RI urges tighter control on global financial system<\/p>\n
JAKARTA (JP): Indonesia has called for tighter control on
\ninflows of offshore funds to avert another financial crisis in
\nthe future.<\/p>\n
Coordinating Minister for Economy, Finance and Industry
\nGinandjar Kartasasmita said on Wednesday that tighter monitoring
\nof the inflows of offshore funds is needed to curb currency
\nspeculation, which often results in financial turmoil in a
\ncountry.<\/p>\n
The Asian financial crisis, which broke out in the middle of
\n1997, should become a good lesson for other developing countries,
\nGinandjar said in his speech at the Ninth Summit of the G-15 in
\nMontego Bay, Jamaica.<\/p>\n
The supervision of the international and domestic financial
\nsystems, as well as the inflows of offshore funds should
\ntherefore be strengthened to prevent the recurrence of an Asian-
\ntype crisis in other developing nations, he said.<\/p>\n
\"There is a strong need to establish greater transparency and
\nmore information on private fund inflows,\" he said in his speech,
\na copy of which was made available to The Jakarta Post.<\/p>\n
Ginandjar said that other important measures would be to boost
\neffective procedures for private sector participation in
\nresolving and forestalling financial crises.<\/p>\n
\"This includes efforts to make creditors bear more fully the
\nconsequences of their actions,\" he said.<\/p>\n
Moreover, there should be measures to discourage excessive
\nreliance on short term financing while strengthening countries'
\ncapabilities of withstanding sudden shifts in market sentiment,
\nhe said.<\/p>\n
\"There is a need to promote orderly integration of
\ninternational financial markets including capital account
\nliberalization,\" he said.<\/p>\n
Ginandjar said that recovery from the Asian financial crisis,
\nwhich had adversely affected the global situation, was still long
\nand winding and the prospects of the global economy in the next
\nfew years seem uncertain because the Asian crisis has begun to
\nreveal its global character.<\/p>\n
\"But the Indonesian crisis has not only affected the economy
\nbut has also magnified our social tension and created political
\ninstability,' he said.<\/p>\n
The G-5, holding its ninth summit in the Jamaican resort of
\nMontego Bay, was set to bolster cooperation among developing
\nnations and to provide input for other international groups like
\nthe World Trade Organization (WTO) and the Group of Seven rich
\nindustrialized states.<\/p>\n
Members of the G-15 are Algeria, Argentina, Brazil, Chile,
\nEgypt, India, Indonesia, Jamaica, Kenya, Nigeria, Malaysia,
\nMexico, Peru, Senegal, Sri Lanka, Venezuela and Zimbabwe. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-urges-tighter-control-on-global-financial-system-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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