RI needs to welcome Chinese investments
RI needs to welcome Chinese investments
JAKARTA (JP): A local economist has suggested that Indonesia court the investment funds of overseas Chinese, who are becoming the backbone of economic growth in East and Southeast Asia.
Sharing the views of leading global trend analysts, Christianto Wibisono said here last week that in the 21st century the economic locomotive of countries in the region will not be the Japanese but overseas Chinese.
Christianto noted that the combined foreign exchange reserves of the overseas Chinese -- notably those from Hong Kong, Taiwan and Singapore -- currently stand at US$237 billion, or one-third of the combined gross domestic products of 10 Southeast Asian countries.
He noted that the overseas Chinese are influenced only by business opportunities and market forces when moving their funds. However, China tends to exploit ethnic solidarity in attracting overseas Chinese to invest more in their homeland.
"Indonesia has to conduct a counter offensive and compete with countries like Canada and Australia in attracting these overseas Chinese investors," Christianto said.
Canada and Australia will host the fourth and fifth World Chinese Entrepreneurs Convention respectively in 1997 and 1999. The convention, founded by Singapore Senior Minister Lee Kuan Yew, was held for the first time in Singapore in 1991; the second in Hong Kong in 1993 and the third in Bangkok last month.
Indonesia since the beginning has refused to recognize the existence of the convention.
Minister of Home Affairs Yogie S. Memet, when inducting Juwono Sudarsono as chief of the communication forum for the enhancement of national unity, recently renewed the government's call that local Chinese entrepreneurs not attend the convention.
The end-year report by the Indonesian Business Data Center, chaired by Christianto, revealed that 204 of the 300 largest conglomerates in Indonesia were owned and controlled by non- indigenous businessmen. They controlled combined turnovers of Rp 91.27 trillion (US$11.4 billion) and combined assets of Rp 212.83 trillion in 1994.
"Therefore, it is difficult for Indonesians to accept capital invasions from the overseas Chinese, which they fear can widen the existing gaps between indigenous and non-indigenous prosperity," he said.
However, Christianto underlined the important role played by overseas Chinese in Indonesia's economy through their direct investments.
Data at the Investment Coordinating Board show that combined commutative investment approvals from Hong Kong, Taiwan and Singapore in Indonesia totaled $39.5 billion as of last month, or 28 percent of the $141.5 billion in total foreign investment commitments cumulatively approved since 1967.
If Indonesia fails to attract the overseas Chinese, they will run to other countries they consider attractive, Christianto said.
"Why don't we try to attract these overseas Chinese and match them with indigenous entrepreneurs so that the indigenous will not be left further behind by local Chinese businesses," he suggested. (rid)