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Jakarta Post

BI looks to ASEAN banking integration framework

  • The Jakarta Post

    The Jakarta Post

Kuta, Bali   /   Wed, July 16, 2014   /  05:15 pm

Bank Indonesia (BI) says it is prioritizing the finalization of a banking integration framework for ASEAN member countries, targeted for completion this year.

'€œThe ASEAN banking integration framework is a national issue. It'€™s a priority,'€ BI governor Agus Martowardojo said as quoted by Antara news agency in Kuta, Bali, on Wednesday.

He said the central bank was striving to complete the framework, as the ASEAN Economic Community (AEC) was set to take effect in 2015.

Agus said the framework could not be finalized as it had not yet received official support from BI.

'€œThis was because we had to first ensure conditions were conducive, such as how ASEAN monetary and banking authorities could pay respect to reciprocal principles, market-access principles and national '€˜treatment'€™,'€ said Agus, adding that ASEAN member countries could understand such circumstances.

He added that with ASEAN banking integration, the domestic banking sector had a chance to reach the regional level.

'€œIndonesia warmly welcomes ASEAN investors wanting to enter our market. It also wants its efforts to reach the international level to be accepted by ASEAN member countries. This will be reflected in the ASEAN banking network,'€ said Agus.

It was reported earlier that a number of ASEAN countries, such as Malaysia, had carried out banking consolidation ahead of the 2015 AEC.

Commenting on this, Agus said the central bank'€™s finalization of the framework would determine the direction of Indonesian banking at the regional level.

'€œOnce the network is agreed, Malaysia'€™s readiness will be balanced by Indonesian banks, which will expand their markets to ASEAN,'€ he said. (ebf)


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