Mega woos U.S. businessmen for investment

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.