"Indonesia's role as leader in ASEAN 2023 is part of (the efforts) towards manifestation of an interconnected, inclusive, and prosperous 2025 ASEAN Economic Community (AEC) in 2025," Deputy Governor of BI Dody Budi Waluyo noted in Badung, Bali, on Tuesday.
Indonesia's leadership to improve the region's economy will be formulated in the 1st ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) scheduled to take place on March 28-31 in Bali.
Head of the Fiscal Policy Agency at the Finance Ministry Febrio Kacaribu noted that currently, the economy in the ASEAN is stable. Moreover, international organizations, such as the International Monetary Fund, World Bank, and Organization of Economic Co-operation and Development (OECD) consider ASEAN as the epicenter of growth amid all issues riddling 2023.
The recognition sparks the collective spirit to pursue a more stable and sustainable area.
At the AFMGM, BI and the Finance Ministry will host as many as 24 meetings that include main and supporting meetings highlighting "Discover Indonesia" as the theme. In particular, the discussions focus on the culture of Sulawesi and Kalimantan and exhibit the extent of national tourism.
Some of the main meetings are the ASEAN Finance Deputies Meeting (AFDM), ASEAN Central Bank Deputies Meeting (ACDM), ASEAN Finance and Central Bank Deputies Meeting (AFCDM), ASEAN Finance Ministers Meeting (AFMM), ASEAN Central Bank Governors Meeting (ACGM), and ASEAN Finance and Central Bank Governors Meeting (AFMGM).
During those meetings, the delegates will formulate collective and collaborative measures to meet the priorities economic deliverables (PEDs) categorized into three strategic thrusts: Recovery and Rebuilding: Rebuilding Regional Growth through Connected Markets and New Competitiveness; Digital Economy: Accelerating Inclusive Digital Economy Transformation and Participation; as well as Sustainability: Promoting Sustainable Economic Growth for a Resilient Future.
These are expected to improve ASEAN members' capability to address global economic issues as the epicentrum of growth through mutual cooperation.
For instance, recovery rebuilding by probing potential of implementation in ASEAN countries that can be molded to fit the characteristic of each nation, given that the economic issues that befell the region are similar from one country to another.
Another example is developing the Local Currency Transaction scheme, an extension of the Local Currency Settlement (LCS), as an effort to reduce dependency on the main currency.
In terms of the financial aspect, the swap arrangement bilateral initiative among some ASEAN countries, such as Indonesia, Malaysia, Singapore, and Thailand, functions as a strong regional financial backup in each country.
In terms of the payment system, regional payment connectivity will be consistently enhanced and expedited so as to support payment among countries.
In November 2022, Malaysia, Singapore, the Philippines, and Thailand signed a memorandum of understanding. In terms of sustainability, the ASEAN has developed a second version of ASEAN Taxonomy that is a system that groups economic activity in the region to see which ones can gain better access to green funding.
It is expected that the taxonomy can be approved and supported by ministers and Central Bank governors at the meeting in March 2023.
To adopt new renewable energy, a transition from fossil-based fuel is deemed necessary. Hence, Indonesia has conducted several transition activities, such as early retirement of coal power plants as well as Carbon Capture Utilization Storage (CCUS) that will be funded.
As for the digital economy, they are promoting further discussions on initiatives to improve ASEAN MSMEs' inclusion and financial literacy.
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Translator: Agatha Olivia V, Mecca Yumna
Editor: Sri Haryati
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