Mega woos U.S. businessmen for investment

Fabiola Desy Unidjaja, The Jakarta Post, New York

President Megawati Soekarnoputri promised to take various measures, including stamping out corruption, to improve the investment climate in the country.

Speaking here in front of U.S. businesspeople on Monday morning (local time), Megawati said her administration was determined to solve problems that had discouraged investors from entering Indonesia.

She noted, however, that the problems should be solved "carefully so as not to create new problems".

Corruption, law enforcement and labor issues are among the main factors behind the pullout of investors from Indonesia. In addition, investors are worried about the upcoming 2004 general election.

"I am personally unhappy with the progress made so far, but we will persevere in our efforts to solve these problems," she said in the speech during a breakfast meeting.

She further said that the Indonesian government was fully aware that despite the achievements made over the past three years in the economic field, there was a lot to be done to ensure a better climate.

Megawati said the government was reviewing a number of confusing regulations introduced following the implementation of regional autonomy.

Investors have also been discouraged by the increasing number of labor disputes over the past few years, which is why the government is reviewing the labor law, the President said.

"At the same time, we continue to accelerate the passage of revised law on investment, to review the negative investment list and to expedite the payment of tax returns to exporters," she said.

The upcoming general election could be a major concern for many investors. However, she said that the government was making the necessary preparations to ensure that the election would be carried out in a safe and fair manner.

Megawati further said that the country was fully aware of its dire need for investment to cut the unemployment rate and increase economic growth in more significant manner.

"Our capacity is still limited, therefore we place our hopes in investors," she added.