Megawati told to regain lost market confidence

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)