Economy needs financial stability to grow

Economy needs financial stability to grow

Firmanzah. (ANTARA/Widodo S. Jusuf)

The economic growth could not be developed without financial stability."
Astana, Kazakhstan (ANTARA News) - An Indonesian presidential staff hoped that the US would be cautious in carrying out its plan to reduce its financial stimulus so that it would not disturb the global economic growth.

Indonesian Presidential Special Staff for Economic Affairs Firmanzah said on the sidelines of President Susilo Bambang Yudhoyono`s visit here on Monday that it would be difficult to maintain economic growth if the world`s financial stability was not maintained.

"The economic growth could not be developed without financial stability," Firmanzah said.

He added that impact of the deprecation of local currencies against the US dollar and the fall of composite index was not only felt by Indonesia but also by other countries such as India, Brazil, China, and South Africa.

Firmanzah hoped the matter would be part of the agenda at the G20 summit in Russia. Stability of the world`s financial market is one of the objectives of the G20 struggle.

"This concerns how we can create good quality economic growth through the creation of jobs and investment," he said.

He added that it is the authority of the United States to decide its financial stimulus policy, yet all parties should give attention to the world`s financial stability.

"We need communication in applying the exit strategy during the transitional period. We need transparency and coordination with other countries," he said.

He added that President Yudhoyono, in the G20 meeting, would express the need for a joint solution to maintain the world`s financial stability.

Yudhoyono said earlier that Indonesia had the interest in the discussion of global economy in the G20 summit in Russia in the first week of September 2013.

"Whatever we do at home, including the package of economic policies we have adopted to overcome economic pressures will not be immune to what is taking place in the world," said the President in Jakarta on Sunday.

The President added that he would take the G20 as an opportunity to understand what was happening in the world and to understand world leaders views over current economic polices.

He said the G20 meeting in Russia later this week would not be less important than the previous first and second G20 summits in Washington in 2008 and London in 2009.