Malaysian firms in RI stop operations

Malaysian firms in RI stop operations

KUALA LUMPUR (Reuters): A number of Malaysian companies in
Indonesia have stopped operations while waiting for the situation
there to stabilize, local newspapers reported yesterday.

The papers quoted Malaysian Trade and Industry Minister
Rafidah Aziz as saying that political developments and financial
problems in neighboring Indonesia have stopped some of the
companies from carrying on their businesses.

"Some have stopped operations for a while, and others are
thinking of suspending operations but are still maintaining their
workforce," she was quoted as saying by the Sunday Star.

"They are withholding operations not only because of the
present political conditions there but also because financing has
not been forthcoming."

The newspapers did not say when the companies stopped their
operations or the number involved.

Rafidah said Malaysia's investments in Indonesia were quite
substantial. "I do not have the figures but we have a variety of
investments which range from plantations, manufacturing to the
services sector, located not only in Jakarta but in other parts
of Indonesia as well," she said.

Latest figures were not available but it was reported that
Malaysian investments in Indonesia for 1996 totaled about US$4
billion.

Rafidah also urged Malaysian investors in Indonesia to
register with the trade office in the Malaysian embassy to enable
the government to provide assistance.

The situation in Indonesia is beginning to return to normal
after weeks of riots which left more than 500 dead.

Widespread protests against former president Soeharto's regime
led to his resignation and replacement by B.J. Habibie, who
promised to implement political reforms and boost the economy
which suffered its worst slump in decades.