Political discord 'hampers business'

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)