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US envoy urges reform of Indonesia's legal system

America's ambassador to Indonesia, Ralph Boyce, has urged reform of what he calls Indonesia's "ineffective and corrupt" legal system to help attract badly needed foreign investment.

In a speech released by the U-S embassy in Jakarta, Ambassador Boyce says Indonesia faces no more serious economic challenge than fundamentally improving the environment for investment.

He praised several achievements by President Megawati Sukarnoputri's legal team, but said there was little sign the investment climate was improving.

The Ambassador said Indonesia's legal system was still ineffective and corrupt with Indonesian companies learning they can manipulate the courts.

He said that in the past few months, at least five American investors had been forced into court on charges that would never hold up in a U-S court.

20/04/2002 16:17:21 | ABC Radio Australia News

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