Megawati told to regain lost market confidence

FABIOLA DESY UNIDJAJA AND KORNELIUS PURBA The Jakarta Post Tokyo

Japanese business leaders and top government officials told visiting President Megawati Soekarnoputri that they were ready to pour more investments, and to provide more fresh money to Indonesia if the President was able to realize her promise to restore political stability, create good governance and strengthen law enforcement.

They convinced her that Indonesia remained lucrative for Japanese investors.

"We really want to help your government and expand our business in Indonesia, although I have to acknowledge that there are still a lot of things to do to create conducive investment climate," said Kenji Yoshizawa, deputy chairman of the Bank of Tokyo-Mitsubishi, during a breakfast meeting hosted by Takashi Imai, the chairman of the powerful Keidanren.

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 added that the completion of the planned sale of government shares in Bank Central Asia (BCA), the country's largest retail bank, would help lift investor confidence.

Megawati and her entourage arrived in Tokyo Wednesday for a five-day visit.

Investors confidence had plunged following the 1997 economic crisis and the ensuing political and security problems that still persist until now.

Since assuming power late in July, Megawati has promised to restore investor confidence. She has formed a credible cabinet team welcomed by both the financial market and foreign creditors.

Takeyoshi Watanabe, president of the Jakarta Japan Club Foundation, the 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 problems of power shortages especially in Jakarta, West Java and Banten, where most of Japanese enterprises are operating, were also raised during the dialog with the President.

Meanwhile, Megawati thanked the support of the Japanese government and private sector in helping Indonesia out of the 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 best by economic problems during the last ten years," the President said in a speech.

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 can not overcome similar threats today and tomorrow".

"The challenge that we are facing is formidable, but our people and country have experienced many difficulties, and we survived each time," she added.

After the meeting, Megawati then received three Japanese ministers, including Finance Minister Masajuro Shiokawa.

In the afternoon, Megawati received the leaders of Japanese giants 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 the 17 new oil and gas fields to be tendered by the government soon.(dja/prb)