G-7 should consider Third World's plight

G-7 should consider Third World's plight

JAKARTA (JP): Indonesia, as the chair of the Non-Aligned Movement, has officially sent letters to members of the Group of Seven industrialized nations, asking them to take into account the interests of developing nations in any move they may take regarding the currency rates.

Finance Minister Mar'ie Muhammad said yesterday that the messages, delivered to the finance ministers of the United States, Japan and Britain, underlined Indonesia's concern over the steep appreciation of the Japanese yen against the U.S. dollar.

"We asked the industrialized countries to take into account the interests of the developing nations in any measure they may take regarding the yen-dollar realignment," Mar'ie told journalists, following a meeting with President Soeharto.

Mar'ie was meeting with the President to report on the latest G-7 finance ministers meeting, held in Washington yesterday, and the result of the Asia Pacific Economic Cooperation forum's finance ministers meeting in Bali last week.

Indonesia is one of the countries hardest hit by the sharp appreciation of the yen against the dollar, since early last March, because about 40 percent of its estimated US$90 billion foreign debts is denominated in yen and quite a portion of its export commodities is priced in the American dollar.

Nonetheless, Mar'ie reaffirmed that Indonesia's external balance is in a comfortable position and its macroeconomic condition is safe.

"But Indonesia, as the chair of the Non-Aligned Movement, sees the impact of the yen-dollar volatility within a global context, especially from the interests of the developing nations," Mar'ie said.

The finance minister also reported to the President about the planned annual meeting, on May 2, of the Manila-based Asian Development Bank in Auckland, New Zealand. (hen)