ASEAN valuers asked to foster alliance

ASEAN valuers asked to foster alliance

JAKARTA (JP): Vice President Try Sutrisno yesterday called on
valuers of the six member Association of Southeast Asian Nations
(ASEAN) to foster partnerships in anticipation of rapid changes
in the economic format in the region.

Speaking at the opening of the eighth congress of the ASEAN
Valuers Association, the Vice President said closer cooperation
among valuers in the region is essential to curb the negative
consequence of the General Agreement on Tariffs and Trade (GATT),
which will lift barriers in the inflow of not only goods but also
services.

He said valuers in ASEAN should join forces to improve their
professionalism so that they will have more skills to compete
with valuers from more developed countries outside the region,
especially when the GATT agreement has been fully implemented.

The Vice President said that ASEAN countries, with their rapid
economic growth and large population, will become a very
attractive market in the future.

"Valuers in the region should, therefore, prepare themselves
to tap the growing business potentials," Try said, adding that
the preparation should not only be focused on the improvement of
valuing skills but also in improving their professional
integrity.

Honesty

Minister of Finance Mar'ie Muhammad told the congress
yesterday the worth of a valuer rests on his/her honesty, sense
of integrity and sense of responsibility even though there has
been a major development in the valuing technology.

"Without these qualities, all the technology in the world
cannot make the work of the valuer something of worth to his
customers and the public," the minister said.

The private sector and the government have legitimate interest
in the accuracy of the work of valuers.

The minister said that inappropriate valuation can lead to
difficulties to banks, insurance companies, pension funds and
other business players.

"In Indonesia, for example, we have seen the results of what
we call `mark-ups', including valuation of borrowers' assets that
far exceed the actual market value of those assets," Mar'ie said.

He said that the massive bad debt problem, which have severely
hit state-owned banks, is a good example of the consequence of
inaccurate valuation.

The minister said there must be a mechanism that could impose
severe penalties on valuers breaking professional standards.

"Flagrant violations must result in the exclusion of culprits
from the appraising profession," Mar'ie said.(hen)