Rabu, 16 September 2009

BOMB TERROR NOT TO AFFECT ECONOMY SIGNIFICANTLY

By Andi Abdussalam

Jakarta, July 19 (ANTARA) - The bomb attacks on two international hotels in Jakarta this week are predicted to have no serious impact on the country's economic activities and investment, except on the tourism industry.

        Following Friday's bomb blasts which killed nine people and injured more than 50 others, the government assured that the country's economic prospects and fundamentals remained strong despite the bomb attacks at the two five-star Jakarta hotels.

        "A number of economic ministers have also taken anticipatory steps to restore market confidence and public tranquility so that the incident will have no serious impact on the economy," Finance Minister Sri Mulyani Indrawati said.

        In the meantime, the Indonesian Chamber of Commerce and Industry (Kadin) also expressed hope that the bomb attacks would not affect investment in the country. "We hope that the bomb blasts would not deter foreign and domestic investors in making investments in the country," Sandiago Uno of Kadin said.

        However, the tourism industry is the sector which seems to be affected. "It must have an impact but right now we do not have an idea how many tourists canceled their plan to visit Indonesia," Ben Sukma, chairman of the Indonesian Travel Bureau Association (ASITA) said over the weekend.

        According to Vice President Jusuf Kalla, the impact of the terror acts on the economy would not last for a long time. "Psychologically, it would have impact, possibly in the form of travel warning," he said.

        But he hope the impact would not last too long. "God willing, it would be overcome with a fast action," Kalla said. Kadin concurs with the vice president's expectation.

        Sandiago Uno, who is Kadin chairman for cooperatives and small businesses, said the bomb attacks would hopefully not affect the real sector too seriously. Investors were expected to maintain their intention to invest in Indonesia in the coming two years.

        However, Uno expressed concern that the incident would really affect the tourism sector. "I am afraid that the tourism sector which is now thriving in Indonesia would be affected significantly," he said.

        He said that the bomb blasts at Marriott and Ritz Carlton hotels that killed at least nine people would certainly affect Indonesia's tourism. Kadin, he said, hoped its impact on the tourism sector would not be too long so that the multiple effect of its development would later be useful for small businesses.

        ASITA chairman Ben Sukma, however, said that it could not be predicted whether foreigners would directly cancel their travel plans to Indonesia. "It is too early to speak about it because European and American people have yet to give a response with regard to their travel plans. So, they have not yet made any decision regarding this matter," he said.

        He predicted foreign tourists' response to the incident would be known not until next Tuesday. The ASITA chairman could neither predict whether the bomb blasts would have a negative impact on tourist visits to Jakarta only or to other regions as well.

        Apart from the tourism sector, the economy is predicted not to be affected too much. "We strongly regret the incidents that claimed the lives of locals and foreigners. We will try to convince (the market) that our economic fundamentals and prospects are still strong," Finance Minister Sri Mulyani Indrawati said.

        Sri Mulyani, who is also acting coordinating minister for economic affairs called the press conference to assess the extent to which an impact of the bomb attacks will have on the Indonesian economy.

        All relevant government agencies would make coordinated and consolidated efforts to monitor the impact of the bomb attacks on the economy. Security in and around vital facilities such as airports, seaports and terminals would be stepped up in the wake of the twin bombings on the Ritz Carlton and JW Marriott hotels in the upscale Mega Kuningan district of Jakarta.

        "The state enterprises minister and energy and mineral resources minister have instructed the management of state oil and gas firm Pertamina, state electricity company PLN, state telecommunications operator PT Telkom and other strategic state firms to step up security to support the economic activities in the country," she said.

        In the meantime, Timothy Chin-tien Yang, Representative of the Taipei Economic and Trade Office in Indonesia, said cooperation in many fields between Taiwan and Indonesia would not be affected.

        Bomb blasts could happen anywhere and anytime in the world. Even in the United States whose security system was the best in the world was not immune to bomb blasts, he said.

        "I do not think the bomb blasts will deter Taiwanese investors from investing in Indonesia," Timothy said.

        However, the investigation into the incidents should be handled seriously by the government so that foreign investors could be convinced that security in Indonesia was still good, he said.

        "I personally understand that security and conditions in Indonesia in general now are conducive, good and safe. There is nothing to be worried about," he said.***2*** (T.A014/A/H-NG/a014) (T.A014/A/A014/A/A014) 19-07-2009 18:15:07

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