Megawati told to regain lost market confidence
Megawati told to regain lost market confidence
By Fabiola Desy Unidjaja and Kornelius Purba
TOKYO (JP): Japanese business leaders and top government
officials told visiting President Megawati Soekarnoputri that
they were ready to make more investments and provide additional
money to Indonesia if the President was able to realize her
promise to restore political stability, create good governance
and strengthen law enforcement.
They told her on Wednesday that Indonesia remained lucrative
for Japanese investors.
Bank of Tokyo-Mitsubishi deputy chairman, Kenji Yoshizawa,
said during a breakfast meeting hosted by Takashi Imai, chairman
of the powerful Keidanren, "We really want to help your
government and expand our businesses in Indonesia, although I
have to acknowledge that there are still a lot of things to do to
create a conducive investment climate."
Yoshizawa also reminded the President that the Japanese market
was waiting for the government's measures in resolving several
problematic Japanese projects in Indonesia.
He said that the completion of a planned sale of government
shares in Bank Central Asia, the country's largest retail bank,
would help lift investor confidence.
Megawati and her entourage arrived in Tokyo on Wednesday for a
five-day visit.
Investor confidence had plunged following the 1997 economic
crisis and the ensuing political and security problems that still
persist until now.
Since assuming power in late July, Megawati has promised to
restore investor confidence. She has formed a credible Cabinet
team welcomed by both the financial market and foreign creditors.
The role of foreign investors is seen as a crucial factor to
help recovery of the country's ailing economy. Japan has been
Indonesia's largest foreign investor.
Takeyoshi Watanabe, president of the Jakarta Japan Club
Foundation, an association of Japanese companies operating in
Indonesia, submitted a 10 point-proposal to Megawati.
The restoration of security certainty, public order, poor law
enforcement and the issuance credible government policies are
among the points raised by Watanabe in the meeting.
The problem of power shortages, especially in Jakarta, West
Java and Banten, where most Japanese enterprises are operating,
was also raised during the dialog with the President.
Megawati thanked the support of the Japanese government and
private sector in helping Indonesia out of its prolonged economic
and political chaos.
"We will never forget that Japan has continued to help us in
our difficulties, despite the fact that Japan also has been beset
by economic problems during the last 10 years," the President
said in a speech.
She also promised to consistently implement economic reform
programs to help create a better investment climate at home.
In responding to the Japanese concern about the situation in
Indonesia, Megawati said: "If we (could in the past) managed them
(the problems), there is no reason why we cannot overcome similar
threats today and tomorrow.
"The challenge we are facing is formidable, but our people and
country have experienced many difficulties and we have survived
each time," she added.
After the meeting, Megawati received three Japanese ministers,
including Finance Minister Masajuro Shiokawa.
In the afternoon, Megawati received leaders of Japanese giant
firms, including Marubeni Corp president, Tohru Tsuji.
Marubeni has not been able to resolve its dispute with IBRA on
the fate of its US$700 million loan to petrochemical firm Chandra
Asri.
She also met with Shijiro Shimizu, president of Mitsui, whose
company is also involved in the problematic Paiton power plant
project.
Separately, Megawati also invited Japanese investors to invest
in 17 new oil and gas fields to be tendered soon by the
government.
In a energy seminar, organized by Nikkei Daily Newspaper on
Thursday, President Megawati Soekarnoputri introduced a
government program to enlarge exploration in the oil and gas
sector, and to promote the investment potential of eastern
Indonesia.(dja/prb)