Economic Resilience Is More Solid, ASEAN Is Increasingly Like A Epicentrum Of Growth

Photo: Doc. Bank Indonesia

JAKARTA Almost this week Indonesia has held a series of meetings for the second ASEAN Finance Ministers and Central Bank Governments Meeting (AFMGM) in Jakarta.

Indonesia, which holds the Chairship of ASEAN 2023, feels the need to increase understanding among members to face various economic, social and political challenges that have resulted in delaying economic recovery after the COVID-19 pandemic.

Head of the Communications Department of Bank Indonesia (BI) Erwin Haryono said that it must be able to synergize joint policies and strategies that are able to answer these challenges.

"This effort also continues steps to improve fundamental issues that have an impact on the progress of the long-term region," he said in a written statement quoted on Sunday, August 27.

According to Erwin, ASEAN has unique characteristics because it is considered capable of surviving global pressure which is still filled with continued uncertainty.

"ASEAN economic growth continues to be a bright and rare spot in the world economy," he said.

Erwin explained that this assumption is based on the ASEAN economy which is predicted to grow 4.5 percent this year, higher than global growth. Meanwhile, inflation is expected to remain high in several ASEAN member countries, but relatively lower than in other regions.

ASEAN has been able to maintain interest rate and exchange rate depreciation in the region amid increasing global interest rates. This economic fundamental shows ASEAN's resilience to global shocks and consistency in regional economic development to become the center of growth or epicentrum of growth," he stressed.

Erwin added that this meeting was a follow-up meeting aimed at monitoring and updating the development of various achievements in the Priority Economic Deliverables (PED) and to discuss the latest issues that are of major concern to ASEAN member countries.

Meanwhile, the three PEDs under the framework of cooperation in the financial sector consist of encouraging recovery and ensuring financial and economic stability and resilience (recovery-rebuilding). Then, advancing payment connectivity, encouraging literacy, and digital financial inclusion to support inclusive economic growth (digital economy).

As well as promoting transition financing to support sustainable finance and a green economy.