Taiwanese businessmen worried about RI security

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.