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.