'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)