Whither East Asia?

Whither East Asia?

For the countries of Southeast Asia the present commotion in
East Asia is both a blessing and a reason for concern. The
possibility is great that capital will flow out of that region in
increasing amounts due to the political turmoil. This trend is
bound to continue as rising labor costs put pressure on both
South Korea and Taiwan.

Southeast Asia on the other hand will become occupied by the
question of whether APEC should be given the authority to discuss
regional conflicts as well. Since last year, the idea has been
discussed in limited circles in Washington. It now seems possible
since it could serve the global interests of the United States.

The present conflict between China and Taiwan reminds us that
the East Asia region is not only a remarkable one, but one which
contains smoldering embers that could erupt into violence at any
time. For that reason the question arises whether East Asia, and
its 7 percent growth rate, will become the driving force of the
world economy.

We hope the political developments in that region will result
in greater investments in Indonesia. Taiwan has long chosen
Indonesia as an investment site, although many Taiwanese
businesses are now eying Vietnam.

The present crisis in the Taiwan Strait is a reminder of the
importance of maintaining domestic and regional stability. For
businesses, political stability is another important
consideration in deciding on making investments.

-- Bisnis Indonesia, Jakarta