Indonesia, ASEAN+3 agree to strengthen financial market

Jakarta (ANTARA News) - Indonesia and other ASEAN member countries, plus Japan, South Korea and China, have agreed to cooperate to strengthen the financial market.

The agreement came as a result of the confabulations between central bank chiefs and finance ministers of the countries involved in Frankfurt, Germany, recently, Indonesias central bank (BI) governor Agus Martowardojo said in a press statement received here on Wednesday.

He said the three-point cooperation agreement includes increasing short-term liquidity facility on a regional scale using the Chiang Mai Initiative Multilateralization (CMIM), strengthening surveillance at a regional level through the ASEAN+3 Macroeconomic Research Office (AMRO) and deepening the financial market through development of local/regional currencies-denominated bonds (ASIAN Bond Markets Initiative/ABMI).

"For Indonesia, the ASEAN+3 cooperation is very important," he said.

Agus said provision of short-term liquidity facility will help each country anticipate and overcome the financial crisis.

The strengthening of AMRO, meanwhile, is expected to help maintain Indonesias financial and economic stability by assessing the countrys economic condition.

"ASEAN+3 will support the efforts to deepen the financial market to maintain financial stability at home and in the region," he said.

Agus said the cooperation was very important due to current fluctuations in the global economic condition, especially for Asian countries which are expected to contribute as the worlds engine of growth.

Source: Antara News