By Lawrence Pintak

A new era has dawned for Indonesian business. An era in which it will become as important for a chief executive to be able to communicate his company's message in public as it is for him to read a balance sheet. An era in which public perceptions become economic reality. An era in which a few words can make or break a company's fate.

Welcome to doing business in the Information Age. Perhaps this new era for Indonesia can be traced to the privatization of the Jakarta Stock Exchange. Perhaps it really began with the Indosat launch. But by last November, there was no doubt it had fully arrived.

For 10 critical days, the eyes of the world were on Jakarta as leaders from around the Pacific gathered for the APEC summit. Reporters from the leading international news organizations shined a spotlight on the Indonesian economy. Trends were analyzed, companies dissected, policies critiqued. The good, the bad and the ugly sides of the Indonesian business world were all grist for the international media mill. It was an experience that some Indonesian business executives will treasure and others will try to forget. But for the Indonesian business world as a whole, it provided a taste of the perils and opportunities that come with the nation's emergence as an economic power.

The unprecedented exposure brought by APEC was made possible by the global information revolution, which over the past decade has changed the rules of the game for business and government alike.

From the jungles of Zaire to the Hong Kong bourse, the veil has been stripped away. Satellite technology means leaders in every walk of life now play on a world stage. For Indonesian firms planning to go public in 1995 or beyond, the implications are dramatic. International attention means international scrutiny. No longer can companies operate behind closed doors. No longer may they ration the information they provide to the outside world. Foreign investors won't stand for it.

Information is the currency that drives international investment. As Hasan Zein Mahmud, the president director of the Jakarta Stock Exchange, recently warned, failure to communicate essential financial information will destroy public confidence, creating a stock market which is "worse than a casino, where investors' money can be looted by insiders."

That, Hasan predicted, will "sound the death knell for any market that allows it."

For companies hoping to attract foreign capital -- whether on the Jakarta Stock Exchange or an international bourse -- there is, as they say, no place to hide. Instant global news gathering means a company's every action, whether at head office or a remote site, is fair game for the media, and through them, potential investors. No longer can a business present one face to the local audience and another to the rest of the world. International standards of conduct and candor always apply.

Sony Chairman Akito Morito -- one of the world's most successful businessmen -- learned that lesson the hard way. The book he co-authored, The Japan That Could Say No, was meant solely for the Japanese market. It contained controversial comments about the U.S. But in a world in which volumes of information can be transmitted thousands of miles in the blink of an eye, to think the contents of the book would not soon make headlines in the U.S. was naive. In the ensuing uproar, already unsettled U.S.-Japanese relations were further strained.

Morito apparently forgot not only that international news organizations saturate the world, but that the distinctions between the various national news operations are blurring further with each passing month. The major television networks in Japan, the U.S. and Europe are building international news gathering alliances that will eventually result in supra-national broadcasting powers. Media moguls such as Australia's Rupert Murdoch and Italy's Silvio Berlusconi are creating media empires that straddle the globe. Borders are erased beneath satellite footprints. In Murdoch's case, even nationality was no barrier. Banned from buying U.S. TV stations because he was not an American, he simply switched citizenship.

From the Jakarta bureaus of news organizations from The Wall Street Journal to Reuters, Bloomberg and Nikkei, specialist business reporters transmit a blizzard of information about Indonesian business every day. These stories end up not only in the traditional media -- newspapers, magazines and broadcast outlets -- but as well are fed directly onto video terminals and computer screens in corporate offices and trading rooms on every continent. They feed the investment community's voracious appetite for instant information, fueling instant decisions on where to put money.

For the businessman, this information revolution means that he must weight the public reaction of every move -- no matter how obscure the corner of the world in which it takes place. An ill-chosen word from an executive in some far-flung branch office today can result in banner headlines in the newspapers at corporate headquarters -- or the financial capital where your IPO is taking place -- tomorrow.

Likewise, decisions made at head office can reverberate through the world's financial markets within hours or even minutes. Though it takes place in mid-Pacific, drift-netting and whale hunting continue to be major roadblocks in U.S.-Japan relations. Likewise, the image of America's Union Carbide Corporate was devastated by the disaster in Bophal.

