Top ministers hold dialog with investors
Adianto P.Simamora and Berni K. Moestafa, The Jakarta Post, Jakarta
Top ministers holding key economic and political portfolio for the first time opened a dialogue with domestic and foreign investors on Friday, following strong warning earlier from the World Bank that the government only had six months to restore investor confidence as time is running out.
The meeting was organized by the International Finance Corporation (IFC), the investment arm of the World Bank, which together with other key donors under the umbrella of the Consultative Group on Indonesia (CGI) on Thursday pledged a total of US$3.14 billion in loans to help finance the 2002 state budget.
"This is the first meeting held between the government and the private sectors since the installation of the new government (late in July)," businessman Sofyan Wanandi, Chairman of the National Economic Recovery Committee (KPEN), said at a press conference.
He said that the meeting focussed on discussing several problems faced by both domestic and foreign investors in running its business here.
Present at the meeting were Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti, Finance Minister Budiono, State Minister for the State Enterprises Laksamana Sukardi, Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono, Minister of Justice Yusril Mahendra, top executives from the World Bank and International Monetary Fund, and some foreign and domestic business people.
While the problems voiced by the businessmen during the dialogue were nothing new, the fact that the government, often criticized for being uninterested in the opinions of others, did finally have a dialogue should be seen as a positive sign, participants said.
"The meeting is very essential for the business people because we (businessmen) can pronounce directly our problems to the government,"
"But the most important thing is the government's commitment to immediately take actions to solve the problems and improve the business environment," Sofyan said.
The main issues expressed by the businessmen still focused on the long-lasting problems of poor security condition and weak law enforcement. The investors also urged the government to speed up privatization and asset sale program.
This is basically in line with what the World Bank wants the government to focus on over the next six months to restore investors confidence.
The World Bank said at the CGI meeting that some $1.3 billion of the total CGI loan commitment was tied to progress in certain areas including good governance, poverty reduction, structural and legal reforms.
Commenting on the current security condition, Susilo said that since 1998 security conditions in Indonesia have become safer.
"Quite frankly there have been improvements, we can't deny this; still we are not satisfied," Susilo said.