Integrated Finance in ASEAN
Friday, 07 April, 2006 | 17:12 WIB

TEMPO Interactive, Jakarta:ASEAN members agree to increase integration in finance, especially in relation to capital markets, insurance, and retirement funds.

The Finance Minister, Sri Mulyani Indrawati said the agreement was reached in the ASEAN finance ministerial meeting in Cambodia, April 3-4. For the follow-up, a working group is to be formed to discuss and prepare the meeting with the World Bank and the International Monetary Fund (IMF) in Singapore this September.

Before the meeting with the World Bank and IMF, the finance ministers planned to ‘go on the road’ to Hong Kong. “We want to convey that ASEAN has entered a new momentum,” Sri Mulyani told the press yesterday.

Moreover, she said, there would also be continuing cooperation in customs, and money laundering. Cautious policies will be taken to maintain the improving momentum. At the same time, the finance sector will receive more attention in order to facilitate work opportunities and growth.

Sri Mulyani added that several matters have been carried out regarding integrated finance among all ASEAN members. For example there is cooperation in the capital market which generates the ASEAN asset club in the capital market comprising a hundred companies that participate in the international capital market. However, there are only a few Indonesian companies. There is also cooperation in regulating to encourage the capital market in ASEAN.

The meeting also discussed the possibility of the advantage of savings in Asia, which amounts to a great deal. She gave an example, the interest from savings could be used to fund infrastructure projects in Asia. As a result, the funds are not only used to buy U.S. bills or treasury notes. “This is also aimed at lessening global imbalance,” she said.

RETNO SULISTYOWATI