Mar'ie reaffirms deregulation

JAKARTA (JP): Finance Minister Mar'ie Muhammad reiterated yesterday that trade and investment deregulation is one of the five basic elements of Indonesia's strategy to sustain robust economic growth.

Mar'ie told the 1994 Pacific Rim Forum in Beijing that Indonesia will continue the ongoing process of deregulation, reduce production costs and implement policies that are capable of creating a diversified, self-reliant economy.

The forum, according to a press release from the finance ministry here, is attended by 650 officials, businessmen and economists from various countries.

He cited macroeconomic stability, improved legal framework, human resource and infrastructure development and privatization as the other four elements of the strategy.

"Macroeconomic stability has been one of the foundations of the Indonesian economy over the past 25 years and it will continue to be so," Mar'ie noted in his address.

A copy of his speech was released here yesterday.

He pointed out that with a total gross domestic product of US$130 billion last year, the Indonesian economy was the sixth largest among the developing countries.

"But if Indonesia is to continue delivering higher standards of living and economic growth, it will have to broaden its export base into higher value-added products," he said.

The minister cited balanced budget, an open capital account, prudent fiscal and monetary policies and a competitive exchange rate as vital elements of the policies to maintain macro-economic stability.

Mar'ie also welcomed the development of the Asia Pacific Economic Cooperation (APEC), citing its complementary role to ASEAN.

"The combination of a small group like ASEAN, that can coordinate trade and investment policies, and a larger, more diverse group like APEC for the purpose of dialogs and discussions provides the foundation for enhanced regional cooperation," he added.(vin)