|
(
Indonesian and American friends living in Jakarta tell me the battle is among the elite, that no huge demonstrations have taken place in the country since May 1998 when Suharto stepped down. "Rent a crowds" are now a fact of Jakarta life. The common people generally ignore the Jakarta soap opera. Most of the country, except 5%, is not affected by the separatist and ethnic violence in
Aceh, Central Kalimantan, Moluccas and Irian Jaya. The trials of eking out a living absorb the energies of the vast majority.
Recent visitors from Indonesia, including IBRA's top official and a group of first rate analysts from
CSIS, don't yet see a solution, but yet, they believe the country will one day develop a new consensus, at which point stability will return. The time period varies from three years to ten.
Business can still be done within this period of instability but it has grown harder and Wahid's government is incapable of creating coordinated, sellable policies attractive to foreign companies. At every turn a new taxation rule, tariff, labor rule, provincial action or court case, goes against a long term foreign partner that promoted the country during many of its darkest moments and whose investments and steady tax payments helped stabilize the economy. Many AICC members are in this group.
Rather, than give up, our members are engaging --as best they can-- with the new elements: NGO's, Parliamentarians, regional governments, security apparatus and social organizations. The US government ought to support more of these kinds of interactions. From them will emerge policies and practices that are simultaneously conducive to economic growth and equitable distribution of opportunity. Firms with existing operations, should contemplate new investments (certainly asset prices are at a historic low point) where they make sense. The country and its market will not go away and neither should we. We'll need to sweat more for the next ten years along with our courageous Indonesian friends who are planting the seeds for a more equitable future. We pray their work will not be in vain.
(The above viewpoint may not necessarily reflect that of individual member companies of AICC)
vvvvvvvvvvvvvv
 | Banking and Finance
|
Indonesia's gross int'l reserves hit $28.76 bln
JAKARTA, April 10 (Reuters) - Indonesia's central bank said on Tuesday its international reserves rose to $28.76 billion as of the first week of April from $28.67 billion the previous week due to revenues from oil sector.
International reserves are calculated using gross foreign exchange reserves and only include liquid assets.
Net foreign exchange reserves rose to 124.689 trillion rupiah in the first week of April from 124.295 trillion rupiah a week earlier based on a rupiah exchange rate of 7,000 to the U.S dollar.
Paris Club Lenders Oppose Indonesia Asset-Backed Plan
JAKARTA -- The group of official "Paris Club" creditors has warned the Indonesian government not to go ahead with the plan to issue asset-backed securities, as it could imperil its ability to service its obligations to them in the future.
"Creditors also understand that such debt could seriously endanger the programs of international financial institutions on behalf of Indonesia," the creditors said in a letter to Senior Economics Minister Rizal Ramli, obtained by Dow Jones Newswires.
"The Paris Club creditors therefore urge you not to issue such securities," the letter added.
The Indonesian government is planning to issue around $400 million of securities initially this year, which will be backed by natural gas export revenues.
The World Bank has also expressed its reservations to the government's plan. The creditors have strongly urged Indonesia to promptly address outstanding problems with the International Monetary Fund in order for the rollover of $2.7 billion of IMF loans to Indonesia maturing between Apr. 1, 2001 and Mar. 31, 2002 to come into force. Dow Jones, Apr. 17
Japan's Marubeni OKs Indonesia's Chandra Asri Debt Plan
JAKARTA -- Japan's Marubeni Corp. has agreed to the Indonesian government's debt workout proposal for petrochemical company PT Chandra
Asri, the government said Thursday. "Marubeni has sent a letter to the government stating its agreement on the government's proposal," said the office of the senior economic minister. The government last month told Marubeni to accept its proposal on the restructuring of Chandra Asri's debts. The government threatened to take the case to the courts if Marubeni dis
(
| 
