Indonesia, through the Coordinating Ministry for Economic Affairs, joined the ASEAN Economic Ministers (AEM) Special Meeting held virtually on 10 April 2025. The Indonesian delegation was led by Trade Minister Budi Santoso and accompanied by representatives from the Coordinating Ministry for Economic Affairs and the Ministry of Foreign Affairs at the Ministry of Trade office.

ASEAN Responds to U.S. Reciprocal Tariff Announcement

The meeting addressed the reciprocal tariff policy announced by the United States on 2 April 2025. The discussion focused on assessing the impact of these tariffs on ASEAN member states and formulating a collective response. ASEAN ministers agreed in principle to engage in dialogue with the U.S. to maintain positive relations.

No Retaliation Strategy, Stronger Regional Integration Affirmed

ASEAN agreed not to retaliate against the U.S. but instead emphasized the importance of deepening regional economic integration. The bloc is committed to maintaining a predictable, transparent, non-discriminatory, fair, inclusive, and open economic environment that has supported regional trade and development.

Indonesia Pushes Malaysia to Lead ASEAN-U.S. Engagement

Indonesia emphasized the importance of Malaysia’s active role as ASEAN Chair in engaging with the U.S. This message was previously discussed during a meeting between Indonesia’s Coordinating Minister for Economic Affairs and the Prime Minister of Malaysia. The Joint Statement reflected this diplomatic stance.

Trade Frameworks and Digital Agreements to Be Strengthened

The meeting highlighted the importance of utilizing the ASEAN-U.S. Trade and Investment Framework Arrangement (TIFA) and the ASEAN-U.S. Strategic Partnership to identify shared interests. Commitments to existing ASEAN agreements, including the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Digital Economy Framework Agreement (DEFA), were also reinforced to boost intra-ASEAN trade.

Expanding Trade Partnerships and Reducing Market Dependency

ASEAN agreed to explore new trade partners while continuing relationships with current ones. Expanding participation in the Regional Comprehensive Economic Partnership (RCEP) was encouraged to diversify markets and reduce overdependence on specific economies.

ASEAN Finance Ministers and Central Bank Governors Strengthen Resilience

On the same day, the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) took place in Kuala Lumpur, Malaysia. Indonesia was represented by Bank Indonesia Governor Perry Warjiyo and Finance Minister Sri Mulyani Indrawati. The session focused on enhancing stability, inclusiveness, and financial resilience amid global uncertainty.

Commitment to Multilateralism and Inclusive Finance Reaffirmed

ASEAN reaffirmed its support for an open, inclusive, rules-based multilateral trading system. Ministers and governors pledged constructive cooperation with all partners to build a stronger and more sustainable global economy. They also committed to accelerating regional financial integration and boosting intra-ASEAN investment and trade.

Joint Statement Aligns with Malaysia’s 2025 ASEAN Chairmanship

The joint statement from AFMGM aligned with Malaysia’s ASEAN 2025 theme of “Inclusivity and Sustainability.” Three priorities were identified: financing climate transition in a fair and resilient manner, expanding inclusive and connected ASEAN capital markets, and enhancing inclusive instant payment connectivity across the region.

Cambodia Joins Regional Payment Connectivity Initiative

The National Bank of Cambodia officially joined the Regional Payment Connectivity (RPC) initiative during the second phase launch of QR Connectivity between Malaysia and Cambodia on 8 April 2025. This marks stronger regional financial integration under RPC.

ASEAN Engages Private Sector for Regional Cooperation

AFMGM also hosted dialogues with the ASEAN Business Advisory Council, EU-ASEAN Business Council, and US-ASEAN Business Council. These discussions encouraged private sector involvement in transition financing, technology adoption, and cross-border payment development. The Philippines, ASEAN Chair for 2026, announced it will host the 13th AFMGM next year.

PHOTO: EKON.GO.ID

This article was created with AI assistance.