Muslim Nations Seek Closer Ties in Economic Crisis

By ZAKKI HAKIM / AP WRITER

JAKARTA — Muslim nations need to forge closer ties to meet challenges posed by the global financial crisis, Indonesia's president said Monday at the opening of the annual World Islamic Economic Forum in Jakarta.

Susilo Bambang Yudhoyono proposed creating a Muslim support fund, noting that Islamic nations account for nearly half of the 50 least-developed and heavily indebted countries in the world.

He also said oil-exporting countries should help cushion the economic blow for developing countries by investing more in their agricultural sectors.

"Muslim countries with vast reserves but without a real agricultural sector can come to the rescue," he told the delegates. "And since they are food importers, they will also be securing their own food supply needs."

Yudhoyono said the financial crisis also opened up new opportunities for Islamic banks in oil-exporting countries, noting that they have not been as severely affected as their Western counterparts because they did not invest in "toxic" assets or in leveraged funds.

Yudhoyono also touched on climate change, energy security and food shortages.

This is the fifth meeting of the World Islamic Economic Forum. This year nearly 1,600 participants from 36 countries — including the leaders of Malaysia and Morocco, as well as senior government ministers and corporate leaders — are attending the three-day event.