Fri, 09 Feb 2001

Persuading overseas investors

Further to Mr. Magain's latest comments on the issue of mixed marriages, I admit to finding myself in almost complete agreement with him on many points. His more pragmatic ideas regarding the financial value placed upon foreigners are clearly valid and need addressing.

It seems a generally held perception that foreigners are considered an "easy target" here by many. This view would indeed appear to be confirmed by recent institutional initiatives specially targeting foreigners. My question would therefore be: How can we help the decisionmakers to withdraw their support for racially discriminatory practices?

Sadly, for reasons that I highlighted in my previous letter, I am sure that it is extremely unlikely that those who excuse and those who practice this dubious treatment of foreigners in any way consider their beliefs and actions morally questionable. They would, I am sure, be extremely affronted at such a suggestion. Another basic characteristic of most humans is the ability to perform intricate mental gymnastics in order to rationalize indefensible behavior. I believe we cannot, therefore, expect to appeal to them on humanitarian grounds alone with much likelihood of succeeding.

However, if money is the overriding factor, as Mr. Magain suggests, there is indeed some hope. Could not policymakers perhaps be persuaded that the best way to reap financial profits from foreigners would be to create better conditions for them to come to Indonesia to invest their time, skills and resources? Indonesia's stalled economy in unquestionably in desperate traits. Its recovery is also, rightly or wrongly, dependent on an upturn in overseas investor confidence -- something that has yet to show any signs of materializing.

Evidence of evenhandedness from policymakers, in the form of a dissolution of discriminatory practices toward foreigners, might go some way toward persuading overseas investors that they would be treated more equitably on their return. It would also give Indonesia's humanitarian image abroad a much-needed boost. The loss of income from current discriminatory practices would, I feel, be more than compensated for in the medium to long term by improved investor confidence and better economic conditions. Indonesia could perhaps claim some moral high ground and still benefit financially. How's that for pragmatism?

ROSS GULLIVER

Jakarta