Wednesday, 19 June 2019 | 08:17 WIB

ASEAN Plus Three Countries Should be Less Dependent on One Currency Only

ASEAN Plus Three Countries Should be Less Dependent on One Currency Only (setkab)

JAKARTA, NNC - At present, all countries face unstable global economic conditions, as well as increasing protectionist and anti-globalization sentiments. This is very worrying, because it can damage the multilateral trading system, disrupt regional and national economic growth, and result in exchange rate fluctuations.

This statement was conveyed by Indonesia President Joko 'Jokowi' Widodo at the 21st Summit of the ASEAN Plus Three (APT) at the Suntec Convention Center, Singapore, on Thursday (11/15).

"The global economic situation has serious consequences for countries in the region. "Large capital outflows result in exchange rate fluctuations," President Jokowi said in a written statement.

Therefore, to maintain economic resilience, President Jokowi reminded that the regional mechanism must be ensured to run well, so that the Chiang Mai Initiative Multilateralisation (CMIM) must be strengthened.

In addition, concrete action must be taken. First, increase contributions to CMIM, so that sufficient assistance funds must be ready to help members in need.

Second, the operationalization of CMIM must be more implementative. CMIM must be responsive to help members affected by the financial crisis.

"Third, I propose that we assign the Minister of Finance and the Governor of the Central Bank to discuss the doubling of bailout funds," President Jokowi said.

In the forum, President Jokowi also reminded to begin reducing regional dependence on one currency, through effective implementation of currency swap cooperation, and increasing the use of local currencies in the payment of cross-country trade transactions.

"The APT cooperation must be part of a global solution," said Jokowi.

For this reason, Jokowi said that the APT needed to collaborate more closely to create a stable and prosperous East and Southeast Asia.

In addition, President Jokowi said that the peace and prosperity of our region cannot be denied by APT.

"ASEAN Plus Three cooperation is very important," said the President.

In addition to being attended by heads of state/heads of the ASEAN government, the ASEAN Plus Three Summit was also attended by PRC PM Li Keqiang, Japanese PM Shinzo Abe, and South Korean President Moon Jae-in.