SINGAPORE – The countries of Economic Cooperation Asia-Pacific (APEC) agreed on a number of steps in securing the economic recovery.
The deal was made considering the current condition of the recovery is still very fragile so feared would fail. “We see the direction of recovery, but still fragile. Profile countries growth has not quite equal, the unemployment rate also remains high,” a joint statement called the meeting of finance ministers of APEC (AFMM) to 16 in Singapore. The agreement will be followed up with some recovery precautions.
Of whom continued fiscal stimulus policies, structural reforms that constrain economic activity in one region, strengthening regional financial systems, and infrastructure financing. Security measures are expected to be done in the framework of free trade and open investment.
Of the fiscal stimulus policies, APEC agreed to forward it as an instrument of the acceleration of the recovery of the crisis. But the basis of the stimulus is directed in the levels measured, effective, and consolidated according to the capacity and pressure of the economic crisis experienced by each country. This agreement is based on the still high unemployment in some countries.
The relevant structural reforms, countries are to realize the APEC agreement cut the region’s economy constraints, including increased government support. APEC countries agreed that structural reforms could improve economic flexibility, production, and increased private sector participation. In addition, the agreement also tightening controls on the financial sector.
This is to prevent the emergence of a negative risk and lack of credit liquidity that could trigger a financial crisis continued. “But we also will continue to appreciate the innovation of financial systems to improve competitiveness and market efficiency,” he added. Related to this, Singapore Finance Minister Tharman Shanmugaratnam added, the policy focus needs to be taken APEC today is to restore and maintain demand.
Besides maintaining the continuity of high economic growth in post-crisis. On the same occasion, Minister of Finance Sri Mulyani Indrawati said, Asia should be more careful in the realization of fiscal spending aimed to keep consumption depan.Selain still running, the countries in this region can still have sufficient reserve funds (savings).
Sri Mulyani said, Asia careful attitude to realize the fiscal policy is needed given the global economic incentive is no longer supported by the export market consumption United States (U.S.), but by the economic activity undertaken Asia itself.
“Consumption is going down according to their country’s commitment to increase the consumption saving compared to a deficit given the amount of payments that they must forward,” he said. Another point that APEC ministers announced the agreement to impose interest rate based on market orientation. This points up the criticism of the currency exchange rate made China’s fixed.
RI-Singapore relations
Meanwhile, President Susilo Bambang Yudhoyono (SBY) and his entourage yesterday arrived in Singapore Changi Airport at 15:10 the time setempat.Kedatangan President was accompanied by First Lady Ani Yudhoyono and his entourage met Ambassador of Indonesia to Singapore Wardana. President Susilo Bambang Yudhoyono yesterday made a state visit to the President of Singapore SR Nathan.
After that the President led the Indonesian delegation to a meeting with dwipihak Singapore PM Lee Hsien Loong. The President also received the visit of Minister Mentor Lee Kuan Yew. PM Lee Hsien Loong revealed, Singapore and Indonesia will hold a meeting within the next six months to review bilateral relations. He said the relations between the two countries during the last five years is pretty good.
“Singapore and Indonesia work together in several areas, including combating terrorism, environmental challenges, and prevent the spread of infectious diseases,” said PM Lee, as quoted by Channel News Asia. On that occasion, President Yudhoyono also reaffirmed Singapore’s commitment to Indonesia with a reminder that both parties are interrelated both economically, culturally and socially.
On the other hand, the heads of state and government of APEC members began arriving yesterday in Singapore. The economic leaders from 21 APEC member countries will conduct high-level meeting in Singapore, 13? 15 November 2009.
