Investors want powerful partners

JAKARTA (JP): Foreign investors prefer Indonesian businesspeople with political power to become their partners in establishing joint domestic ventures, Chairman of the Indonesian Chamber of Commerce and Industry Aburizal Bakrie says.

"This tendency is not healthy," he told reporters here.

He said that the tendency is caused mainly by the fact that the government accelerates licensing processes for such businesspeople.

Aburizal was quoted on Wednesday by Kompas suggesting that foreign investors avoid using these businesspeople as the focus for considerations in creating business partnerships in Indonesia.

Using a businessperson's level of political connections as the main point for partnership considerations indicates that some foreign investors have short-term visions in doing business in Indonesia, he said.

He said foreign investors should give a higher priority to the management and business culture of the domestic partners in their considerations for establishing joint domestic ventures, because management and business culture are more permanent than political power.

Aburizal, who is also chairman of the Bakrie Group, acknowledged that it is very important for Indonesian companies to invite foreign partners to set up joint ventures in order to seek the transfer of technology, besides looking for their participation in equity investment.

The equity participation of foreign investors will help reduce the debt burdens of Indonesian companies and strengthen their capital structure, he added. (riz)