RI's investment climate promising

JAKARTA (JP): Indonesia's commercial and investment environment is moving in the right direction, a senior executive of U.S. firm General Electric has said.

Speaking at a recent hearing with the House Committee of the United States Congress, R. Michael Gadbaw, vice president of the International Law and Policy of GE, said the Indonesian economy is a model of the private sector investment driven economy.

"Indonesia is an excellent example of a country where trade -- not aid -- has helped conquer poverty and raise living standards," Gadbaw told Congress' house committee on international relations subcommittee on Asia and the Pacific on Monday.

The transformation of the Indonesian economy had been marked by a steady diversification away from oil production and natural resource extraction to diversified manufacturing capability, he said.

"The leadership vision is grounded in 25 years of success in demonstrating the relationship between sound economic policies and unparalleled economic growth," he said.

Gadbaw, who is also chairman of the U.S.-ASEAN Business Council's and U.S.-Indonesia Business Committee said his company and the U.S. business community were optimistic that Indonesia would continue progressing.

He referred to Indonesia as the "center of ASEAN's future" and "a leader in shaping the ASEAN vision" in his testimony.

The Association of Southeast Asian Nations (ASEAN) groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Meanwhile, the president of GE Southeast Asia, Kenneth Brown, said Indonesia would continue to play a lead role in GE's global and regional strategy.

"It is a very attractive investment environment for GE," Brown said.

GE is a worldwide diversified technology, manufacturing and services company with 12 major businesses.

The company booked US$79.2 billion in revenue and $7l3 billion in net earnings last year.

The company said it had invested over $300 million in Indonesia. (das)