RI, Malaysia eye local currencies for trade

RI, Malaysia eye local currencies for trade

KUALA LUMPUR (Reuters): Indonesia and Malaysia Monday discussed the use of their currencies in bilateral trade, an Indonesian minister said after a meeting with Malaysian leaders.

"We discussed with Malaysian leaders investment cooperation and intra-Asean trade and the use of local currencies to help increase the value of local currencies and reduce dependence on foreign currency," said Adi Sasono, minister of cooperatives and small enterprises.

He said the use of local currencies in bilateral trading had been implemented successfully between Malaysia and the Philippines, and in Malaysia-Thai trade.

"In my opinion, we can do the same with Indonesia," he said after meeting with Prime Minister Mahathir Mohamad and his deputy, Anwar Ibrahim.

Adi said Anwar will send a letter to the Indonesian finance minister over the proposal.

Indonesian Manpower Minister Fahmi Idris said the country will improve its system of sending workers abroad particularly to Malaysia.

He said the government will only allow skilled workers like welders and skilled construction workers to work abroad.

About 755,000 Indonesians work in Malaysia and there is a demand for another 46,000 in the plantation and construction sectors, he said.