Sultan disappointed but understands China issue

Sultan disappointed but understands China issue

Tarko Sudiarno, The Jakarta Post, Yogyakarta

Yogyakarta Sultan Hamengku Buwono X expressed his disappointment
with the recent cancellation of a planned visit by Taiwanese
President Chen Shu-bian to the province, but said he could
understand the central government's unilateral action due to its
adherence to a One-China policy.

"I myself was not informed of the government's unilateral
cancellation as it is the business of the central government. I
am a realistic man. I don't expect the delegation to come here,"
the Sultan said.

The Taiwanese president was scheduled to meet the Sultan on
Dec. 17, but Jakarta canceled the visit at the last minute,
presumably under pressure from China about recognizing Taiwan.
As a result, many Taiwanese leaders have become enraged by the
diplomatic slap in the face, with many suggesting a total cut in
financial ties with Indonesia. It is the fifth largest investor
in the country.

Businesspersons in Yogyakarta had high hopes that the
presidential visit would boost trade and tourism, which have been
deteriorating since the Bali bombings on Oct. 12.

The Sultan emphasized that the province was in dire need of
investors for it to recover from the economic hardships in the
aftermath of Oct. 12, when almost 200 people were killed, mostly
tourists.

The handicrafts industry, mostly serving tourists, has
suffered greatly and left tens of thousands jobless and many
businesses bankrupt. In addition, a great many of the foreign
tourists to Yogyakarta begin their trips in Bali, but that too
has all but dried up with the precipitous decrease of tourist
arrivals.

Should the province fail to get investors, the Sultan said,
the economy would slump further.

"It's going to be difficult now. It looks impossible now to
invite them (Taiwanese investors) to invest in Indonesia. We have
to find new investors from other countries," the Sultan added.

Data shows that the losses in the tourism sector between
October and December this year will reach Rp 14.7 billion. If
similar conditions persist into 2003, the figure could quickly
rise to more than Rp 70 billion (US$7 million).

According to the Sultan, the number of workers laid off this
year reached 20,000 people in the province. The number is
expected to rise as most textile and leather companies are
hurting.

Like Bali, the main backbone of Yogyakarta's economy is
tourism and small-scale industries that support it. When this
sector became affected by the terror bombings in Bali, combined
with the prolonged economic crisis, it seriously affected
Yogyakarta's economy.

In an attempt to rescue the dying economy, the business
community in Yogyakarta created an action plan.

"For that purpose, we created a comprehensive program focusing
on tourism, trade and investment," the Sultan said.

Among the policies to be implemented will be a direct flight
from Singapore to Yogyakarta to allow foreign investors easier
access to the province.

It is hoped that the direct flight will help economic
development.

The Sultan was pleased with the arrival of new investors in
the province to develop cigarette and cashew nut businesses.

Separately, Yogyakarta's Provincial Secretary Bambang S.P.
disclosed that the Sultan will pitch his economic recovery
campaign abroad.

"The Sultan will go to Singapore and Malaysia this week for an
interview with local media. We have to portray the image of
Yogyakarta as a safe place for tourists and investors," he said.

Bambang said that Yogyakarta's administration would also
insist that the government hand over a portion of the Bali
recovery money for its own programs.

"We demand they give us (legislators) 10 percent of the Rp 2
trillion (about US$220 million) allocated by the central
government for the Bali recovery scheme. If our proposal is
approved, it will be used to continue our promotion," Bambang
claimed.