Susilo tells investors his govt will deal with instability

Zakki P. Hakim, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono ensured some 700 foreign investors here that the government would overcome the economic instability of the past five weeks.

"I have every confidence that we will overcome this present quagmire," he said on Tuesday at the Foreign Investors' Forum, held by the International Business Chamber (IBC) with the international investor community and the Indonesian Chamber of Commerce and Industry (Kadin).

Susilo said that due to the weight of the oil price, which severely impacted the government's fuel subsidy expenditures, the government was working closely with Bank Indonesia to ensure coordination in all economic and monetary policies.

He added that the government would soon announce its "fundamental energy policy", which would be interconnected with monetary policies.

The energy policy would include measures for price adjustments as a result of subsidy reductions, but would maintain protection for the poor; energy conservation and diversification, increased production and refinery construction, as well as a better law enforcement component to fight the smuggling of gasoline and diesel out of the country.

In his keynote speech, Susilo reiterated his commitment in dealing with the red tape, conflicting regulations, taxation issues, the relatively high cost of doing business here, rampant corruption, legal certainty, transparency and contract sanctity; as well as commitments on intellectual property rights, rigid labor regulations, the ailing infrastructure and inefficient customs and ports.

"Did I miss anything? If I did, please SMS me at 9949," he said to the amusement of the audience.

He went on to promise that the government would soon submit to the House of Representatives, a new draft of the investment law, which he said, if enacted, would make the country's economy much more "business friendly".

The government is also trying to review the severance payment regulations, improve regulations for contract workers and undertake more flexible outsourcing regulations, he said.

Moreover, he promised to reactivate the National Team for the Development of Exports, which he would personally lead.

Through the team, he would also hold a round table "Informal President's Investors Forum" every four months with business leaders.

Susilo expects to have the initial forum in October after his visits to New York and the Middle East.

IBC chairman Peter Fanning said the event was for foreign investors in the country "to show their presence physically to the President and for the President to directly say to them whatever he wanted to say."

"Foreign investors already active in the country are the best ambassadors for the government. The President's speech will be of great assistance to us in promoting Indonesia in our home countries," said Fanning, also the chairman of the event.

The event involved business associations from the United States, Australia, Great Britain, Canada, France, Germany, Italy, South Korea, Malaysia, the Netherlands, the Philippines, Singapore, Switzerland, Taiwan, Thailand, Japan, China and the European Union.