Reopening of Bank of China office urged

JAKARTA (JP): The Association of Indonesia-China Economic, Social and Cultural Cooperation called on the government on Friday to allow Bank of China to reopen its branch office in Jakarta.

Chairman of the association Sukamdani S. Gitosardjono said trade relations with China had been hampered by Indonesia's slackness in response to China's request for the reopening of the state-owned bank's branch office.

"We hope President Abdurrahman Wahid will be able to fulfill China's wish," Sukamdani told reporters.

Bank of China's branch office in Jakarta was closed shortly after Indonesia broke diplomatic ties with China in 1967 following the latter's alleged involvement in the coup attempt of the Indonesian Communism Party (PKI).

Indonesia reestablished diplomatic relations in 1990.

Nevertheless, Sukamdani said, a ruling issued by the central bank in 1967 to revoke the operating license of Bank of China remained in force.

He said the Chinese government was serious in its request for the Indonesian government to allow Bank of China to open its branch office in Jakarta.

Sukamdani said the reopening of the state-owned bank's branch office would not only strengthen the political ties of both countries, but also provide economic benefits to Indonesia.

The move would significantly boost trade relations with China as well as encourage the overseas Chinese business community to invest in Indonesia, he said.

"I don't know why the government is delaying the process of reopening the bank's branch office," he said.

According to Sukamdani, the administration of former president Soeharto discouraged people from talking about the issue publicly, despite the reestablishment of diplomatic relations between China and Indonesia.

"It was Soeharto who was to make final decision on the matter but everyone was too afraid to ask him about the issue," he said.

He also criticized the administration of former president B.J. Habibie for lacking initiative over China's request.

Nevertheless, he said, a delegation of the bank visited the country in August last year after receiving positive responses from Habibie's administration.

Following the visit, Bank Indonesia sent a letter to the bank on July 12, 1999, notifying it that it could resume operations in Indonesia.

Sukamdani said he was not aware of progress in the talks between the central bank and Bank of China.

He, however, was optimistic that President Abdurrahman Wahid would resolve the issue during his visit to China early next month.

The association's data say China-Indonesia trade was valued US$2.7 billion in 1998, down from $3.7 billion in 1997. (03)