Taiwan replies

This is in response to Jusuf Wanandi's article Indonesia still respects the one China policy which appeared in The Jakarta Post on Dec. 23, 2002.

President Chen's planned visit to Bali and Yogyakarta was a response to your government's call for international help after the terrorist attack in Bali, and was aimed at helping Indonesia revitalize her battered tourist industry and dwindling foreign direct investment. It was simply a demonstration of President Chen's goodwill and care for Indonesia. Being in his personal capacity, the trip had nothing to do with politics and was not a challenge to Indonesia's "one China" policy.

Of the total US$17 billion of investment by Taiwan in Indonesia, the major investors come from Taiwan's small and medium-sized enterprises. They have no connection with any parties either in Taiwan or Indonesia. Wanandi's claim that KMT companies make up the bulk of Taiwan's $17 billion in investments is simply not true. There is no single KMT investment in Indonesia.

Indonesia and China are competing with each other for foreign direct investment. Taiwan's total investments in Indonesia reaches $17 billion. China puts a special emphasis on trade, and its direct investment in Indonesia lags far behind.

Indonesian export items are similar to those from China. Taiwan's export items are mainly high-tech and machinery products, which do not compete with Indonesian goods in international markets. Also, with Taiwanese machinery Indonesia can enhance its competitiveness.

Each year, about 300,000 Taiwan tourists visit Indonesia. And Taiwan tourists' purchasing power is famous the world over, while tourists from China are only allowed to possess $500 for traveling to Indonesia.

We firmly believe that the Indonesian government will be wise enough to make the best decision and her sovereignty won't be compromised by foreign pressure.

DEREK HSU, Director, Information Division, Taipei Economic and Trade Office, Jakarta