JakartaPost-Aug 31
Foreign businesses in Indonesia have expressed concern that widespread chaotic protests may be a telltale sign of political instability. “I am very worried about the death that occurred [on Thursday] in such a difficult economic situation. I hope the Indonesian government will respond appropriately and make all efforts to ensure that the situation does not worsen,” Lee Kang Hyun, chairman of the Korean Chamber of Commerce and Industry in Indonesia (KoCham), told The Jakarta Post on Friday. Asked on Sunday whether the protests were a sign of political instability, Lee said, “of course” and added that he “desperately” hoped for the government and protesters to have a “sincere dialogue and regain stability as soon as possible”. The protests began on Aug. 25 when a crowd, including many highschoolers still in their white-grey uniforms, flooded the area around the Senayan legislative complex to protest against an exorbitant pay hike for lawmakers. More protests followed on Thursday, mobilized mainly by labor unions but joined by a myriad of ojol drivers. In anticipation of further bedlam, several activities were canceled on Friday, including business events. Kocham’s Lee said the Friday protest coincided with a visit of the Korean government’s trade department head to attend a seminar organized by Korean companies on how to respond to US tariffs. That event went ahead, thanks to its location being quite far from the hot spots, but Lee noted that, “if these conditions persist, meetings will be canceled” and overall economic activities would be affected. Syafruddin Karimi, an economist at Andalas University, told the Post on Friday that “the capital market will react fast to every political flare-up, because it considers it as a threat to legal certainty and business security. […] And thus, maintaining social stability is not just a political affair, it’s also an absolute requirement to maintain economic trust and ensure investment keeps flowing into Indonesia,” said Syafruddin. Read more at:
