Minister Of Finance And Governors Of ASEAN+3 Central Banks Strengthen Cooperation In Facing Global Risks

JAKARTA - The Minister of Finance and the Governors of the ASEAN+3 Central Banks (ASEAN, Japan, China, and South Korea) agreed to synergize regional policies in facing current global risks and challenges.

In the Joint Ministerial Statement, ASEAN+3 realized that financial cooperation has an important role in supporting the regional economy and agreed to further deepen collaboration.

Citing information released by the Indonesian Ministry of Finance, it is stated that the ASEAN+3 economy is considered to remain resilient in facing the challenges posed by the COVID-19 pandemic.

"Since 2021, ASEAN+3 has focused on increasing vaccinations to protect the community and has adopted measures to minimize the impact on the economy and support recovery," said Finance Minister Sri Mulyani in an official statement, Friday, May 13.

However, the Minister of Finance said that there are several challenges that need to be watched out for, such as the normalization of monetary policy in the country, supply chain disruptions, and rising food and energy prices which are exacerbated by the conflict between Russia and Ukraine.

"This could pose a downside risk to the prospects for trade, investment, growth and inflation in the region," he stressed.

Furthermore, the state treasurer also explained that the increase in inflation this year reflected the effects of the low-base scenario, the abolition of energy subsidies and several important products, as well as constraints from the supply side that pushed prices up for raw materials, energy, transportation, and food. He said the outlook for inflation depends on developments in global commodity prices and the strength of economic recovery.

"For this reason, Indonesia encourages policies to protect vulnerable groups, protect and maintain economic momentum, and restore the strength of fiscal instruments," he said.

The Minister of Finance also appreciated ASEAN+3's efforts in developing Future Initiatives to address issues related to infrastructure financing, macro instruments, disaster insurance, fintech, digital finance, and climate change.

“This effort will not be easy and cheap. Therefore, cooperation in designing effective and credible mechanisms, especially for transition finance, is critical. We welcome the initiative from ASEAN+3, and we will also participate with other international organizations, such as the ADB, and through bilateral cooperation," he said.

For information, the 25th meeting of the Ministers of Finance and Central Bank Governors of ASEAN+3 was held virtually on May 12, led by Cambodia and China.