BI Boss Emphasizes 5 Priority Agendas During AFMGM 2023

BI Governor Perry Warjiyo (Photo: dock. Antara)

JAKARTA - Bank Indonesia emphasized their five priority agendas during the Meeting of the Minister of Finance and the Governor of the Central Bank of the Association of Southeast Asian Nations (AFMGM) 2023 which was held during August 22-25, 2023 in Jakarta.

"During this AFMGM, we consider five priority agendas," said Bank Indonesia (BI) Governor Perry Warjiyo quoting Antara.

The five priorities include the first importance of utilizing the mix of macroeconomic policies. The mix of macroeconomic policies is basically to ensure the recovery and stability of Indonesia's economy, which is further expected to be adapted by other ASEAN member countries.

The policy mix not only focuses on interest rate policies but also on exchange rate stability and capital flow.

The second priority of Bank Indonesia is the expansion of the framework related to local currency transactions in the ASEAN area.

Perry said that ASEAN leaders had previously agreed to strengthen regional payment connectivity (RPC) and encourage the use of local currency transactions (LCT) at the ASEAN summit in May 2023.

As a follow-up, the AFMGM meeting which was held today supported the High-Level Principles of the ASEAN Local Currency Transaction Framework.

These principles will form the basis for establishing and implementing the framework of the ASEAN LCT as well as fostering collaboration among the financial sector authorities.

He mentioned that the continuation of the expansion of regional payment connectivity (RPC) in the ASEAN area was the third priority during the 2023 AFMGM meeting.

This commitment is believed to help facilitate smooth and safe cross-border payments.

The fourth priority is strengthening digital financial inclusion and literacy. ASEAN has completed implementation guidelines to strengthen digital financial literacy in the region.

The guidelines are aimed at providing action-oriented guidance for policymakers in ASEAN and will complement existing guidelines.

The fifth priority is to review the Committee of Work (WC) mandate. Indonesia's leadership in ASEAN has started deliberations to strengthen ASEAN's financial processes in order to allow ASEAN to respond to the dynamic global economic landscape.

Related to this, Indonesia supports the establishment of the Working Committee Mandate Review Task Force.