U.S. investors maintain `wait and see' stance
U.S. investors maintain `wait and see' stance
JAKARTA (JP): U.S. investors are continuing to hold off on new
investment in Indonesia despite signs of improvement in the
country's economy and social conditions, an American trade
official said here on Wednesday.
U.S. commercial attache Richard Rothman said American
businesspeople needed more time to learn about the economic
progress made before becoming involved in new businesses.
"The image of Indonesia is improving. However, the U.S.
investors will need time to learn about the business situation
here," Rothman said at a news briefing to announce the U.S.
government's plan to hold a trade exhibition in Indonesia in July
2000.
He acknowledged that political and social stability as well as
economic activities improved significantly following the election
of President Abdurrahman Wahid in October, but U.S.
businesspeople needed certainty that the promising signs were
sustainable.
Ensuring the stability of the rupiah would also serve as a key
factor in the return of foreign investors, he added.
The rupiah, which fell to below 10,000 against the U.S.
dollar, has strengthened to the 7,000 to 7,500 level in recent
months in line with an improvement in the country's economic
fundamentals.
He was confident the eight-month-period before the trade show
would provide enough time for the investors to gauge the progress
in the economy and to learn about the business situation.
"We think that in the next eight months, investors will begin
to return to Indonesia."
Many American investors are interested in purchasing the
assets of local companies which are currently under the
management of the Indonesia Bank Restructuring Agency (IBRA), he
said.
The American Product and Hi-Tech Show 2000 trade expo will be
held in Jakarta from July 1 to July 4 to commemorate U.S.
Independence Day. It will be sponsored by the Commercial Service
of the U.S. Department of Commerce in cooperation with
Indonesia's Ministry of Industry and Trade, the office of the
State Minister of Research and Technology and the Indonesia
Exhibition Companies Association.
About 200 companies are expected to take part in the show,
which will feature mainly consumer-oriented products. (06)