'President' Megawati pick of investors
'President' Megawati pick of investors
JAKARTA (JP): Positive sentiments of foreign investors will
surge if Megawati Soekarnoputri, the chairwoman of the Indonesian
Democratic Party of Struggle (PDI Perjuangan), is elected
president, a political risk consultant said on Wednesday.
"Megawati has support from Washington, which will smoothen
bilateral and multilateral aid from the International Monetary
Fund (IMF), World Bank and other sources, to create a positive
environment for investment," James Van Zorge, head of the Van
Zorge, Heffernan & Associates consulting firm, said.
Megawati is the presidential candidate of PDI Perjuangan which
won 153 seats in the House of Representatives in the June general
election. But it is not enough to win the presideantial election.
The ruling Golkar Party, which came second with 120 seats, has
nominated incumbent President B.J. Habibie as its presidential
candidate. Analysts feared that the party will use "money
politics" to secure the presidential post.
The alliance of six Muslim-oriented parties, claiming to have
about 150 seats in the House, has tendered Abdurrahman "Gus Dur"
Wahid as their choice, adding more uncertainty in the
presidential race.
The 700-member People's Consultative Assembly (MPR),
comprising of 500 House members, and 200 regional and intrerest
group representatives, will convene in November to elect the
President.
"The Bank Bali case and East Timor issue have damaged
Habibie's credibility with Washington," Van Zorge said.
He was speaking after a media conference to announce the
company's plan to hold a two-day conference starting on Oct. 21
in Bali.
"Megawati would have to find the right officials who could run
the economy," he said, adding that she has to put together a
capable and credible Cabinet to attract more foreign investors.
"Businesspeople foresee the presidential election as a
milestone in Indonesia's democratic reform," he said, adding that
they could deal with corruption or lack of transparency, but not
with uncertainties.
"Businesspeople want the certainty of knowing who the
president is and what the government's agenda and policies are
going to be for the next five years," he added.
The Investment Coordinating Board reported recently that
licensed foreign investment in the first eight months of 1999
dropped 50 percent to US$5.88 billion from $11.7 billion in the
same period last year.
"Foreign investment inflow has virtually stopped due to the
political uncertainty," he said.
But he added that mining sectors such as coal, gold, oil and
gas along with manufacturing would remain attractive to
investors, but only after the uncertainty was removed.
"With a stable government and reasonable policies, Indonesia's
growth would pick up, not up to the precrisis level but to a more
sustainable level," he added.
The conference, titled "Indonesia Next", has invited 40
speakers from different backgrounds to discuss the problems faced
by Indonesia and to find alternative solutions to upcoming
problems.
Confirmed speakers include Paul Wolfowitz, former U.S.
ambassador to Indonesia; Abdurrahman Wahid, chairman of the
largest Islamic group Nahdatul Ulama; Marzuki Darusman, a deputy
chairman of the Golkar Party; Roby Djohan, president of state
Bank Mandiri; Mari'e Muhammad, former minister of finance. (02)