Indonesia hosted the 10th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) on August 25, 2023, in Jakarta. This chairmanship aims to navigate the post-COVID-19 global challenges by formulating collective policies addressing immediate concerns and continuing efforts to secure the region's long-term economic development.
The AFMGM monitors the progress of the Priority Economic Deliverables (PED) and addresses pressing current issues including economic recovery and stability (Recovery-Rebuilding), digital financial inclusion for growth (Digital Economy), and green finance promotion (Sustainability).
Amid global uncertainties, ASEAN's economy stands out with projected 4.5% growth, above global average. It manages interest rates and exchange rates well, demonstrating resilience to global economic shifts.
Key discussions in AFMGM revolve around maintaining strategic momentum amidst geopolitical tensions, debt pressures, and sustainability challenges. Strengthening macroeconomic policy coordination and risk management are also regional priorities.
The Indonesian Finance Minister, Sri Mulyani emphasized that, "The meeting stressed the importance of strengthening macroeconomic policy mix in ASEAN countries using all instruments to ensure regional economic stability. The significance of well-coordinated policies to address existing risks was highlighted."
To support long-term sustainable growth in ASEAN, the AFMGM highlighted efforts to enhance regional infrastructure financing, repositioning the ASEAN Infrastructure Fund (AIF) as the ASEAN Green Fund. Member countries agreed to align AIF financing with the ASEAN Taxonomy for Sustainable Finance, enhance AIF processes, and set out for recapitalization and optimalization of the existing capital.
AFMGM also highlighted promoting transition financing for low-carbon economic achievements in ASEAN. The meeting discussed ASEAN's Sustainable Finance Taxonomy Version 2, reflecting efforts for a fair, affordable, and orderly transition in the region.
ASEAN Finance Process 2023 enhances cross-sectoral collaboration, Financial-Health and Food Security initiatives. The Finance and Health Ministers addressed pandemic prevention, preparedness, and response funding gaps, mobilizing resources like the ASEAN COVID-19 Response Fund. To bolster food security, ASEAN aims to improve food policies, accessibility, SMEs' financial access, and trade facilities.
On monetary side, Bank Indonesia's Governor, Perry Warjiyo, highlighted ASEAN's integration commitment through Local Currency Transaction (LCT) and Regional Payment Connectivity (RPC) initiatives, endorsed at the May 2023 ASEAN Summit.
Other central bank-related topics include optimizing macroeconomic policies and creating an environment for growth, digitalization, structural reforms, and green finance. While discussion around the ASEAN Local Currency Transaction Framework and Regional Payment Connectivity expansion aims to bolster regional economic integration.
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