Thu, 12 Sep 2002

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.