Investors need clear legal rules, confidence in RI: S`pore`s ex-PM

Jakarta (Antara News) - Former Singaporean prime minister Lee Kuan Yew said what Indonesia needed to do to increae investment was to issue clear legal rules and cultivate investors` confidence.

"What investors need in Indonesia is legal certainty for agreements that have been concluded," Lee said at a joint press conference with Vice President Jusuf Kalla at the latter`s office here on Wednesday.

Lee said, if a business agreement had been made with an investor, it was important never to try to change it.

If the legal rules were upheld, Lee was optimistic that investors from the United States, Japan and other countries would invest in Indonesia.

"I think this is the most important point," he said, adding that another important thing the Indonesian people should keep in mind was that an investment made now was not to be of benefit today or tomorrow but in the next five, 10 or 20 years.

To convince foreign investors about the merits of investing in Indonesia, the country`s macro economic and manpower conditions should also be kept favorable.

At their meeting of about one hour, Kalla and Lee talked a lot about Indonesian, regional and global economic issues.

Lee said he was optimistic that in the next few years Indonesia would be able to record an economic growth rate of 7 to 8 percent.

Meanwhile, Kalla said problems surrounding the Defense Cooperation Agreement (DCA) between the two countries were not mentioned in his meeting with Lee.

"We did not talk about political issues nor the Defense Cooperation Agreement," the vice president said in a press conference after receiving the senior Singaporean statesman.

He said the topics of their discussion were related to global and regional economic issues.

Asked about the stalemate in efforts to resolve Indonesia-Singapore differences of view on the DCA, Kalla said the problem being faced by Indonesia and Singapore could happen between any other countries.

"But the problem can be solved peacefully," Kalla said.

Lee said Singapore had signed the DCA with the Indonesian government, not with any political parties in Indonesia.(*)
_________________________ Indonesian Business and Investment News Aggregator