APEC finance ministers to discuss yen's surge

APEC finance ministers to discuss yen's surge

JAKARTA (JP): The sharp fluctuation of exchange rates, notably
the steep surge of the Japanese yen against the American dollar,
will be one of the main topics of discussion at the second annual
meeting of Asia Pacific Economic Cooperation (APEC) forum's
finance ministers in Bali this weekend.

Officials of the organizing committee said yesterday that
Indonesia, as the host, wants the meeting to devote a great deal
of attention to the high volatility of the yen.

"The presence of American Treasury Secretary Robert Rubin and
his Japanese counterpart, Masayoshi Takemura, will provide a good
opportunity for the currency problem to be discussed," said one
official, who requested anonymity.

Bank Indonesia's Governor Soedradjad Djiwandono declined
yesterday to comment on the agenda of the Bali meeting, but he
did say that the Indonesian delegation would include one of his
managing directors, Boediono.

Rubin was quoted as saying in Washington earlier this week
that he would meet separately with Takemura in Bali.

The Indonesian official said discussions on the impact of the
yen's steep appreciation since early last month would be quite
timely because the two-day meeting was also due to receive
reports from the APEC forum's Economic Committee on exchange rate
fluctuations.

The 18-member forum has commissioned the Economic Committee to
conduct a study on the impact of drastic exchange rate movements
on trade and investment.

"We hope the final report will be available for discussion at
the Bali meeting, which will be chaired by Finance Minister
Mar'ie Muhammad," he added.

The first APEC finance ministers' meeting was held in
Honolulu, Hawaii, in the middle of March, 1994.

The finance ministers' meeting at the Grand Bali Beach Hotel
is also due to discuss private capital movements in the wake of
Mexico's financial crisis last December, which caused
apprehension among fund managers with investments in other
emerging economies, such as Indonesia, Malaysia, Hong Kong and
Thailand.

The meeting, scheduled to be opened by President Soeharto on
Saturday, will be attended by finance ministers from Australia,
Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan,
Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines,
Singapore, South Korea, Taiwan, Thailand and the United States.
(vin)