Asia must clean up its economies, says Mar'ie Muhammad
Asia must clean up its economies, says Mar'ie Muhammad
NEW YORK (AFP): Indonesian Finance Minister Mar'ie Muhammad
said here Friday that Asian countries must be more transparent in
their financial dealings in order to rebuild confidence in their
economies.
"Confidence-building becomes the core of the issue, and this
is not merely an economic issue," he said in a speech to the Asia
Society.
"To restore confidence should begin at home, although the
support from the international community is very important." The
key to recovery was "transparency in the markets," according to
Mar'ie.
"Full disclosure allows investors to assess the risks
appropriately at the macro and micro level, and will enhance
confidence in the market."
South Korea has been accused of disguising the full extent of
its financial crisis, which resulted in a US$55 billion-IMF
bailout.
Mar'ie said he did not blame currency speculators for the
recent weakness in the rupiah which sank to its lowest level
overnight after reports of President Soeharto's health.
He said the present financial turmoil, including the crises in
Thailand, Indonesia and Korea, were triggered and exacerbated by
"fragility in the financial sector and huge private foreign
borrowing."
Indonesian officials earlier said Soeharto had canceled a trip
to an Association of Southeast Asian Nations (ASEAN) summit in
Kuala Lumpur early this week but that his health had improved.
Doctors had advised him not to attend, they said.
The minister said that although the slowdown in economic
growth in Asia will be "painful," there are lessons to be learned
from the crisis.
Mar'ie said that although governments have a key role to play
in market economies, their operations must become "more
transparent and less distorting."
"The role of government is decreasing through the broadening
and deepening of deregulation ... and further liberalization of
the economy," he was quoted as saying Associated Press.
Speaking at the Asia Society, he said government should
"arbitrate conflicts" among business interests.
"The role of the government is to achieve macroeconomic
stability, deliver core public services, provide appropriate
market regulation, and promote the rule of law," he told the
audience.
Responding to questions after his speech, he said Soeharto is
in good health, and claimed his government has the political will
to institute "painful" reforms to stabilize the economy.