Minister says riots will not stifle growth

Minister says riots will not stifle growth

SINGAPORE (AFP): An Indonesian minister told leading U.S. and
Singaporean business leaders yesterday that Indonesian economic
reforms and growth would not be stifled by recent riots in
Jakarta.

Coordinating minister for production and distribution Hartarto
reportedly told the closed-door meeting of the U.S.-Singapore
Business Council that Indonesia's economy would expand in 1996 at
around 7 percent as targeted.

"Hartarto highlighted the fact that these disturbances have so
far been limited only to Jakarta. Of course, they should not, in
his view, disturb to any significant extent the economic progress
of Indonesia," Singapore's deputy premier Tony Tan told a news
conference.

Tan, who is council chairman, said Hartarto was confident
Indonesia's economic growth target for this year would be met and
that further liberalization of the economy should continue.

Over the last five years, Indonesia's annual gross domestic
product (GDP) growth had exceeded 7 percent.

The Indonesian economy had lured more than US$100 billion
worth of accumulated pledged foreign investment, of which $40
billion was registered in 1995 alone, according to published
reports.

Two weeks ago, Indonesia's financial markets were jolted and
investor confidence shaken by riots that swept through Jakarta
after a military-backed raid on the headquarters of the
opposition Indonesian Democracy Party (PDI), occupied until then
by supporters of ousted PDI leader Megawati Soekarnoputri.

Three people died in the violence and at least 20 people were
injured in the worst civil unrest seen in Jakarta for more than
20 years.

A poll commissioned by Asia Business News (ABN) and the Far
Eastern Economic Review showed earlier this week that 43.3
percent of 300 top executives interviewed from 10 economies in
Asia were reconsidering investing in Indonesia.

The high-powered U.S.-Singapore Business council, which ended
its three-day meeting yesterday, had invited Hartarto to brief
the business leaders on Indonesia's economic strategies and
opportunities for U.S.-ASEAN collaboration.

Speaking on behalf of the U.S. members of the council, Lucio
Noto, chairman of Mobil Corp., told reporters that minister
Hartarto was "frank and open" in his comments.

"I think the Indonesian government is very sensitive to what
is going on," he said.

"We (Mobil) has been there for 30 years, we have been through
some very tough times and we wish them well in their efforts to
continue to bring the country forward and try to get the maximum
support of its people to what is going on," Noto said.

Singapore Airlines Ltd. chief executive officer Cheong Choong
Kong said the U.S. and Singaporean business leaders accepted
Hartarto's explanation "that the events notwithstanding, they
will continue to make the progress that is projected."

Malaysia's international trade and industry minister Rafidah
Aziz also spoke behind closed doors on business opportunities
between the United States and ASEAN beyond 2000, officials said.

Apart from Indonesia, Malaysia and Singapore, ASEAN comprises
Brunei, the Philippines, Thailand and Vietnam.

Among the objectives of the U.S.-Singapore Business Council is
to promote and facilitate cooperation between private sectors in
third country markets.

Singapore officials said the city state, with its extensive
network of business and government linkages in Asia, could
facilitate investments by U.S. companies in the region.