JAKARTA, May 7 (NNN-ANTARA) – Indonesian experts believe, economic growth, ASEAN centrality and de-dollarisation, are among the topics to be highlighted at the upcoming 42nd ASEAN Summit.
The ASEAN (Association of Southeast Asian Nations) summit and related meetings this year, are scheduled to be held from May 9 to 11, in Indonesia’s Labuan Bajo, a tourist town in East Nusa Tenggara province.
According to the Indonesian Foreign Ministry, eight meetings in plenary and retreat formats are scheduled to be held, seven of which will be chaired by Indonesian President, Joko Widodo.
Anggito Abimanyu, an economic expert from Gadjah Mada University, based in Yogyakarta, said, the Summit theme “ASEAN Matters: Epicentrum of Growth” shows that, the regional bloc has become more confident to be one of the world’s economic engine houses.
However, “ASEAN countries are still facing difficulties, like high inflation in their own economic conditions, particularly in this post-pandemic era. Therefore, it’s crucial for delegates to seek efficient measures, to create a stable and encouraging environment, so as to ensure regional economic growth and independence,” said Abimanyu.
As Southeast Asia’s largest economy, Indonesia shoulders responsibility in leading the economic mission for ASEAN, said Adhitya Wardhono, a researcher at University of Jember, in East Java province.
For Southeast Asian countries, many expect this Summit to strengthen regional economic capability and competitiveness in the global landscape, and push for a more inclusive digital transformation, said Wardhono.
ASEAN has made efforts to strengthen its central role in dealing with regional issues in recent years. Shofwan Al Banna Choiruzzad, executive secretary of the ASEAN Study Centre of Social and Political Sciences Faculty at the University of Indonesia, believes that the bloc should be able to translate the ASEAN Outlook on the Indo-Pacific (AOIP), “including concrete cooperation, which has an impact on the centrality of ASEAN in the Indo-Pacific.”
He highlighted post-pandemic recovery amid a global economic slowdown, geopolitical tension, and complex challenges from within the region as the major challenges facing ASEAN.
Humphrey Wangke, researcher from the political research centre, under the National Research and Innovation Agency (BRIN), said in a recent interview that, ASEAN should optimise its centrality, which has met real challenges from the establishment of trilateral AUKUS, comprising Australia, Britain and the United States, noting, “This has a potential threat to peace and stability in Southeast Asia.”
From Wangke’s perspective, ASEAN centrality should be directed to be ASEAN-oriented. That’s why member countries at the Summit are expected to show stronger unity and uphold decision-making mechanism, consistent with the ASEAN Charter, he said.
The Indonesian Employers Association (Apindo), sees that Indonesia could drive regional de-dollarisation through its 2023 ASEAN chairmanship.
“Various strategic policies on de-dollarisation must be discussed in a structured manner at the Summit,” said Ajib Hamdani, head of Apindo’s Economic Policy Analyst Committee, in an official statement released recently. In his opinion, de-dollarisation becomes a global phenomenon and to some extent, an economic orientation.
At the end of March, at ASEAN finance ministers and central bank governors meeting, agreed to reinforce the use of local currencies in the region and reduce reliance on major international currencies, for cross-border trade and investment, in an effort to ensure financial stability and avoid spillovers, such as high inflation from global crisis.
Improving regional payment interconnectivity is very likely to be mentioned at the Summit, including the expansion of cross-border payment instruments, said Abimanyu, expert from Gadjah Mada University.
During Indonesia’s Group of 20 (G20) presidency last year, a memorandum of understanding (MoU) was inked by the central banks of Indonesia, Malaysia, the Philippines, Singapore and Thailand, on developing an interoperable QR code-based payment system, based on local currency settlement (LCS).– NNN-ANTARA
