Top firms to maintain business plans despite security risk

Evi Mariani, The Jakarta Post, Jakarta

Some of the country's top businesspeople said on Thursday that they would not cancel their business plans this year despite growing concerns over domestic security, in an apparent vote of confidence for the government's ability to maintain security and order.

"We'll not revise our sales target, and we'll carry out our business plans as usual," president of the country's second largest automaker PT Indomobil Sukses International Gunadi Sindhuwinata told reporters.

The company is aiming to sell about 70,400 vehicles this year. It also plans to expand its plant in Tuban, East Java.

Gunadi said that the expansion plan was still on track.

PT Astra International, a publicly listed corporation, would also conduct business as usual, the company's corporate secretary Aminuddin said.

He applauded the government's swift response to the Marriott bomb blast, and was confident that the authorities would be able to maintain security and order in the coming year.

The two were speaking to reporters following a two-hour closed-door meeting between local business players, Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono and the National Police chief Da'i Bachtiar.

The top security officials briefed the businessmen about the current security conditions here in the wake of the terrorist bombing at the JW Marriott Hotel in Jakarta, as well as preparations for next year's national elections.

After the Marriott bomb, there have been concerns that the business sector would put on hold their investment plans amid fears of further terrorist attacks in the country in the near future. Such a condition would pose a serious threat to the economy, which has been struggling to recover from the devastating impact of the late 1990s economic crisis.

But following the bomb attack, all government officials seemed to be united in trying to calm down nervous investors. The police, for instance moved quickly to try to find those responsible for the bombing, and boost security measures in public places. The Minister of Finance is also planning a set of measures to help revive investment.

Indeed, the rupiah and the Jakarta stock market recovered quickly from their steep downturns following the attack.

"As a businessman, I'm more confident now. In addition to what I've read in the newspapers, the meeting also made me better informed and clearer about what measures have been taken by the government," Aminuddin said.

Meanwhile, president of the Surabaya Stock Exchange Hindarmojo Hinuri said that Susilo gave three scenarios for next year's security conditions: First, an optimistic scenario with a smooth general election process. Second, a moderate scenario with some mild disruptions during the election period. And third, a discontinuation of some government services for weeks or even months, as the worst-case scenario.

"But of the three scenarios, Susilo believes that it was likely be the moderate to optimistic scenario," he said.