The essence of Megawati's U.U. visit

The essence of Megawati's U.U. visit

President Megawati Soekarnoputri's visit to the United States
is of great importance to present the new posture of Indonesia's
government to American leaders and the business community, says
Tony Agus Ardie, who is also leading a business delegation to the
U.S. He spoke to The Jakarta Post's senior editor Vincent Lingga,
reflecting confidence in the American economic strength despite
Tuesday's tragedy.

Question: How do you see the visit at this point in time?

Answer: It is undoubtedly quite an opportune time for both
leaders to establish a good understanding and exchange views
about ways of further strengthening bilateral ties. For Megawati
herself, it is a great opportunity to learn first-hand about the
U.S. foreign policy stance in the aftermath of the Sept. 11
terrorist attacks that President George W. Bush sees as an act of
war against the U.S.

Many see the U.S. visit mostly as an economic mission. What is
its relevance now that the American economy is in deep recession?

That is quite true, in view of the composition of Megawati's
entourage and her itinerary. The economy should indeed be the
primary objective, given the depth of our bilateral economic ties
and Indonesia's hunger for foreign capital. The U.S. takes more
than 25 percent of our exports, it's one of the largest foreign
investors in Indonesia and commands a great influence both in the
International Monetary Fund and the World Bank.

I don't think the recent terrorist attacks will have any
impact on American economic fundamentals. It will remain the
largest source of technology and the greatest influence in the
global financial market. What we see now are temporary panic
reactions. Certainly the terrorist attacks will not help business
confidence, especially now, when the U.S. economy is slumping
after more than a decade of robust growth. But I am convinced
this economic powerhouse will soon manage well.

What is the main objective of the business delegation you are
leading in parallel with Megawati's visit?

More than 25 Indonesian businesspeople will visit the U.S.
Most of them will take part in business meetings in Washington
and New York where President Megawati and several economics
ministers will also attend. Several delegates will also go to
Houston to attend an Indonesian energy conference that is slated
to be opened by Megawati herself.

However, the delegation of the Indonesian Chamber of Commerce
and Industry (Kadin) that I am heading, as chairman of Kadin's
U.S. Committee, will concentrate on the development of relations
between the small- and medium-scale enterprises (SMEs) of both
countries through a series of forums in Washington and New York.
Don't forget that despite its reputation as the largest
capitalist country, SMEs play a very important role in the U.S.
economy.

Its small business development scheme is one of the best-
managed under the Small Business Act. Indonesia has now been
increasingly aware of the vital importance of SMEs after the
collapse of most conglomerates in the 1997 crisis and could learn
a great deal from the U.S. Besides meeting with businesspeople,
we will also hold talks with Senator Christopher S. Bond,
Chairman of the Senate Committee on Small- and Medium-scale
Businesses.

What do you expect from the business forums in the U.S.

Many tend to see business missions overseas at this time of
crisis as a waste of money, especially now, when investors have
practically deleted Indonesia from their business plan maps. On
the contrary, such a mission is even more important now to
establish personal contacts, and for networking.

As most foreign investors have stopped visiting Indonesia,
they now rely mainly on mass media stories or reports by
analysts. The problem is that after the crisis analysts now tend
to be inordinately pessimistic about our country, often
predicting a doomsday scenario.

But the business meetings that will also present economics
ministers as resource persons will be a greatly effective forum
for providing the right perspective on Indonesia's problems and
future outlook.

The meetings will also be a great opportunity for our
ministers and senior officials to straighten out many
controversial issues regarding the imbroglios that have of late
entangled a number of foreign investors in Indonesia.

Both the officials and Indonesian business delegates could
enlighten their American counterparts on the right perspective of
the problems Indonesia is now encountering, notably in the
transition from centralized government to regional autonomy.

They could honestly and proportionally explain what the
government is doing to handle the temporary euphoric reactions in
many provinces, what the future outlook really is and what the
government is doing and will continue to pursue regarding law
enforcement and other matters of the greatest concern to
investors. (Vincent Lingga)