Minister of Finance and Governors of ASEAN Banks Agree to Maintain Financial Stability and Integration
Jakarta – A shared commitment to maintaining financial stability and advancing financial integration was the main message conveyed at the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM).
The Minister of Finance (Minister of Finance) Sri Mulyani, in a meeting held in Nusa Dua, Bali, on 28-31 March 2023, explained that this agreement was reached because she saw uncertain global economic prospects, so that it could have an impact on the momentum of economic growth in the ASEAN region . The Minister of Finance also said that ASEAN has an important and strategic role as the center of world growth.
“We believe ASEAN has a strong commitment to becoming a region with strong, inclusive and sustainable economic growth. To ensure that this success will be sustainable, we must strengthen ASEAN’s capacity to face various challenges that have been experienced in the past,” said Sri Mulyani.
Sri Mulyani added, various efforts to deal with these challenges have been reflected in the theme of Indonesia’s Chairmanship, namely ASEAN Matters: Epicentrum of Growth. Indonesia wants to make ASEAN a center for regional and world economic growth. In addition, ASEAN is expected to always be a bright spot in the world economy.
“With this theme, Indonesia hopes that ASEAN will remain relevant, strategic and important to the world, or in other words ASEAN Matters. As well as being a bright spot for the world economy,” he said.
On the same occasion, the Governor of Bank Indonesia (BI) Perry Warjiyo stated that, to respond to ASEAN’s challenges, members must work collaboratively and cooperatively.
“As Governor of the Central Bank and Minister of Finance, we must draw on our collective expertise and experience to develop policies and measures that promote economic resilience, sustainability and inclusion,” said Perry.
According to him, the action includes three agendas. First, have a good understanding of the dynamics of macroeconomic stability. Second, take advantage of the global agenda in the field of cross-border payments. And third, the current dynamics of global financial markets are heavily influenced by the cycle of rapid interest rate hikes by the US Federal Reserve.
“There are three agendas. First, have a good understanding of the dynamics of macroeconomic stability. Second, take advantage of the global agenda in the field of cross-border payments. then, the current dynamics of global financial markets are heavily influenced by the cycle of rapid interest rate hikes by the Central Bank (US),” he added.
The AFMGM meeting was attended by ASEAN Ministers of Finance and Central Bank Governors from Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam, as well as representatives from six international organizations.
The six international organization representatives are the Asian Development Bank (ADB), ASEAN+3 Macroeconomic Research Office (AMRO), International Monetary Fund (IMF), Financial Supervisory Board (FSB), Bank for International Settlements (BIS) and the World Bank.
The results of the 1st AFMGM meeting will be reported at the 42nd ASEAN Summit, 9-11 May 2023 in Labuan Bajo, East Nusa Tenggara. Then it will be continued with the 2nd AFMGM in Jakarta, in August 2023. []
