrest and violent riots.

"I fully understand if you have doubts about making investments right now but I still think new investments need to be made right now to help end the current economic crisis as soon as possible."

"So I encourage you to take bold steps. Invest now. Despite the outbursts of violence in several areas, most of the country is still safe," he added.

The businesspeople asked Gen. Wiranto many questions, including the identity of the provocateurs who have been blamed by ABRI for the recent ethnic and religious clashes and whether these instigators were still free.

They also asked about the safety of driving on toll roads, which at times last year were barricaded by criminals trying to rob motorists.

A Japanese businessman asked whether ABRI would admit Chinese- Indonesians into its ranks and whether the military would protect the ethnic Chinese during violence.

Secretary-General of the Office of the State Minister of Investment Asril Noer, who also attended the meeting, said foreign investment in the country was protected against damage or loss inflicted by war and insurrections, and against nationalization.

"This protection is guaranteed in the Investment Promotion and Protection Agreements the government signed with 45 countries," Asril said.

However, many of the investors remained skeptical of ABRI's commitment and ability to maintain security.

Timothy S. Gray, president of U.S.-based Development Capital, said most businesspeople would wait until after the June 7 general election to decide on investing in the country.

Lt. Gen. Susilo Bambang Yudhoyono, ABRI's chief for territorial development, accompanied Wiranto at the meeting.

James Van Zorge, chief of the political risk consultancy group Van Zorge, Heffernan & Associates, said Wiranto's speech failed to fully assure foreign investors because the commitments he expressed were trite.

"What General Wiranto stated at the meeting merely repeats what ABRI has often promised to do. But I don't think it has fully addressed the investors' concern about ABRI's capability in handling security issues. For example, if violence breaks out simultaneously in several areas, would ABRI be able to control it," Van Zorge asked.

He said foreign investors were greatly concerned about what could happen to their personal safety and their investments between now and the presidential election later this year.

However, Bruce Wallace, a senior trade commissioner at the Australian Embassy, said the meeting succeeded in giving a better sense of security and confidence to foreign investors.

"What Pak Wiranto said is very encouraging. I am sure Australian businesspeople, after hearing ABRI strong pledge, now have a clearer view of the situation," Wallace said. (gis)