The Association of Southeast Asian Nations (ASEAN) has been at the forefront of economic cooperation and integration in the Southeast Asia region. This was recently highlighted at the ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) 2023, where the bloc’s members committed to maintaining economic stability and deepening regional connectivity. With the current global economic uncertainty caused by the COVID-19 pandemic, this commitment by ASEAN members is crucial in strengthening the region’s resilience and ensuring sustained economic growth. In this article, we will dive deeper into the discussions at AFMGM 2023 and the measures taken by ASEAN members to maintain economic stability.
On March 31st, 2023, the Ministry of Finance and Bank Indonesia hosted the ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) in Nusa Dua, Bali. The meeting was attended by Finance Ministers and Central Bank Governors from nine ASEAN countries, along with representatives from six international organizations, including the Asian Development Bank, ASEAN+3 Macroeconomic Research Office, International Monetary Fund, Financial Stability Board, Bank for International Settlement, and World Bank. The key takeaway from the meeting was the joint commitment of ASEAN Finance Ministers and Central Bank Governors to maintaining financial stability and advancing financial integration, even amid the uncertain economic outlook that could impact economic growth momentum in the ASEAN region.
During the meeting, ASEAN Finance Ministers and Central Bank Governors reiterated their belief that ASEAN must aim to be a region with robust, inclusive, and sustainable economic growth. According to the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, economic growth has and will always be the story of ASEAN. The ASEAN-5 economies grew by 5.3% last year and are collectively forecasted to grow by 4.6% this year, with an increase to 5.6% in 2024. ASEAN collectively has a high economic growth and macroeconomic stability, offering more promising prospects compared to a bleaker global outlook.
Members at the AFMGM welcomed the theme of Indonesia’s ASEAN Chairmanship in 2023, “ASEAN Matters: Epicentrum of Growth,” which has three strategic thrusts, namely, (i) recovery and rebuilding, (ii) the digital economy, and (iii) sustainability. They underlined the importance of strong collaboration and cooperation to contain lingering risks that may pose a threat to the regional economy. Members welcomed Indonesia’s 2023 Priority Economic Deliverables (PEDs), including pandemic preparedness, infrastructure finance, international taxation, customs cooperation, digital financial inclusion for micro, small and medium-sized enterprises (MSMEs), and sustainable finance.
The AFMGM held thirteen high-level meetings with Central Bank Governors and Finance Ministers, as well as Deputies. The outcomes of the 1st AFMGM discussion will be reported to the 42nd ASEAN Summit in May 2023 in Labuan Bajo. The ASEAN Finance Ministers and Central Bank Governors committed to ensuring that this will be continuous and they must strengthen ASEAN’s capacity to respond to the previous challenges, but most importantly, the current and new challenges that they are all seeing today, and the expected challenges in the next twenty years. ASEAN remains a bright spot in the global economy, and it offers more promising prospects compared to a bleaker global outlook.
Finally, a 2nd AFMGM will be held in August 2023, in Jakarta. The Ministry of Finance of the Republic of Indonesia is optimistic that cooperation and collaboration among ASEAN member countries will remain strong, and that ASEAN’s economic growth momentum will continue amidst the current uncertain economic outlook. The key to this continued growth will be maintaining financial stability and advancing financial integration, ensuring ASEAN’s capacity to respond to current and future challenges, while promoting sustainable growth for the region.
