U.S. businesses bide time on Indonesia

JAKARTA (JP): Investors remain wary of making a commitment in Indonesia amid widespread pockets of unrest, the chairman of the U.S.-Indonesia Business Council said on Tuesday.

Speaking after meeting with President Abdurrahman Wahid on Tuesday together with 30 U.S. other businesspeople, Michael Gadbaw said one of the reasons he assembled a business mission to the country was to break the ice on the issue of foreign investment.

"One of the reasons we are here now is because we, the international business community, has for quite some time been waiting to see how the political situation evolves," Gadbaw said.

"The waiting period is not over yet."

Nevertheless, he was optimistic the government of President Abdurrahman Wahid would be able to tackle the mounting problems because "we feel the government enjoys broad support" from the people.

"Even though the challenges are very great, yet the Indonesian government is bringing a great deal of expertise and a great deal of skills in joining together the consensus that it needs to address the challenges."

The delegation of 60 businesspeople started its official three-day visit on Tuesday. The businesspeople represent 30 U.S. corporations, most of which have a presence in Indonesia.

After meeting the President, the U.S.-Indonesia Business Committee and its Indonesian counterpart, the Indonesian Chamber of Commerce and Industry's U.S. Committee, held a roundtable on business partnerships.

Sofyan Wanandi of the Gemala Group, who accompanied the American businesspeople in their meeting with the President, said members of the delegation would continue to invest in Indonesia because they were already familiar with its business environment.

"Because most of the 30 companies already have operations in Indonesia, I think they would express their commitment again to increase their investment in Indonesia," Sofyan said.

Gadbaw, who is also vice president of General Electric, expressed both his and his fellow U.S. colleagues' commitment to investing in Indonesia.

"We are here because we want to be part of Indonesia's growth and economic development," he said.

Gadbaw said the U.S. businesspeople were interested in knowing more about four issues, involving the financial system, corporate debt, transparency and government policies.

"Our reaction is a very positive one. The Indonesian government understands very well what our concerns are, and it is in the process of finding an answer, a formula that works for Indonesia," he said.

Among the companies represented in the mission are Enron Asia Pacific, Amoseas Indonesia Inc., Mobil Oil, Exxon, ABB Alstom Power, Bell Atlantic International Wireless, DaimlerChrysler, Edison Mission Energy, BankBoston, Cigna International, Cargill, Ford Motor Company, Oracle Corporation, United Technologies Corp., Black & Veatch Corp., Parsons Asia Pacific and UPLIFT International. (prb/rid)