Question of loyalty: Indonesian capital spending in China sparks controversy

Article Abstract:

Indonesia's ethnic-Chinese business community wields considerable wealth that it has sometimes invested in China. Non-Chinese Indonesians are increasingly viewing the ethnic-Chinese with enmity because of their seemingly disloyal partiality to China and excessive riches. Statements by two government officials reflected the widespread idea that the ethnic-Chinese are not interested in Indonesia's economic development. However, the contributions of Chinese businesses to Indonesian economic expansion belie this idea.

China, Foreign investments, Chinese (Asian people), Chinese in Indonesia

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Promising outlook

Article Abstract:

The World Bank will provide $5.1 billion to Indonesia in 1994 to finance its continued growth, but increased domestic savings and investment are also needed. Exports grew 16% in 1st qtr 1993 and inflation is under control, but high interest rates introduced to curb inflation resulted in cuts of bank loan growth as banks invested in short-term government notes (SBIs). Bank Indonesia discontinued SBIs in Jun 1993 and forecasts economic growth of 7% in 1993.

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Sumarlin's cautious line

Article Abstract:

Indonesian Finance Minister Johannes Sumarlin is optimistic about Indonesia's economic performance during 1992 and expects the economy to grow by about 6%. He believes Indonesia can easily service its entire foreign debt because the borrowed funds are invested in high-yielding projects. Sumarlin clarified that the government chose not to pull Bank Summa out of its difficulties because it wanted to caution other banks against taking unwarranted risks.

Economic policy, Interview, Sumarlin, Johannes

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