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.