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