Prerequisites for investment

Prerequisites for investment

U.S. Finance Secretary Lawrence Summers has suggested that the
(Indonesian) government give priority to the establishment of
this country's macroeconomic stability. This is an expansive
concept because it covers not only matters of a purely economic
nature, but it also seeks to help prevent seeds of unrest from
developing through economic measures.

Foreign investment is highly needed because it is expected to
help our economic recovery. The government, however, has doubts
about the origins of the capital involved. The funds, after all,
could be part of the money owned by conglomerates that flowed out
of the country some time ago. The point is, it would be highly
ironical if those funds should be used to buy out companies sold
by the Indonesian Bank Restructuring Agency (IBRA), given their
owners' still outstanding bad debts to Indonesian private and
state banks.

Aside from such considerations, however, good facilities,
security and a conducive environment for businesses to operate in
are prerequisites for attracting foreign investment. These are
the conditions that must be established. Therefore, the
determination of the authorities to act firmly in this respect
are appropriate.

-- Bisnis Indonesia, Jakarta