RI's recovery 'depends on international confidence'

RI's recovery 'depends on international confidence'

JAKARTA (JP): The recovery of Indonesia's crisis-hit economy
will depend on the return of international confidence in the
country, businessmen said yesterday.

"The most important thing at present is how to win back
foreign investors' confidence," said James T. Riady, the vice
chairman of the Lippo Group.

He said that the current economic crisis had sent many
businesses bust and had also created a worrying level of
unemployment.

James said foreign investors could help in recapitalizing the
country's cash-strapped business sector which in turn would
revive the overall economy.

He said that without the help of foreign investors it would be
difficult to prevent a further slide in the country's battered
economy.

He was speaking following a ceremony on the introduction of
Indonesian special business ambassadors in which James was
appointed special envoy to China, Taiwan, Hong Kong, Australia
and New Zealand.

"Our duty is to remind them (foreign investors) that a 1 to 2
year setback in the long term should not be much of a problem,"
said James, who was also recently appointed a member of the
People's Consultative Assembly by President B.J. Habibie.

He explained that since Indonesia has the world's fourth
largest population and abundant natural resources, it had the
potential to be the first to recover from the crisis, which has
hit most of Asia.

"The natural resources have universal value, and it surpasses
the value of the rupiah because it is valued in dollars," he
said.

He acknowledged that over the next two years the situation
might worsen, but large economies like China, Taiwan, Hong Kong
and Australia should think 50 years ahead and not just short
term, like one or two years.

"Indonesia is a large country with an important role in the
Asian region, and any company which intends to be active in Asia
should make Indonesia its destination," he said.

He explained that Indonesia was embarking on a process to
transform its economy into a global and market-oriented economy.

He expected all parties to realize that globalization and
market-oriented transformation was inevitable.

He added that despite the sweeping economic reform programs
sponsored by the IMF, there was still room for the government to
continue deregulating.

He pointed out that businesspeople and tourists from China
found it difficult to enter Indonesia because it took three to
four months for them to be issued an entry visa.

"If we could make this time shorter, at least 200,000 tourists
from China could be expected to come to this country," he said,
pointing out that some 300,000 Chinese travelers visited Malaysia
annually.

Indonesian Chamber of Commerce and Industry chairman Aburizal
Bakrie, who introduced the envoys to the media yesterday, said
the envoys had a tough mission: to persuade foreign investors to
return to the country.

Many foreign investors and local businesspeople of Chinese
origin left Indonesia following the May bloody unrest which also
led to the resignation of long-serving president Soeharto.

"Indonesia's economy is in a very difficult situation and can
only be recovered with the return of international confidence,"
said Aburizal, who is also a member of the Indonesian Economic
and Finance Resilience Council (DPKEKU), the country's crisis
center.

During difficult times people tend to look at only what is
visible, making investment decisions based on a short-term
vision, he said.

Aburizal said the first priority to win back foreign
investors' confidence was to create public order to make sure it
was safe doing business in Indonesia.

The government must also quickly address the country's social
problems resulting from the economic crisis, he said.

He added that solving the banking sector's and private
sector's overseas debt problems were also key to persuading
foreign investors to return to Indonesia with their money.

The six other businessmen appointed as special envoys are
Hashim Djojohadikusumo to cover Europe, Suryo Sulisto for
America, M. Sinivasan for Southern Asia and Africa, Iman Taufik
for Southeast Asia, Kusumo for Japan and South Korea, and Mukrim
Hakim for the Middle East.

The special envoys, who will be formally inaugurated by the
President on July 7, will be given diplomatic passports for
themselves and their wives.

Their travel and lobbying expenses, however, will not be
covered by the state but by individual businesspeople.

"This is our contribution to help this country," Aburizal
said, pointing out that the appointment of the businessmen was
important to regain the confidence of foreign investors, who are
businessmen too.

"They speak the same language," he said. (rei)