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)