Tue, 04 Dec 2001

On economic recovery

Recent studies have indicated that foreign aid to under-developed countries does not contribute to economic improvement, rather it can hinder progress, whereas foreign investment has greatly helped in pulling many third world countries from poverty to progress. It is my desire to see Indonesia recover from economic disaster and progress so that poverty is significantly reduced and people are free to live comfortable lives.

Indonesia seems to be desperate to receive aid from the United Nations whilst foreign investment in this country is dwindling to alarming levels. The corruption of many government departments is perceived to be a major hindrance to trade and investment. For Indonesia's businesses, the fiscal (exit) tax is a hindrance to travel and trade.

The reform movement should not just be a change in government! Reform should be a total change in government life and services. If the ports were efficient and free of bureaucracy then we would experience more interest in foreign and local business. Presently countries like Thailand and China are much more attractive in terms of business as they are perceived to be more conducive to trade.

As an individual who isn't involved in business it cost my family more than Rp 3 million to collect from the port, personal clothing, books and wedding photos from abroad. It was very cheap to ship my belongings -- only US$100. Originally the people at the port demanded $3000. It took my wife more than three months of negotiations. This made me realize that if an individual faces massive obstacles, imagine the problems of business.

MARK OGILVIE

Jakarta