"ASEAN will form a guarantor institution of joint bond market and Indonesia will support it," Finance Minister Agus Martowardojo said at the World Economic Forum on East Asia (WEF-EA) here on Sunday.
Agus said ASEAN+3 (Japan, South Korea, and China) was at present finalizing the plan to optimize the ASEAN bond market.
According to him, the ASEAN+3 has earlier raised a total fund of US$120 billion in ASEAN Swap Currency framework.
Meanwhile, Michael Buchanan, Chief Asia-Pacific economist at Goldman Sach, suggested that the ASEAN bond market maintained local currency of each member country.
Buchanan said that based on his experience in various regions, bond market with joint currency was not effective enough.
"The bond market will run effective if it is with local currency," Buchanan said.
According to Group Chief Executive and executive Director of HSBC Holdings plc, Stuart T Gulliver, the management of joint commercial papers would create greater opportunity.
"I don`t agree with capital control, but I agree with the management of commercial papers because we have to create greater opportunity," Gulliver said.
(Uu.O001/A014)
Editor: Priyambodo RH
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