RI investment still uncertain

RI investment still uncertain

SINGAPORE (AP): Investors should wait until after Indonesia's presidential election to put any money into the troubled country, an economist said Thursday.

Arjuna Mahendran, senior economist at Socgen-Crosby Securities, told a gathering of executives that the outcome of the November election will determine whether Indonesia is headed for stability or more turmoil.

He predicted that more aid would flow into the country if opposition leader Megawati Sukarnoputri, whose party won the most seats in the recent parliamentary elections, is elected president.

In 1997, Singapore invested S$5.7 billion (US$3.5 billion) in Indonesia, making its southern neighbor the second largest recipient of Singapore's outward investment.

Political threats in Indonesia abound, with growing anti- Western sentiment in Jakarta and the provinces of Aceh and Ambon clamoring for more independence, Mahendran said.