ASEAN agrees to promote regional financial integration

Jakarta, InfoPublik – ASEAN finance ministers and central bank governors agreed to promote financial integration in the region as an effort to establish the ASEAN Economic Community (AEC) by 2025. Therefore, the ASEAN strategic action plan will be implemented effectively to encourage a stable, integrated, and inclusive financial system in the region.

This was stated by the Bank Indonesia Governor Agus D.W. Martowardojo in a press release on Sunday (4/9).

In the 3rd ASEAN Finance Ministers and Central Bank Governors Meeting (AFGM) held in Cebu, Philippines on Apr. 7—8, 2017, all of ASEAN central bank governors and finance ministers had agreed on the use of Key Performance Indicators (KPIs) as a tool to evaluate the regional finance integration agenda as set out in  its strategic action plan 2025.

"With the use of KPIs, we hope that the measurement on financial integration’s initiative performance is not only based on the outputs, but also on how much it benefits the economy as a whole. KPIs are expected to strengthen the achievements of ASEAN vision 2025 in the financial sector," He said.

He also added that the meeting was attended by international institutions such as the Asian Development Bank (ADB), the World Bank, the International Monetary Fund (IMF), and the ASEAN+3 Macroeconomic Research Office (AMRO), as ASEAN partners.

These institutions were present for exchanging views on global economy’s uncertain current situation, whether as a result of protectionist tendencies and geopolitical risk or changes in monetary policy stances especially in developed countries.

"In order to face those conditions, the ASEAN finance ministers and central bank governors committed to increase a more closely trade and investment among ASEAN countries," he said.

Furthermore, he added that a strong coordination and commitment from all ASEAN countries and other relevant institutions is expected to support the achievement of a stable and sustainable financial integration, so that the benefits of integration can be perceived equally by all ASEAN peoples. (Translator: Rina Alexandra)