Be prepared to liberalize financial services: Mar'ie
Be prepared to liberalize financial services: Mar'ie
JAKARTA (JP): Minister of Finance Mar'ie Muhammad said
yesterday that Indonesia must be prepared to face the
globalization of the world's financial services.
"We have to be ready to face the globalization of financial
services and the resulting fiercer competition," he said.
The minister said that all finance-related activities in the
country should be improved to enable them to compete in an era of
liberalization.
The World Trade Organization is expected to soon sign an
accord on the liberalization of the world's financial services,
one of three major service sectors left over at the end of the
seven-year Uruguay Round of trade negotiations which led to the
launching of a new world trade treaty in January.
"The professional skills of those engaged in financial
activities should be improved to enable them to compete in the
globalized market," the minister said after he and Canadian
Secretary of State for the Asia-Pacific Raymond Chan signed a
memorandum of understanding on financial cooperation between
Indonesia and Canada.
Under the agreement the Canadian government will provide a
Can$11.73 million grant to help Indonesia reform its financial
activities in such fields as insurance, pension funds and non-tax
revenue management.
The minister said that the technical assistance from the
Canadian government is expected to help improve professional
skills in the country's financial industry.
System
"We don't have to copy systems from other countries but it is
necessary for us to learn how to effectively manage our financial
services," he said.
The minister said the grant, which will be provided through
the Canadian International Development Agency (CIDA), will also
be used to finance activities related to the improvement of
procedures for non-tax revenue collection.
In his address following the signing of the agreement, Chan
said that the grant, which will be provided outside the financial
assistance commitment made by the Canadian government during the
recent Paris meeting of the Consultative Group on Indonesia, is
the first ever bilateral cooperation project between CIDA and the
Ministry of Finance of Indonesia.
"Domestic and foreign investments are increasing but to meet
the actual resource requirements, additional resources of
financing are still needed," he said of Indonesia's economic
condition.
He expected that the grant would result in an improved
regulatory framework in Indonesia's financial sectors, such as
pension funds, insurance and non-tax revenues.(hen)