ASEAN's New Direction: Indonesia Advocates Strengthening Local Currency Transactions Amidst Accelerating Digital Economy

Jakarta, INTI - The Senior Officials Meeting on ASEAN Economic Integration was held again in Vientiane, Laos, on Wednesday (August 14), focusing on drafting the ASEAN Economic Community (AEC) Strategic Plan 2026-2030. Led by Laos' Deputy Minister of Industry and Commerce, this meeting marked a crucial moment for ASEAN countries to set a new direction for regional economic integration in response to evolving global challenges.

The Indonesian delegation, led by Assistant Deputy for Regional and Sub-Regional Economic Cooperation, Netty Muharni, expressed warm support for the drafting of the AEC Strategic Plan 2026-2030. She emphasized the importance of this plan as a bridge toward achieving ASEAN's Vision 2045, which aims to make the region more resilient, innovative, dynamic, and people-centered. According to her, Indonesia proposed identifying "quick win" initiatives that have a significant impact and can be immediately implemented to address the most pressing issues.

"I appreciate the assistance from the ASEAN Secretariat in developing guidelines to identify quick win initiatives that will be part of the AEC Strategic Plan 2026-2030," said Netty. One of the initiatives proposed by Indonesia is to strengthen regional connectivity, particularly in the financial sector, by expanding Local Currency Transactions (LCT) across all ASEAN countries.

Netty emphasized that strengthening the implementation of LCT should be a top priority. "We must prioritize strengthening the implementation of Local Currency Transactions (LCT), expanding their coverage to all ASEAN member countries and key trading partners. Establishing LCT agreements with major partner economies such as China, Japan, and South Korea will further enhance our resilience," she stressed.

The AEC Strategic Plan 2026-2030, which is scheduled to be adopted by Heads of State in 2025, is a crucial element for ASEAN to achieve its Vision 2045. The plan will comprise three main sections: Strategic Goals, Objectives, and Strategic Measures. Currently, 140 out of 209 strategic measures have been completed, covering 47 objectives.

Amid the emergence of new issues in various international economic cooperation forums, such as the digital economy, labor, the green economy, intellectual property rights, and inclusivity, ASEAN is required to proactively incorporate these issues into ongoing trade agreements. This move aligns with the Vision 2045 goal of making ASEAN the world's fourth-largest economy by 2045.

Indonesia, as one of the leading countries in ASEAN, is also demonstrating its commitment to addressing these new issues by adopting higher standards in trade agreements or other multilateral platforms, including its ongoing accession to the Organisation for Economic Co-operation and Development (OECD).

As part of its commitment, Indonesia will host the 9th ASEAN-OECD Good Regulatory Practice Network (GRPN) on November 28, 2024. This meeting will serve as a forum for sharing knowledge on implementing good regulatory practices in ASEAN, inviting ASEAN member countries, including Laos and Malaysia as pilot countries.

On the sidelines of the meeting, Indonesia also held bilateral talks with Laos as the ASEAN Chair in 2024. The two main topics discussed were the ASEAN Batik Collaboration initiative, launched by Coordinating Minister for Economic Affairs Airlangga Hartarto during the 57th ASEAN Anniversary, and Indonesia's support for Laos in facing its declining economic situation.

This meeting is tangible evidence that ASEAN is not only moving toward a long-term vision but also responding to the urgent needs and challenges faced by its members. In this context, Indonesia continues to play a key role in promoting closer regional collaboration, particularly in strengthening financial connectivity through local currency transactions.