Megawati seeks investments from China

Megawati seeks investments from China

The Jakarta Post, Beijing

During President Megawati Soekarnoputri's second day in Beijing
she solicited Chinese businesses to invest in Indonesia, pledging
an end to the days of discrimination against the Chinese in the
country which was now focusing its efforts on ensuring stability
and security.

"Chinese investments in Indonesia will not be subject to
discrimination," she told a business luncheon at the Beijing
International Convention Center.

Megawati conceded that "stability in Indonesia had not been
completely restored, but the situation now has significantly
improved."

Megawati arrived here on Sunday, making her the second
president to visit the Asian giant in two years after Abdurrahman
Wahid.

Like Abdurrahman during his visit in December 1999, Megawati
was fully aware of possible fears of discrimination Chinese
businessmen may have when investing in Indonesia.

Political ties between the two countries have only in the past
decade began to thaw after Jakarta's perception of Beijing's
involvement in the failed 1965 communist coup.

It is also widely believed here that ethnic Chinese often
become the target of discrimination in Indonesia. Tight visa
restrictions have also been employed for Chinese visitors going
to Indonesia.

Megawati on Monday underlined that attitudes were changing in
Indonesia, noting that the Chinese New Year had now been declared
a national holiday.

She urged delegates at the luncheon not to hesitate,
expressing confidence that "Chinese businessmen can now play an
even greater role."

She also expressed hope that the Bank of China would resume
its operations in the near future, a key factor in further
boosting bilateral trade currently valued at about US$4 billion.

"This is far below the potential of both countries," she said
of the trade balance, adding that energy, railway, shipping,
petrochemicals and construction were among the many potential
areas.

Meanwhile economist Mari Pangestu, who attended the lunch,
told The Jakarta Post that what was important now was the
follow-up to many of the pledges made.

As a person with a deep understanding of the area, she also
recognized that Chinese businessmen remain hesitant about
Indonesia.

"We have to be more proactive ... better our image," she said.

According to Mari, what would be attractive to Chinese
investors was assurances of long term resource security of
between 30 years to 40 years.

She also believed that share holdings would be an important
incentive.

Apart from wooing the business community, Megawati on Monday
also met separately with Vice President Hu Jintao and former
premier Li Peng.

Li hailed the Indonesian leader and described the bilateral
relationship as very good and cooperative.

He even took a glance at Megawati's lineage, noting that
Megawati's father and first Indonesian president Sukarno worked
closely with then premier Zhou Enlai to forge Asian unity.

On Sunday, Megawati met with President Jiang Zemin to discuss
cooperation in various areas including agriculture, energy and
tourism.

She departs for Pyongyang, North Korea on Thursday on the
second leg of her Asian tour which will also include South Korea
and India.