Investors, experts seek clean and stable government

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)