Taiwanese businessmen worried about RI security

By Sylvia Gratia M. Nirang

TAIPEI (JP): Worried Taiwanese businessmen called on the Indonesian government on Friday to give them special protection in doing business in the crisis-hit country.

"Our main fear is about our personal and investment security in Indonesia," one of the Taiwanese businessmen said at a seminar on Indonesian trade and investment.

The businessmen said they preferred investing in other countries if the Indonesian government could not guarantee them safety.

Another participant at the seminar held by the Indonesian Trade and Investment Mission to Taiwan and the China External Trade Development Council doubted President B.J. Habibie shared their concerns.

The investor, who asked for anonymity, said Habibie should at least provide legal grounds to protect their businesses.

Indonesians of Chinese descent are often the victims of social and ethnic violence in the country. They account for only 4 percent of the country's population but control over 60 percent of the country's economy.

Rising social tension and attacks on ethnic Chinese during the unrest which has hit Indonesia since May last year has caused fear among ethnic Chinese from other countries.

Hundreds of ethnic Chinese, including Taiwanese, fled Indonesia during last year's May riots, during which hundreds of properties, including stores and office buildings, were burned and looted.

The Taiwanese businessmen said Indonesia should issue a regulation to protect ethnic Chinese investors.

The chief of the Indonesian Trade and Investment Mission, Rahardi Ramelan, said Indonesia had signed an investment protection agreement with 27 countries, including Taiwan, in order to encourage foreign investors to enter Indonesia.

Under the agreement, the Indonesian government guarantees investments made by investors from these 27 countries from any damage and loss caused by riots, revolution and nationalization, he said.

"With this agreement we are protecting investments made by Taiwanese investors," he said.

Rahardi said that no matter who leads Indonesia after the upcoming presidential election, the government would uphold the law.

"Indonesia is undergoing a process of fully enforcing law and order. All kinds of political and economic matters are covered by laws. So you don't need to be afraid because we will ensure that the laws are implemented fairly," he said.

Meanwhile, Taiwan's Deputy Director General of Industry and Development at the Ministry of Economic Affairs, Shih-Chao Cho, urged businesspeople from his country to take a lead in investing in Indonesia to help the latter recover from the crisis.

"We see that the economic crisis has made Indonesia a very attractive place for investment. There are so many opportunities in the country," he said.

He said that because of recent reforms in Indonesia, opportunities had opened up for Taiwanese firms to invest or form partnerships or joint ventures in a number of areas.

"But Taiwanese businesses needs to realize that these opportunities won't be there forever. There are other investors equally interested in working with Indonesia, and we need to seize the opportunity before the window of opportunity closes on our fingers," he told more than 150 businessmen from both countries.

Cho expressed optimism that new Taiwanese businesses would eventually come to Indonesia once the current political uncertainties were resolved.

He said the Taiwanese government and businesses had strong faith in Indonesia and were confident in the country's long-term outlook.

He said Taiwanese investment in Indonesia had slowed during the economic crisis, but he believed it would increase following the country's economic recovery.

Cho added that Indonesia's banking industry had become one of the attractions for foreign investors following the government's move to lift limitations on foreign ownership.

In addition, comprehensive rationalization of the banking sector would leave only sound banks in operation.

"Many companies have to restructure their debt. They need new investment, so let's take the opportunity," he said.