PRESIDENT BUSH VISIT TO INDONESIAN
ECONOMIC FORECAST

by Achiria Hidayati
International Relations

President Bush courtesy visit has brought a fresh air for Indonesia economic sector because United State once more gave Indonesia donation fund amounting US$ 300 billion. That amount definitely had it is own domino effect for Indonesia economic matter.

Some data tells us that Indonesia is in the 5th rank of investors interest in putting their fund In Indonesia (source: www.bisnisindonesia.com ). The government of Indonesia hopes that Bush visit to Indonesia will bring the trust of the investor to come and make a new investment in Indonesia. Bush safely visit to Indonesia indicates a condusive economics situation. But, Nowadays, oil and gas business in Indonesia doesn't seem to have a good charm at the investors eyes. Since the value creation of barrel oil ekivalen in Indonesia is very low, leads to a conclusion that maximize eksploration will not earn a maximum income for the investor. This type of mindset reflect at any field of business in Indonesia. Why does this thing happens? Moreover Indonesia has a great natural resources which are not yet maximally managed.

For the last six years, USA has invest 1 billion USD for Indonesia ( Mari Elka Pangestu in www.antara.co.id ) Therefore, USA will always honor Indonesia as a profitable country for USA since Indonesia is lays on a very strategic location. This location gave Indonesia a perfect part to role in the international economics circulations.

Indonesian civil servant habit and the lack control of government assume as the main cause for this condition is illegal picking commonly happens in trade ( Export - Import ) trafficking. Illegal picking culture will never be vanish unless the people is totally realize that what they have done is wrong. So, Bush visit to Indonesia will not give a prominent effect on Indonesian business circle activities for 2007 and forward.