ASEAN bank cooperation

The agreement reached among the central banks of five ASEAN countries concerning swap transactions underscores their commitment to come to each other's assistance in case problems occur. This is an old commitment, but it has become highly relevant after the current monetary disturbances in the region.

But this agreement in the monetary field needs to be bolstered by efforts to bring greater overall order to the economies of the countries involved. Inflationary pressures and deficits in their current accounts will affect those countries' capital flow and exert pressure on their respective currencies. The agreement, therefore, should ideally lead to the attainment of a balance that will enable each country involved to keep pace with others.

In the case of Indonesia, for example, our dependence on Singapore's services sector is still quite considerable, which affects our efficiency in international trade. Our deficit in this sector is still formidable and is showing no signs of abating. The government does have an agenda for cooperation in the framework of ASEAN, but any discernible vigor to indicate that we are ready to anticipate a future of greater freedom and openness in this region, seems to be missing. A framework for systematic and coordinated effort by the government and private sector is a basic necessity and is important to avoid confusion and even misunderstanding.

What is needed from the government is a clear-cut policy and an openness in cooperating with the private sector to anticipate greater competition in this region. Our aspiration, after all, is not merely to survive, but to win this competition.

-- Bisnis Indonesia, Jakarta