•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   

After meeting with Finance Minister Sri Mulyani Indrawati on Wednesday, international business leaders said a fair and transparent conclusion to the politically charged Bank Century bailout investigation would provide foreign investors with reassuring evidence that Indonesia’s legal system had improved, making them less reluctant to invest in the notoriously-corrupt country.

“The most important thing is transparency, that everything goes according to the laws and regulations,” said James Castle, an American business consultant and representative of the International Business Chamber.

“We could not ask more of our friends to come here because they view the legal system as lacking transparency. They prefer to invest elsewhere, such as China,” he said.

The International Business Chamber and representatives of 15 national chambers of commerce, including the US and British chambers, met with Sri Mulyani, one of the perceived political targets of the investigation. Sri Mulyani played a key role in deciding to bail out Bank Century in November 2008.

Sri Mulyani and Vice President Boediono, who was Bank Indonesia governor at the time of the bailout, are under attack for their roles in deciding to bail out the bank. Analysts say they are vulnerable because they do not have strong political bases. Both are technocrats who are respected by international investors.

There has been speculation that figures within the Golkar Party, led by its chairman Aburizal Bakrie, and other members of President Susilo Bambang Yudhoyono’s coalition government are plotting to oust the pair in the hope of promoting their own nominees to these powerful positions. Sri Mulyani has said Aburizal is targeting her personally.

The rising political tension has made market players nervous, analysts say, leading them to adopt a wait-and-see attitude before committing more capital to the country’s markets. Trading volumes on the Indonesia Stock Exchange have fallen sharply in recent weeks.

John A Prasetyo, deputy chairman for international cooperation at the Indonesian Chamber of Commerce and Industry (Kadin), said the Bank Century probe had veered far off course.

“We discussed information surrounding the Bank Century case with Sri Mulyani. As far as we are concerned, this case is no longer about the economy but about politics,” he said.