But along with dangers, the Global Information Revolution brings a wealth of opportunity for media-savvy international businessmen. The explosion of satellite and cable television around the world, for example, has created a vast range of specialty channels and programmes. There are stations devoted to business, consumer issues, travel, music, old-age topics -- the list is huge. There is even a channel in the U.S. devoted to nothing but the weather.

Here in Southeast Asia, there will soon be two satellite stations specializing in business issues as America's Cable News & Business Channel (CNBC) joins Asian Business News (ABN), which is already on the air. Cable systems with 500 channels will be in place in some countries by later this year. Telephone companies are experimenting with deliverying TV broadcasts through the phone lines. Direct broadcast satellite is making even more specialized programming available.

Along with the smorgasbord of broadcasting, there are literally thousands of specialty publications keeping a close eye on all aspects of business (In the U.S., for example, there are two dozen publications devoted to the biomedical field alone).

All this means tremendous opportunity for a company seeking to generate positive attention for itself -- whether to attract investors, partners or customers. Likewise, governments hoping to increase foreign investment, promote trade, attract tourists or even improve political relations have a host of new opportunities to get the word out directly to the public.

That's the good news. The bad news is that reporters probably are not going to seek you out -- unless you are involved in a negative controversy. That's why you must decide the kind of image you want to build, take steps to refine your message, then reach those audiences most likely to listen. Some tips for Indonesian firms considering going public:

Plan Ahead: The eve of your IPO is too late to begin building a reputation at home or abroad.

Use a Rifle, Not a Shotgun: If you are seeking international investors, carry out targeted publicity specifically aimed at those individuals. Don't waste money on a "scattershot" approach that reaches audiences who do not matter.

Look Professional: Your marketing materials reflect your company's image. A corporate profile full of grammatical or printing errors does not instill confidence among sophisticated investors.

Targeting the right media is essential --

Aim for the Specialists: In Western financial centers, there are a host of publications devoted both to investments and specific market sectors. These are the media being read by the stock analysts.

Communicate with Reporters Close-at-Hand: The Wall Street Journal, Reuters, Nikkei, AP-Dow Jones, The Financial Times and Bloomberg Business News are just some of the foreign business media with reporters in Jakarta. These journalists know Indonesia and are in the best position to fairly and accurately report your story. Perhaps most important, it is their job to cover Indonesian business, so they are going to be far more receptive than their colleagues in Hong Kong, New York or London when you or your representative call.

Be Realistic: Unless you are a company like Indosat, it may be a waste of time -- and money -- trying to attract the interest of major mainstream daily newspapers.

And don't expect to pollute the local rivers and then portray yourself as a friend of the environment.

Nor is advertising alone going to win backers. Studies show that news stories are far more credible than advertisements. This is particularly true when dealing with professional investors. Test this for yourself. Open Bisnis Indonesia or Fortune Magazine. What do you believe more, the slick ads in which a company presents the most positive aspects of its story, or an article written by the publication's own reporter?

The impact of news reporting is also why, when preparing a local PR effort or publicizing your stock abroad, it is critical for a company to look carefully at the public implications of each and every move. Set up a checklist. Take steps to safeguard the image of your company and your country. Ask:

If reporters examine my operation, is there something which will cause controversy?

Will foreign reporters perceive my actions differently than will the local media? If so, is there another approach to take that will avoid the problem?

What positive steps can i take to establish my firm as a major contributor to the local economy?

Do my actions measure up to international standards of conduct (even if technically within the letter of the law)?

The key to succeeding in your relations with the media -- as well as investors and the general public -- is to anticipate what questions will be asked and have answers ready. If there are potential problem areas, take steps to correct them before they arise publicly.

Despite that media spotlight we've talked about, be prepared for a huge level of ignorance. Be prepared to sell Indonesia first and your company's stock second. Aside from the managers of the handful of Indonesia and Southeast Asia funds, few businesspeople outside Indonesia know much about this country.

Be prepared to have your ego dented. Even the Bakries and the Lippos are far from being household names in the financial capitals of the U.S. and Europe.

In short, have the answers to all the questions before they are asked. Nothing shakes confidence among potential investors -- and the media -- more quickly than an executive who appears to be unsure of himself. Unless, of course, it is an executive who is caught lying.