Top ministers hold dialog with investors

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.