Jakarta – Recent religious and ethnic riots in Indonesia, political uncertainty and the country's questionable economic regulations will not have a great impact on US business interests here, representatives of a 100-strong delegation of US business figures said here.
"With respect to Indonesia, I'm very optimistic that some of the things you have talked about... is not a problem," former US Secretary of State Alexander Haig told a press conference on Thursday.
He said that it would not be a problem because people of Indo-nesia have benefited so dramatically as a result of the recent economic growth levels that even the most shortsighted would be reluctant to risk not continuing with this progress.
Indonesia has been rocked in recent months by violent unrest, including ethnic and religious riots in which scores have been killed and hundreds of buildings and other property, including churches and temples, have been destroyed.
Analysts said the riots indicated growing political, social and economic dissatisfaction within Indonesian society.
Chairman of the US-Asean Business Council George David explained that recent unrest would have little impact on US business interests here because he believed Indonesia could use its experience to solve current political problems, including the issue of political succession.
Both General Haig and Mr David stressed the importance of political stability to economic development, the Jakarta Post reported yesterday.
Mr David said US investors generally praised Indonesia's economic reforms, including regulations which allowed for 100 percent foreign ownership of firms here.
But US executives told journalists that complaints from US businesses operating in the country included corruption and a lack of regulation transparency.
For instance, Jakarta's so-called national car policy – which gives exclusive tax breaks to a car company owned by President Suharto's youngest son – revealed last year was criticised at home and abroad.
Japan, the United States and the European Union late last year filed a complaint to the World Trade Organisation, saying the national car policy breached international trade rules.
The US businessmen also pointed out that there was difficulty in finding Indonesians skilled in technology.
The US delegation, which included top executives from Chrysler, GE, Mobil Oil, Lockheed and McDonald's, were here to attend a two-day Asean business meeting which ended on Thursday.
US foreign direct investment in Indonesia has reached US$5 billion (S$7 billion) annually in recent years, the US-Asean business council said. – AFP.