RI to become int'l financial center by 2000

RI to become int'l financial center by 2000

JAKARTA (JP): Indonesia, with its free foreign exchange regime
and the rapid growth of its economy, has the potential to become
one of the major international financial centers by the turn of
the century, an executive said yesterday.

Before addressing the 39th seminar of the Association of
Cambiste Internationale, President of the Foreign Exchange Club
Indonesia Jeffrey Turangan told journalists that although
Indonesia's financial market is still "relatively young," it has
enough international recognition.

"We are the fourth Asian country elected to conduct the
Association's seminar. Next year, we will host an Asia Pacific
Foreign Exchange Assembly," Jeffrey said.

He explained that international recognition is very important
for an emerging financial market like Indonesia. There would be
more foreign fund managers willing to deal with local dealers.

"In 1999, we will host another international event, the world
foreign exchange congress," said Turangan. The Foreign Exchange
Club Indonesia is an affiliate of Association of Cambiste
Internationale, the world foreign exchange club which has 13,000
members in 79 countries.

Turangan said the daily volume of trading in the Indonesian
financial market is still very low, only $2 billion, as compared
to $80 billion in Singapore.

He said the Indonesian financial market will grow in line with
the economic growth in the region. "By 2020, the world financial
centers will shift to this region."

Attraction

The Association's president, David W. Clark, said the region
has become increasingly attractive for international fund
managers due to deregulatory measures taken by governments in the
region.

"It is a fact that people are investing their money in this
region...because deregulations continue to allow more money to
flow from developed countries into these emerging markets," Clark
said.

Managing Director of Bank Indonesia (the central bank), Paul
Soetopo Tjokronegoro, said the greatest challenges of Indonesia
today in the financial sector do not come from economy, but from
human resources, whose skills and expertise are still lagging
behind.

"Traders must shoulder important responsibilities. They must
set an example. They must be bound by certain ethics. Their works
must be based on trust. In areas of integrity, they can never be
lax. Too often these ideals are sacrificed in the heat of
competition," Soetopo said in his written address.

Sharing Soetopo's view, Jeffrey said education has become a
very important factor in the development of Indonesia's financial
market.

"We are discussing with the Indonesian Institute of Bankers
and the central bank about the growing need for having a
professional qualification standard for bank dealers," Jeffrey
said. (rid)