ASEAN Countries Strengthen Commitment To Maintain Economic Stability In The Region

Illustration (Photo: Doc. Ministry of Foreign Affairs)

JAKARTA - The Ministers of Finance and the Governor of the Central Bank of ASEAN reaffirmed their joint commitment to maintaining financial stability and advancing financial integration towards uncertain economic prospects (uncertain) that could have an impact on the momentum of economic growth in the region.

Those are the main points of the meeting of the Minister of Finance and the Governor of the latest ASEAN Central Bank (AFMGM) held in Bali this week.

"We believe that ASEAN has a goal to become an area with strong, inclusive, and sustainable economic growth," said Finance Minister (Menkeu) Sri Mulyani, quoted by the Editor on Sunday, April 2.

According to the Minister of Finance, to ensure that this success will be sustainable, it is necessary to strengthen capacity in facing various challenges for the next twenty years.

"In this year's ASEAN chairmanship, Indonesia took the Epicentrum of Growth theme which reflects that Indonesia wants to make ASEAN the center of regional and world economic growth," he said.

On the same occasion, the Governor of Bank Indonesia (BI) Perry Warjiyo revealed that in order to realize shared goals, every country needs a good understanding of the dynamics of global and regional macroeconomic and financial stability and is able to formulate an optimal policy mix.

"With the current dynamics of global financial markets being heavily influenced by the fast upward cycle of interest rates by major central banks, it is more important for emerging markets to protect the external sector from unwanted consequences," he said.

To note, in line with the Epicentrum of Growth theme, ASEAN collectively has high economic growth and macroeconomic stability. For example, the ASEAN-5 economy grew by 5.3 percent last year, and collectively estimated to be 4.6 percent this year and increased to 5.6 percent in 2024.

This growth will, among other things, continue to be supported by strong consumption, trade, and investment, as well as open trade and investment in other countries.

Nevertheless, ASEAN and globally still face a number of challenges, including the impact of the global economy's spillover, high interest rates, high inflation, and global financial uncertainty.

Meanwhile, the results of the first AFMGM meeting will be reported to the 42nd ASEAN Summit which will be held in May 2023 in Labuan Bajo, East Nusa Tenggara.