Investors, experts seek clean and stable government

JIMBARAN, Bali (JP): The restoration of public order, law enforcement and the elimination of corruption were identified on Friday by investors and observers here as priorities for the new government if Indonesia wanted to attract foreign capital.

Patrick Alexander, managing partner of Jakarta-Batavia Investment Management Ltd., said foreign investors were increasingly concerned about the possibilities of fragmentation in Indonesia. He said investors also considered the country's legal system to be inefficient and ineffective.

Alexander was speaking at the opening of a three-day seminar here called Indonesia Next. The seminar is addressing the impact of sweeping national changes on politics and business in Indonesia.

He emphasized that for most businesspeople political stability was the highest priority and a key consideration for attracting investors to the country.

Alexander said he hoped that with the election of the new and legitimate government, street protests and widespread violence in the archipelago would end.

Newly elected President Abdurrahman Wahid is scheduled to address the seminar on Sunday in his capacity as chairman of Nahdlatul Ulama (NU), the 40-million strong Muslim organization.

Alexander said that social stability, which is often dependent on political stability, was critical for the business community.

"Investors need to have a clearer view of the market, label stability and cost, threats to plants and equipment," Alexander said

He cited the Bank Bali scandal as a case which the business community was closely following.

"Transparency has allowed us to follow the affairs in great detail, but results are what the investment community needs and we have seen precious few results," said Alexander.

Stu Dean, Indonesian country manager of General Electric, expressed confidence that Indonesia would continue to provide lucrative business opportunities. However, he said the country might need a few more years to recover from the economic crisis.

Former United States ambassador to Indonesia Ed Masters said the new government must work to eliminate the culture of corruption and create an effective system in achieving good governance.

"There is a need to set up a system in which those who violate this norm pay some price," said Masters.

Masters also emphasized the importance of redefining the dual function of the Indonesian Military (TNI) in evaluating the development of civil society.

He acknowledged that because of the military's intensive involvement in politics for many years, it would not be easy for the military to abandon its political role in the immediate future.

"There is a need to give a proper role to the military ... but I do not believe that they would completely return to the barracks," Masters said.

The former ambassador said it was important for the country to improve inter-religious relations throughout the archipelago.

He said the government must be able to play a greater effort in bringing all groups together in order to create a more harmonious society.

Mar'ie Muhammad, former minister of finance from 1993 to 1998 under then president Soeharto, said the restoration of peace and order should be a top priority for the new government.

"The new government should secure strong support from political parties, professionals, the regions and from the international community," said Mar'ie, who is also the chairman of the Indonesia Transparency Society.

To achieve this objective, Mar'ie urged the new Cabinet to form a comprehensive coalition. He said he expected the Cabinet to be more accommodating to all interest groups, including minorities.

"Maintaining firm political support for the process is highly essential, particularly with the participation of foreign investors," Mar'ie said. (prb)