U.S. Ambassador clarifies call to investors

U.S. Ambassador clarifies call to investors

The Jakarta Post, Jakarta

U.S. Ambassador Ralph L. Boyce on Wednesday clarified his
statement which suggested American investors "should wait" before
coming to Indonesia, saying he did not mean that.

"What I said was American investors are very eager to see the
economic reforms of the government implemented because there's
tremendous prospects in Indonesia. And they are waiting to see
the reforms programs pass into law," Boyce told reporters after
meeting Coordinating Minister for Security and Political Affairs
Susilo Bambang Yudhyono.

"I think that's quite different to the headline (of The
Jakarta Post) which somehow implied that we were advising
investors to stay away from Indonesia. That's not the case."

The Post's frontpage story on Wednesday under the headline
"American investors told to stay away" quoted Boyce as saying
that American investors "should wait for the government's
announced programs of economic reforms to begin to show some
signs of being implemented in a more rapid fashion."

And later was quoted as saying, "A lot of reforms are still to
be addressed...before responsible foreign investors could
consider making new commitments here."

Senior Expert to the Coordinating Minister for the Economy,
Mahendra Siregar said reforms were progressing steadily in all
aspects of the economy.

"The facts speak for themselves: during the same week this
statement was made, two large U.S. oil companies stated their
commitment to invest US$450 million in oil and gas fields; the
study of gas pipelines between Kalimantan and Java got its
financial approval from a U.S. agency; and an important U.S.
business association will convene their global annual meeting in
Indonesia," Mahendra said.

Consultant Harvey Goldstein of PT Harvest International
Indonesia said foreign investors mainly raise concerns on issues
like security and legal uncertainties.

"But if we wait until reforms are yielding results, Asian and
European companies will take over all the opportunities in
Indonesia," said Harvey, whose company has facilitated foreign
investments worth $30 billion since 1987.