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Jakarta Post

Foreign businesses undeterred, to continue investment plans

A gathering of top business players and economic ministers in Jakarta on Wednesday has resulted in assurances of confidence from representatives of foreign investors in Indonesia's economy

The Jakarta Post (The Jakarta Post)
Thu, July 23, 2009

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Foreign businesses undeterred, to continue investment plans

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gathering of top business players and economic ministers in Jakarta on Wednesday has resulted in assurances of confidence from representatives of foreign investors in Indonesia's economy.

James Castle, a business consultant and survivor of Friday's bombings, said foreign businesses were committed to continuing their investment plans in Indonesia, a conclusion he said he had reached after receiving more than a thousand messages from friends and colleagues after the deadly attack.

"Investors are not afraid of doing business in Indonesia in the wake of the incident, because the country's economic fundamentals remain strong and resilient to the global crisis," Castle said in Indonesian.

The Indonesian Chamber of Commerce and Industry (Kadin) hosted the meeting, which was attended by Finance Minister Sri Mulyani Indrawati, Trade Minister Mari Elka Pangestu and State Minister for State enterprises Sofyan Jalil, as well as Kadin executives and representatives of foreign chambers, including the American Chamber of Commerce.

Castle, who many regard as the single most important adviser to foreign investors, through his consultancy Castle Asia, said he and fellow foreign investors were confident about the economy and the business climate that was conducive to investment.

"We expect no big changes in the future of the economy," Castle said.

"The country did quite well in the first and second quarters this year."

On that fated Friday, Castle had been hosting a regular breakfast meeting with top foreign CEOs at a restaurant at the JW Marriott Hotel, when a suicide bomber entered and set off the first of two blasts.

The Marriott attack and another at the nearby Ritz-Carlton Hotel killed 11 people and injured more than 50. Among the casualties were friends and fellow businessmen of Castle's.

At Wednesday's gathering, Castle called on the government to root out the mastermind behind the bombings as soon as possible.

James D. Filgo, treasurer and governor of the American Chamber of Commerce, said, "The economy remains normal several days after the blast."

He pointed out transactions remained good and companies were able to meet consumer demands.

He added the bombings would have no major impact on the tourism industry, saying the sector, slightly affected by the incident, would recover by the end of the year.

Minister Sri Mulyani said the government would not revise its estimate of economic growth, because the influence of the bombings was "insignificant".

"The economy will grow by around 4 percent this year," she said.

Kadin chairman M.S. Hidayat said he was satisfied with the government's fast response to maintaining economic stability.

Investors should not be afraid of the country's financial situation, he went on, because the government would ensure there were no more bombings in the future by improving security at business centers and strategic places.

The meeting also touched on efforts to develop the country's economy in the wake of the bombings.

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