Political discord 'hampers business'
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) urged politicians and the government on Tuesday to enhance political stability by not exaggerating political differences.
Kadin chairman Aburizal Bakrie said the highest concern of the business community at present was that of political stability.
"Optimism about the reform movement has deteriorated due to increasing political differences between political leaders and the government itself," Aburizal said at the opening of Kadin's 10th national meeting at Vice President Megawati Soekarnoputri's office.
Heads of provincial Kadin offices, industrial associations and foundations are attending the two-day meeting at the Aryaduta Hotel here.
"Our political elite have to refrain from acts or statements that could disrupt the market," Aburizal later told reporters.
According to Aburizal, the domestic investment climate would not improve if government policies and statements created political uncertainties.
He said the recent Cabinet reshuffle, which saw the replacement of two economics ministers, was an example of how volatile the political situation still was.
Aburizal added that much of the capital which fled the country during the political crisis in 1998 had yet to return.
"Money doesn't have nationality," he said, referring to Indonesian financial assets that are now parked at overseas banks.
Aburizal added the business community was also concerned about trends of intimidation by individuals with strong political affiliations.
Last week, a group of civilian Banser guards from the country's largest Islamic organization, Nahdlatul Ulama (NU), occupied the office of Jawa Pos daily in Surabaya, following a story by the largest East Java newspaper about alleged corruption involving NU leaders.
NU was chaired by Abdurrahman Wahid before he was elected the fourth Indonesian president last October.
Kadin, he said, also noted a trend of increasing local resentment toward foreign investors.
This resentment might either be engineered or caused by misunderstanding of the autonomy laws, which the government planned to enforce next year, he said.
Aburizal further urged the government to ensure investors' security and the military to act firmly on protesters that burn and loot stores.
He said that investors were worried about protesters occupying production facilities, thus preventing companies from conducting their business.
According to the business leader, the "reform euphoria" has encouraged people to assert their rights and aspirations, sometimes in radical and violent ways.
"The military should not hesitate to take strong action," he said, but added that they should also not overact in facing protesters.
Minister of Industry and Trade Luhut Pandjaitan concurred that security factor here was still a "gray area" to many investors.
"The military seems reluctant to act firmly to maintain investors' security here, while the police are not capable of handling security problems alone," he said during a dialog session with Kadin members.
He cited the army's reluctance to stop the recent occupation by protesters of a power plant on Bintan island, near Singapore, due to fears of violating human rights.
"In Singapore they told me that occupying a power plant is a declaration of war," Luhut, a retired two-star general, who is still Indonesia's ambassador to Singapore, said.
Luhut said on Monday he had met with the TNI (Indonesian Military) commander to discuss measures on how to ensure security to boost's the country's exports.
According to him, eight of the Indonesian major business associations, including the Indonesian Textile Association (API) and the Association of Indonesian Wood Panel Producers (Apkindo), had complained to him about domestic security situation.
He said he had urged TNI and the police to work together with the people to provide security for investors.
Luhut, however, said that maintaining security was not the sole responsibility of the military.
"It is up to us if we want to maintain stability here," he said. (bkm/prb)