This Is BI's Priority Agenda In The Central Bank Meeting In ASEAN Tomorrow

BI International Department Director Iss Savitri Hafid (Photo: Andry Winanto/VOI)

JAKARTA Bank Indonesia (BI) together with the Ministry of Finance (Kemenkeu) host at the ASEAN Finance Ministers and Central Bank Government's Meeting (AFMGM) in Jakarta on August 22-25.

On this agenda, BI will specifically focus on a number of strategic issues to central banks in the region. First, mainstreaming about the policy mix or policy mix.

The policy mix is important because so far many are of the view that the central bank has the main instrument being the policy interest rate. But in practice, with the global economy changing rapidly, we need more than one tool concept. This understanding we are trying to encourage between ASEAN countries," said BI Department Director Iss Savitri Hafid in Jakarta, Monday, August 21.

Second, Bank Indonesia will further strengthen the issue of local currency transactions targeting an increase in retail transactions in Southeast Asia.

"Then the third is how to expand financial inclusion in society. This is useful to support entrepreneurs in the small medium entertainment (SMEs/MSMEs) segment in expanding business opportunities," he said.

Then the fourth is to build an increase in regional payments in the ASEAN Region.

This makes transaction costs cheaper.

To note, this week's AFMGM event is the second time it has been held in the Chairmanship of Indonesia in ASEAN. Previously, the first meeting was held in Bali at the end of March 2023.

Meanwhile, it is usually held only once a year. The initiative to organize the agenda twice is a response to global dynamics that is still filled with continuing uncertainty.