Japan's investors adopt wait-and-see attitude on Indonesia
Japan's investors adopt wait-and-see attitude on Indonesia
JAKARTA (JP): Japan External Trade Organization (JETRO)
president Ikuta Shoichi said on Monday that Japan was still
optimistic about Indonesia's economic future but investors had
adopted a wait-and-see attitude for the new government to be
formed.
Shoichi told reporters that national instability due to
political uncertainty and corruption, collusion and nepotism
(KKN) had affected the economic sector.
"The prevailing social unrest and KKN practices have tarnished
Indonesia's image in the eyes of Japanese investors," he told a
news conference held to announce JETRO's participation in the
Resource Indonesia Exhibition in Jakarta later this month.
He added that investors are waiting for the new government to
be formed and hoped that stability could be restored to create a
favorable economic condition for investors.
According to the Investment Coordinating Board (BKPM),
Japanese investment licensed in the first eight months of this
year totaled only US$318.5 million, compared to $1.33 billion in
1998.
Shoichi also stressed the importance of transparency, clarity
and consistency of regulations and efficient licensing procedures
to attract foreign investors.
JETRO is an organization which was founded by Japan's
government to promote Japan's imports from developing countries
and initiate economic development from the export sector.
Since it begun operation in Indonesia 40 years ago, JETRO has
assisted at least 200 small and medium local companies to improve
the quality of their products through technical assistance,
consultation, training and promotional activities, Shoichi added.
The organization, he added, also provides market information
to Indonesian companies to help them penetrate the Japanese
market.
He said JETRO also cooperates with the National Agency for
Export Development (BPEN) to boost exports by small and medium
scale companies.
"A highly competitive market demands quality products that
meet international standards," he said, adding that Indonesian
companies must improve its competitiveness with other developing
countries.
JETRO, he said, would continue to promote Indonesia among
Japanese investors and importers.
Shoichi said his organization would display various furniture
and handicraft products from ten local companies under its
technical assistance program in the upcoming trade fair in the
Kemayoran area from Oct. 20 to Oct. 24. (06)