Indonesian officials tout long-term prospects at Houston oil meeting

Sam Fletcher
OGJ Online

HOUSTON, Sept. 24 -- Indonesia is working hard to resolve its many political and social problems and to encourage foreign investment, said President Megawati Soekarnoputri and other government officials at meetings with energy industry executives Sunday and Monday in Houston.

At the start of Monday's day-long conference, Susilo Bambang Yudhoyono, Indonesia's coordinating minister for political and security affairs, said business investments in that country "may encounter some disappointments" in the short-term but will be rewarded in the long run.

"Recovery is in process, and good prospects undoubtedly lie ahead," said Yudhoyono, a retired four-star general. "I would encourage investors to adopt a long term view and take this opportunity to invest now while the choices are many and opportunities plentiful," he said.

Yudhoyono acknowledged, "An unwelcome degree of uncertainty has emerged," including:

-- An overall weakening of solidarity and cohesiveness of Indonesia as a nation.

-- Reduced respect for law and order.

-- A decrease of security and safety in several regions.

The economic crisis of 1997-98 hindered the government's efforts to address those problems. Moreover, Yudhoyono said, the situation was worsened "by conflict among the political elite, the dispute between the executive and legislative branches, coupled with the crisis of leadership that has occurred during the past couple of years."

However, he said, those problems have been resolved with the appointment of President Megawati and her partnership with Vice Pres. Hamzah Haz.

In a speech Sunday, President Megawati emphasized "my determination to take peaceful measures through a conscientious political process" to settle separatist movements in Indonesia's troubled provinces of Aceh and Irian Jaya.

The Indonesian government granted special autonomy status to Aceh last month. "I hope to do the same for Irian Jaya in the near future," said Megawati.

She also must deal with a variety of other issues, including repositioning the role of the military; unemployment; repayment of foreign debt; and eradication of corruption, collusion, and nepotism.

Yudhoyono said that, after nearly 35 years of involvement in Indonesian politics, the military can't disengage overnight. Nevertheless, he said, it is attempting to stop "playing politics."

Megawati also encouraged US companies to invest in the oil and gas sector of Indonesia, which is Asia's biggest energy exporter and the world's largest exporter of liquefied natural gas. She said Indonesia will soon issue regulations to facilitate private sector participation in power generation, thermal energy, and energy exploration.

Megawati is on a 9-day visit to the US at the invitation of President George W. Bush.

Following the Houston energy conference, she and other Indonesian officials are scheduled to meet with UN Sec. Gen. Kofi Annan in New York.

She is accompanied by Minister of Energy and Mineral Resources Purnomo Yusgiantoro; and legislator Arifin Panigoro, who is also the president of PT Medco Energi International Tbk, Indonesia's oil and gas exploration and production firm.

Contact Sam Fletcher at [email protected]