Indonesia to host fifth ASEM-FFM meeting in Bali

Dadan Wijaksana, The Jakarta Post, Jakarta

Poverty alleviation will be high on the agenda of the fifth Asia-Europe Finance Ministers Meeting (ASEM-FMM) in Bali from Saturday through Sunday.

The dialog forum will discuss various options to intensify efforts in fighting poverty, under the theme of Millennium Development Goal, a press statement from the Ministry of Finance said on Thursday.

Aside from poverty alleviation, the forum will also discuss how to strengthen economic ties between the two continents, develop inter-region finance corporation, and combat terrorism and money-laundering practices.

"As a whole, this forum aims to create stronger economic and financial corporation between the two continents, so as to push development and economic growth to a higher level," the statement said.

Details of the meeting's agenda remain vague, but analysts say the forum, which was first held in 1996 in Thailand, should be of major importance for Asia, particularly host country Indonesia, amid the rising profile of the EU in the global economy and the lingering recession in the United States and Japan.

While Japan is suffering from contraction, the U.S. is still struggling to recover from the recession.

On the other hand, the EU has been enjoying relatively more stable economic conditions, which is reflected by the current strong performance of the region's currency, the euro, against other major world currencies, notably the dollar.

Since it was introduced four years ago, the euro has become one of the world's top currency performers.

In Indonesia, calls have been on the rise for the government to switch from the dollar to the euro as a means of payment in international trade and to boost the euro component of foreign reserves.

It remains unclear if the forum will also look into the possibility of broader use of the euro in Asia.

According to the release, 10 Asian and 15 European nations have confirmed participation in the forum, as well as the European Commission, while Minister of Finance Boediono will head the Indonesian delegation as the host.

Four international financial institutions will also take part in the meeting: the International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB), and the European Central Bank (ECB).