ASEAN bank cooperation

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