http://www.thejakartaglobe.com/home/business-leaders-see-threats-in-new-thai-stability/450852
Indonesian Business Leaders See Threats in New Thai Stability Ririn Radiawati Kusuma & Muhammad Al Azhari | July 05, 2011 Indonesian business leaders on Monday hailed Thailand's smooth election but warned that stability in the country may make it more attractive for investors who might otherwise have targeted the archipelago. Chairman of the Indonesian business association (Apindo) Sofyan Wanandi said the weekend's victory by the Puea Thai party should improve stability in the Association of Southeast Asian Nations (Asean) bloc. "Most important is the political stability in Thailand, so that it can support Asean's economy," Sofyan said. Analysts said the victory by Yingluck Shinawatra, the younger sister of former Prime Minister Thaksin Shinawatra, was influenced by the ousted premier. Her party campaigned on the slogan "Thaksin thinks, Puea Thai does." The party made a range of promises during its campaign, including wage increases, infrastructure spending and computers for school children. These populist measures will cost billions of dollars, but may act to stimulate Southeast Asia's second-largest economy. Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Suryo Bambang Sulisto, said new confidence in Thailand's political stability may woo foreign investors. "Now, it is certain the investment climate will improve over there," Bambang said. "The previous prime minister, Thaksin, has a record of taking an investor-friendly approach. It is good for the stability of the region, but that is a clear signal for Indonesia to start dressing up and preparing to compete with Thailand to attract foreign investors." Apindo's Sofyan said a Thai economic comeback would pose a great challenge for Indonesia in its push to become the darling of foreign investors. "Thailand is Indonesia's competitor in the business climate. Currently, our position is higher than Thailand, but that is because of political stability," Sofyan said. Both Sofyan and Bambang said that Indonesia should improve its infrastructure to win the hearts of foreign investors. "If Thailand is in a stable condition, investors might invest in Thailand because they have better infrastructure," Sofyan said. Thailand, against whom Indonesia is competing to become the base for automotive production in Southeast Asia, has retained its investors despite political instability. "Now, with the improving investment climate, I bet we are going to see tougher competition from them,'' Bambang said. Indonesia's $700 billion economy remains the region's largest. Political analysts here said the change in government in Thailand gave a chance for Indonesia to again seek a meditation role in the conflict with Cambodia. Hariyadi Wirawan, an international relations lecturer at the University of Indonesia, said Indonesia should take more seriously the role the military still had in Thailand's domestic politics. "There should be a new angle that Indonesia needs to take in its role to mediate in the border dispute issue. It needs to learn some lessons on why it has not worked so far," Hariyadi said. Ratna Shofi Inayati, a researcher at the Indonesian Institute of Sciences' Center for Political Studies, said a new government in Bangkok would be "more open to the possibility of peace talks." President Susilo Bambang Yudhoyono's spokesman for international affairs, Teuku Faizasyah, declined to comment saying he would wait until the new leader had been sworn in. With additional reporting from Ismira Lutfia & Arientha Primanita [Non-text portions of this message have been removed] ------------------------------------ Post message: [email protected] Subscribe : [email protected] Unsubscribe : [email protected] List owner : [email protected] Homepage : http://proletar.8m.com/Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/proletar/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/proletar/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> To unsubscribe from this group, send an email to: [email protected] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
