Reopening of Bank of China office urged

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)