Governor Felipe M. Medalla led the Bangko Sentral ng Pilipinas (BSP) in the 9th ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) and Related Meetings held between March 28 to 31 this year in Bali, Indonesia.
ASEAN ministers and CB governors at this year’s AFMGM in Indonesia (IMAGE CREDIT: bsp.gov.ph)
The BSP joined other ASEAN central banks in supporting the priority economic deliverables under Indonesia’s ASEAN 2023 Chairmanship.
With the theme “ASEAN Matters: Epicentrum of Growth,” the meetings discussed initiatives to foster recovery and economic and financial stability; advance payment connectivity; promote digital finance literacy and inclusion; and promote transition finance to support a sustainable and green economy.
The BSP expressed support for developing a framework that will build and enhance regional ties and increase local currency transactions; further pursuing capital account liberalization; exploring banking integration initiatives that go beyond physical bank presence; and pursuing multilateral cross-border payment linkages.
According to Medalla, “The ASEAN should look beyond the physical presence of banks and aim for other solutions to support greater ASEAN banking integration.”
“A fast payment system where each country is being linked will also help the common person, and the common person – the everyday person will see ASEAN as a single economy,” he added.
Issues and challenges discussed at the ASEAN 2023
Indonesia, as one of the ASEAN member countries, plays an important role in leading the initiative for social and health development in the region. However, it also faces various issues and challenges that need to be overcome to achieve this goal successfully.
Some of the challenges Indonesia now faces in leading the initiative for the development of social and health services that were discussed at the ASEAN 2023 event include:
- The difference in the level of development among ASEAN member countries. ASEAN countries have significant differences in terms of economic development, as well as social and health development. This can complicate Indonesia’s efforts in leading the initiative for social and health development in ASEAN because Indonesia must accommodate the interests and needs of other member countries.
- The ongoing COVID-19 pandemic. The COVID-19 pandemic has had a significant impact on social and health development worldwide, including in ASEAN. Indonesia, as a country with a high number of COVID-19 cases, must handle this pandemic well to continue social and health development efforts in ASEAN.
- The limited budget for social and health development. Although Indonesia has the largest economy in the ASEAN, the budget for social and health development is still limited. This could complicate Indonesia’s efforts in leading the initiative for social and health development in ASEAN because Indonesia must allocate its limited budget effectively to achieve this goal.
- The issue of government social aid missing the target. This is a complex problem that has long been a concern for many parties. Factors that cause government social aid to missing its target include the government’s limited data on the number and conditions of people in the region, making it difficult to determine the target recipients as well as the rampant abuse of power by those responsible for distributing social aid. This issue needs attention from Indonesia in leading the initiative for social and health development in ASEAN 2023.
- The coordination among member countries still needs improvement. Good coordination among member countries is essential in leading the initiative for social and health development in ASEAN. However, coordination among member countries still needs improvement to ensure that social and health development efforts can progress smoothly.
To overcome these problems, integrated efforts from all parties are needed.
The Indonesian government needs to increase investment in the health and education sectors as well as increase public awareness about the importance of obtaining quality health and education services.
In addition, it requires active community involvement and community commitment to various health and education social assistance services provided by the government so that the nation’s goal of creating inclusive social, health, and educational development for all levels of society and creating prosperity for all Indonesian people can be realized.