Kadin sets up promotion agency to lure investors

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) established yesterday an investment, tourism and trade promotion agency in a bid to win back the elusive foreign investor confidence that has deserted the crisis-hit country.

Kadin chairman Aburizal Bakrie said the agency would need at least US$15 million per annum to support its promotion activities.

He said that about $3 million of the total would be allocated to pay a foreign media company to organize a massive overseas campaign starting early next year.

"We have several candidates but we have not decided which media company to use," he told reporters following a ceremony to launch the promotion agency, which is a unit of Kadin.

The promotion agency replaces the government-sponsored overseas Investment and Trade Promotion Center offices which were closed in April due to financing difficulties.

Aburizal explained that financing for the promotion efforts would come from local corporations and business associations. The Lippo Group, Astra International, and Indosat have all agreed to become sponsors.

Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita welcomed Kadin's initiative to organize the promotion efforts because the current economic crisis had slashed the ability of the state budget to finance such activities, which he described as essential considering the low confidence in the country.

"The key to the economic recovery is reviving domestic and foreign investor confidence in the country," he said at yesterday's ceremony.

He promised that the government would implement policies that would help Kadin's promotion efforts.

Aburizal said that the overseas promotion efforts would be spearheaded by the seven special envoys appointed by President B.J. Habibie last month.

The envoys are well-known local business leaders who received diplomatic passports to travel around the globe to try to entice overseas business leaders to reinvest in the country.

Hashim Djojohadikusumo, the special envoy for Europe, said at the ceremony that rebuilding foreign investor confidence would be a tough job.

"They (foreign investors) are not questioning the legality of the (current) government, but are demanding political stability," he said.

Hashim is the younger brother of Lt. Gen Prabowo Subianto who was recently dismissed from the military amid allegations that he was involved in the kidnapings of political activists, which contributed to the May unrest and the fall of former president Soeharto.

The May riots and ongoing political instability have further eroded foreign investors' confidence in the country. (rei)