New York (ANTARA News) - State Enterprises Minister Mustafa Abubakar has invited US capital investors to do business in Indonesia as state enterprises in the country had been constantly growing although the economy in Asia in general has been declining.

"I believe that the Indonesian economy which was firm in facing the 2009 crisis was one concrete proof that our business companies had now become much improved, with a strong balance and big chance for growth," Mustafa said when addressing capital market businessmen at a New York Midtown Conference and Client Center on Tuesday.

Mustafa was in New York under an Indonesia Corporate Day 2010 program of the Indonesian government to give the latest picture on the activities of Indonesian state enterprises and the government`s strategy in boosting the state enterprises.

Mustafa presented the Indonesian government`s plan to reach a 7.7 pct economic growth; 12.1 pct investment growth, and a total investment of Rp10,000 trillion; infrastructure investment of Rp1,500 trillion; and a 15.6 pct export growth.

"The state-owned enterprises will be playing a key role in reaching the targets," Mustafa said.

He also explained that the existing 141 state-owned companies with a total assets of 239 billion dollars by the end of 2009 -- accounted for 40 pct of Indonesia`s gross domestic product.

In the meantime, total income in the same period reached 106 billion dollars with a net profit of 9.4 billion dollars.

With regard to the capital market, Mustafa said, most of the state-owned enterprises has shares of good reputation (blue chips) and four companies namely Telkom, Bank Mandiri, Bank Rakyat Indonesia, and Perusahaan Gas Negara (gas distributor), belonged to the 10 top companies in the Indonesian capital market.

Complaints

Indonesia Corporate Day 2010 was held by Bank of America Merril Lynch with support of Goldman Sachs, Danareksa Sekuritas, Mandiri Sekuritas and Bahana Sekuritas in two American cities, Boston (July 26) and New York (July 27).

The program included individual and group meetings between Indonesian and American companies.

The Indonesian state enterprises at the meetings in Boston and New York were Aneka Tambang, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Tabungan Negara, Jasa Marga, Perusahaan Gas Negara, Semen Gresik and Telkom.

A total of 130 investors were involved in the meeting in Boston, and 185 others held meetings in New York.

A similar program will also be held in London (July 29) and Edinburgh (July 30), and Timah Tbk will join nine other state enterprises in meetings with British capital market businessmen.

Minister Mustafa told ANTARA that in the meetings in Boston and New York the US investors had great expectations of sectors which they believed have promising business prospects.

Nevertheless, he said he still have some worries and complaints they had expressed in making an investment in Indonesia, such as with regard to long-term investments like land leasehold, infrastructure -- especially electricity-- and social and political stability.

The government, he said, has been constantly trying to overcome these problems for the smooth operation of the foreign investors in Indonesia.

When presenting his explanations at the New York Midtwon Conference and Client Center, he also tried to convince the US capital market businessmen that the Indonesian government is trying to develop the Indonesian state enterprises into world class companies, namely profitable, reliable, transparent companies with firm targets.

The vision, Mustafa said, carried out by the government by way of four strategies, namely changing working habits and restructuring, privatization and strategic development.

(H-NG/A014/S026)

Editor: Suryanto
COPYRIGHT © 2012

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