Overcome the crisis, Prime Minister of Thailand Abhisit Vejjajiva (middle) together with the ASEAN +3 finance ministers, including Finance Minister Sri Mulyani Indrawati (far right), on the sidelines of the meeting in Phuket, Thailand, yesterday. ASEAN +3 plan to establish an emergency reserve fund of USD120 billion.

Phuket (Sindo) - Nations of the Southeast Asia with China, Japan and South Korea (ASEAN +3) agreed the increase to the emergency reserve fund to be USD120 billion from the previous USD80 billion.

Increased funding as a form of anticipation of the possibility of ASEAN +3 financial crisis spread globally. The ASEAN +3 finance ministers said, the preparation of the fund aims to ensure regional stability and encourage confidence in the market.

"This agreement will be the finalization of the next annual meeting, May future, which will be held in Bali, Indonesia," the official statement of the ASEAN +3 finance ministers after a meeting in Phuket, Thailand, yesterday.

After the economic crisis of 1997-1998, ASEAN with China, Japan and South Korea, agreed scheme established bilateral exchange of currencies (currency swaps) in order to strengthen foreign exchange reserves in each country. This step is known as the Chiang Mai Initiative. ASEAN +3 want to improve the bilateral agreement of a multilateral.

Initially, ASEAN +3 plan establish multilateral funds worth USD80 billion. However, since the end of several years ago to create a discourse of possibility that the addition of funds to be USD120 billion.

The ministers who attended the meeting in Phuket yesterday came from Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand, Singapore, and Vietnam. Japanese Finance Minister Kaoru Yosano can not attend, was represented only ministries of finance secretary.

Prime Minister of Thailand Abhisit Vejjajiva, said emergency reserve fund will function as a buffer countries in the ASEAN +3 crisis. During a visit to Indonesia last week, Abhisit said, the ASEAN countries that depend on export fears of protectionist countries of export.

"I hope the meeting of ASEAN countries will discuss the proposal at a meeting next sunday so we are ready to face this crisis. We will not be tempted to take advantage of all protectionist, "he added. Secretary to the Minister of Finance Thailand Suparut Kawatkul said, his side will see the increased detail emergency reserve fund.

"I hope there will be progress before the meeting formulated the ASEAN +3 finance ministers in Bali in May on the future," he said. Thailand's Finance Minister Korn Chatikavanij states, meeting in Phuket will give a strong signal to the world that ASEAN is committed in a slowing economy.

"The finance ministers in all countries need to find a way to give a fundamental and effective solution as a step that is not the condition is stabilized," he said. ASEAN Secretary General Surin Pitsuwan said, long discussion on the regional area will find a way to help as a result of the worst global economic crisis that befall Asia.

"This is one of the mechanism. Although will not replace the role of the International Monetary Fund (International Monetary Fund / IMF), it will be an alternative in Asia, "Surin said.

"This will make the most significant support from ASEAN," he said. Surin added, the initial meeting was held yesterday morning local time considered as something positive because all the representatives of finance ministries of the ASEAN agreed principles increase the emergency reserve fund proposed. According to him, ASEAN countries will contribute 20% of the total funding that is agreed.

Meanwhile, three other countries, namely China, Japan and South Korea, will provide 80% of the total contribution of USD120 billion. Meanwhile, South Korea Finance Minister Yoon Jeung-Hyun says the global financial crisis this time and require strong cooperation in ASEAN.

He believes, multilateral meeting this time was the main example in the business collaboration between the countries. "Unfortunately our country is currently faced with major challenges due to weakening global economy and financial turbulensi," said Jeung-Hyun.

G-20 meeting Degree

The leaders of countries G-20 also hold a meeting yesterday to discuss efforts to overcome the global financial crisis. After the meeting, they stated that the International Monetary Fund (IMF) funds must have at least USD500 billion expansion to anticipate the impact of global financial crisis in the future.

"We decided that the international financial institutions must have the funds of which allows them not only can handle the crisis, but also able to prevent the crisis," said British Prime Minister Gordon Brown on the meeting G-20 leaders in Berlin, Germany, yesterday.

He added that the occurrence of economic crisis in eastern Europe could threaten Western Europe. This is shown with so many problems need IMF support. German chancellor Angela Merkel said the G-20 leaders agreed to support the proposal to redouble the availability of IMF funds.

"IMF should be in a position to help its members are flexible and fast if they have difficulties," the statement together with the sound of G-20.Pada meeting in Berlin yesterday, G-20 leaders also agreed the need for rules in the global financial market system.

Previous IMF has several times got a warning from the leaders of developed countries in order to increase capacity to help members, especially during the economic crisis. Years ago Gordon Brown was doing road show to Gulf countries and urge that the oil-rich countries are willing to contribute to the IMF. However, until now, Japan's new willingness of the IMF to provide funds worth USD100 billion. (AFP / Rtr / Yanto kusdiantono)