Megawati expresses optimism for Indonesia's future

SINGAPORE (JP): Vice President Megawati Soekarnoputri expressed optimism on Wednesday that Indonesia would overcome its economic and political crises and enjoy a better and more certain future.

Addressing some 150 participants of a forum of international business executives during her two-day working visit to Singapore, Megawati said Indonesians had a strong fighting spirit and would survive the most difficult situations.

"Amid such a difficult situation, which has never happened before in our modern history, a major part of our nation will continue to struggle for our survival. We will use our spirit as an asset to recover from the crisis," she said.

"I am optimistic that we will be able to get through and see a better and more certain future."

The Vice President conceded that Indonesia had been dealing with seemingly overwhelming social, political and security problems since the economic crisis hit the country in the middle of 1997.

"We want to solve all the problems, but we cannot do it at once and, therefore, we have to prioritize.

"But many people are no longer patient and want revolutionary changes," she said.

She said Indonesia had numerous fundamental weaknesses that contributed to the current complex problems, and needed to foster a conducive climate to attract more foreign investors to the country.

The Vice President said Indonesia needed foreign investment to help ease its 6 percent unemployment, but foreign investors were reluctant to put their money into the country because of the numerous labor actions.

"Besides internal factors, our feeble investment environment has contributed to the foreign investors' reluctance to invest in Indonesia."

She said the hasty implementation of regional autonomy also fostered uncertainty among local and foreign investors.

The Vice President promised that Indonesia would continue with its reform agenda to cope with the country's fundamental weaknesses and the large challenges it faced in the future.

"Over the last two years, we have worked hard to restructure our institutions in the political, economic and defense fields.

"Reform of the presidency, the legislative body and the Supreme Court has gained serious attention. We have also reformulated the composition and function of the military and the National Police, and the multiparty system in an effort to empower all these institutions to function optimally," she said.

Some businesspeople and executives at the forum expressed their commitment to invest in Indonesia when the political situation returned to normal.

Wilson Goh, the power system manager at Trakindo Utama Service Pte. Ltd., admitted that foreign investors were reluctant to invest in Indonesia because of the political instability and the absence of legal certainty in the country.

"Indonesia should first maintain its political stability and enforce the law to ensure business certainty for investors. We won't invest if our factory will only be damaged by the workers.

"Therefore, political stability, legal certainty and security must be maintained to attract foreign investors," he said.

Tong Djoe, an Indonesian businessman who also has companies in Singapore, agreed, saying many foreign investors have parked their capital in Singapore and have declined to invest in Indonesia because of the political instability and recent violent unrest in the country.

"It is impossible for foreign investors to do business in Indonesia if the political situation is unstable," he said.

Michael Morris, a Singapore-based British businessman, called on Megawati to take over the presidency from Abdurrahman Wahid to salvage Indonesia.

"Our question is when will Megawati comes to power as Arroyo (Gloria Macapagal Arroyo) has done in the Philippines. We are sure that she will be able to lead Indonesia and Indonesia will achieve progress under her leadership," he said.

Megawati was due to pay a courtesy call on Senior Minister Lee Kuan Yew on Wednesday afternoon before leaving for Jakarta.

Last Saturday, Senior Minister Lee met with President Abdurrahman Wahid and three of the President's foreign economic advisers in Jakarta, to discuss efforts to help bring Indonesia out of its crisis.

Minister Lee also met with House of Representatives Speaker Akbar Tandjung, People's Consultative Assembly Speaker Amien Rais and former Indonesian Military chief Gen. (ret) Wiranto to garner their opinions on the current conditions in the country. (rms)