Investments safe in RI, says ABRI

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)