US Business Mission Finds Indonesia Committed to Recovery & Reform, January 21, 2000

US Business Mission Finds Indonesia Committed to Recovery & Reform

Jakarta, Indonesia, January 21, 2000. Thirty of America's leading companies represented by over 50 executives completed a three-day business mission to Indonesia today. The group, members of the US-Indonesia Committee of the US ASEAN Business Council, concluded that the Government of Indonesia, under President Abdurrahman Wahid, is committed to enacting changes necessary to spur economic recovery and resolve security concerns around the country.

"We believe President Wahid has the ability to reestablish security and move this economy forward. He has enlisted outstanding individuals to help him achieve these objectives, and we believe investment can begin returning to this important country very soon," said Ernest Z. Bower, President of the US-ASEAN Business Council and mission co-leader.

The American delegation held meetings with President Abdurrahman Wahid, his cabinet members, Parliamentary leaders Akbar Tanjung and Amien Rais, Emil Salim and the National Economic Council, Sofian Wanandi and the Business Advisory Council and other leaders of the Indonesian business community.

"The new Government of Indonesia has accomplished an incredible feat in its first 100 days - it has reestablished ties with the IMF, negotiated a commitment for US$5 billion in additional funding through 2003, submitted a budget that we understand has broad support, and is focusing on priority issues such as judicial reform, bank recapitalization and corporate restructuring," said Michael Gadbaw, Chairman of the US Indonesia Business Committee and Vice President of General Electric Company. "The commitment is strong, and implementation will be very challenging. What gives us hope is that President Wahid has recruited some of the most talented managers in Indonesia and empowered the Indonesian people. We believe he can succeed in his mission."

The US-ASEAN Business Council delegation visited Jakarta to assess the investment environment in Indonesia and to expand its regular dialogue with Indonesian companies. The goal of this dialogue is to determine areas of mutual interest and to make recommendations to governments on how to expand trade and investment ties. The delegation concluded that key signs of progress going forward will be the success of IBRA's reallocation of the country's productive assets, rebuilding of confidence in the courts, and recapitalization of the nation's banks.

The group also outlined the benefits of investment, including job creation, transfer of management skills and technology to the Indonesian people, and expanded links to global markets. The US-ASEAN Business Council's members recently funded a US$4 million scholarship program to keep Indonesian students in the U.S. in school during the crisis, and supported an UPLIFT Indonesia airlift of medical supplies to hospitals around Indonesia.

The mission delegation included senior executives from the following US companies: ABB Alstom Power, ARCO, BankBoston, Bell Atlantic International, Black & Veatch , Amoseas, BankBoston, Caltex, Cargill, Chevron, Cigna, Credit Suisse First Boston, Daimler Chrysler, Edison Mission Energy, Enron, ExxonMobil, Federal Express, Ford Motor Company, Freeport McMoRan, General Electric, General Motors, Lockheed Martin, McDermott, McGraw Hill, Motorola, Oracle, Parsons, Raytheon International, Texaco, United Technologies, Corporation, University of Southern California, Unocal, Uplift International, AmCham Singapore, and AmCham Indonesia.

For more information on the mission, please contact Walter Lohman at wlohman@usasean.org. For information on the US-ASEAN Business Council or general information on the ASEAN region, please contact John Goyer at 202 289 1911 x 227; fax 202 289 0519; email: jgoyer@usasean.org, or visit the Council’s Web site at www.us-asean.org.

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