Tue, 26 Mar 2002

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.