RI needs business council to do some positive PR
By Endy M. Bayuni
HONOLULU, Hawaii (JP): The Indonesian business community must do some public relations activities of its own to tell the world of the real situation in the country, the secretary general of the Pacific Basin Economic Council (PBEC) says.
Robert Lees, who leads the Honolulu-based organization of business leaders from 20 countries, said Indonesia has had more than its share of bad publicity from the international media.
Lees proposed the establishment of an organization similar to the Singapore Economic Development Board (EDB) or Hong Kong Trade Development Council (TDC), both of which had been highly effective in presenting a positive image of their respective countries to help woo foreign investors.
"It really disturbs me the way the international media has treated Indonesia," he told The Jakarta Post from his downtown Honolulu office overlooking the Aloha tower.
"You have had some bad PR (public relations)," he said, citing as an example the news report about ExxonMobil's decision to shut down its operation in a major gas field in Aceh.
"This could be turned around," he said, adding that the Indonesian private business sector could help on this front.
The PBEC chief visited Jakarta and he met with Indonesian government officials and business leaders last month.
"The idea for a council came up during a business lunch," he said.
Most foreign investors have stayed away from Indonesia over the last three years because of the seemingly endless crisis.
Indonesia's gross domestic product nevertheless grew at an impressive 5 percent in 2000, compared to zero percent in 1999 and a contraction of 13 percent in 1998. Exports also reached an annual record of $60 billion in 2000 on the back of a strong U.S. economy and high world oil prices.
Many economic analysts, however, say the rapid growth is unsustainable and predict a slowdown this year, or even another recession if the political situation continues to deteriorate.
Lees said the international media had focused too much on violence and political demonstrations in Indonesia.
"Life goes on in Indonesia, and business is not all that bad," he said.
The PBEC, which held its annual international general meeting in Tokyo from April 6 through April 10, boasts more than 1,100 corporate members in 20 countries. Founded in 1967 by private business sector leaders, the council has been lobbying for the removal of trade barriers across the Asia Pacific region.
The PBEC was instrumental in the establishment of the Asia Pacific Economic Cooperation (APEC) forum in 1993 and is involved in the preparations for the annual APEC summit, which this year will be held in the Chinese city of Shanghai in October.
The PBEC has also served as a forum for members to exchange ideas and share information, and it was from here that Lees came up with the idea for Indonesia to set up a council similar to Singapore's EDB or Hong Kong's TDC.
He proposed that the local Indonesian committee of the PBEC take the initiative.
The Indonesian committee is led by Haroen Al Rasjid, the chief commissioner of PT Caltex Pacific Indonesia.
Its 20 members include CEOs from giant local corporations such as PT Astra International, the Sahid Group and Texmaco, as well as major foreign companies operating in the country like Arthur Andersen, PT Freeport Indonesia and Jardine Matheson.
Lees discounted the role of the Indonesian Chamber of Commerce and Industry (Kadin), which he said was more suited to the promotion of small and medium enterprises and other domestic issues.
"For the international piece, you need an Indonesian development council or board, run by the private sector with funding from both the private sector and the government," he said.
"Its job will be to give a new face to Indonesia," he said, adding that initially the council could set up small offices in Singapore, Hong Kong, Tokyo, and Washington DC.
Besides providing information and statistics on Indonesia, the council could arrange for Indonesian business ambassadors to appear before the international media such as CNBC and CNN with consistent messages to help rebuild international confidence in Indonesia.
The PBEC would be only too happy to help set up such a council, Lees said, adding that he also believed that Singapore's EDB and Hong Kong's TDC would lend their hands because they too had a stake in the economic stability of Indonesia and the region.
Lees said that with a little more effort from the business community, many investors would return to Indonesia, which remains highly attractive given the sheer size of the market, the abundant natural resources and the pool of skilled workers.
Asked about the deteriorating political situation in Indonesia and the impact it has had on the economy, Lees said: "I take it for granted that Indonesia will resolve them. You must.
"This is like a chicken-and-egg situation. The political situation has to stabilize, but the economy must also recover at the same time. For that, you need a strong business community that is more outspoken."