Indonesia Calls for Swift ASEAN Action: Prioritize Local Currency Transactions and Green Economy in AEC Strategic Plan 2026-2030

Jakarta, INTI - Vientiane, Laos, witnessed an important meeting of Senior Officials on ASEAN Economic Integration held on Wednesday (August 14). Led by the Deputy Minister of Industry and Commerce of Laos, the meeting focused on finalizing the ASEAN Economic Community (AEC) Strategic Plan 2026-2030. Indonesia, represented by Assistant Deputy for Regional and Sub-Regional Economic Cooperation, Netty Muharni, played a significant role in the discussions.

In her remarks, Netty Muharni stated that Indonesia warmly welcomes the drafting of the AEC Strategic Plan 2026-2030 as a crucial step toward achieving ASEAN's Vision 2045. She emphasized that this strategic plan will serve as a strong foundation to guide ASEAN toward becoming a resilient, innovative, dynamic, and people-centered region. Indonesia also proposed that ASEAN promptly identify "quick win" initiatives that can be immediately implemented and have a significant impact on all member states.

"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," Netty said. One of the important proposals put forward by Indonesia is to strengthen regional connectivity, especially in the financial sector, through the expansion of Local Currency Transactions (LCT) across all ASEAN countries.

According to Netty, strengthening the implementation of LCT should be a top priority for ASEAN. She highlighted the importance of expanding LCT coverage to all ASEAN member countries and key trading partners. "Establishing LCT agreements with key partner economies such as China, Japan, and South Korea will enhance our resilience," she added.

The AEC Strategic Plan 2026-2030, currently being drafted, will consist of three main parts: Strategic Goals, Objectives, and Strategic Measures. So far, 140 out of 209 strategic measures have been completed, covering 47 objectives. This strategic plan will serve as a guideline for ASEAN in achieving its Vision 2045, which aims to make ASEAN the fourth-largest economy in the world.

In addition to financial connectivity, ASEAN also faces new challenges in various international economic cooperation forums. The digital economy, green economy, intellectual property rights, and inclusivity are becoming increasingly important issues to be integrated into ASEAN trade agreements. This move aligns with ASEAN's commitment to proactively respond to global standards, which is also one of the main pillars of Vision 2045.

Netty Muharni also emphasized that more ASEAN countries, including Indonesia, are beginning to adopt higher standards related to these new issues in trade agreements or other multilateral platforms. One example is Indonesia's ongoing accession to the Organisation for Economic Co-operation and Development (OECD).

To further strengthen cooperation in ASEAN, Indonesia will also host the 9th ASEAN-OECD Good Regulatory Practice Network (GRPN) on November 28, 2024. This event is expected to be an important forum for ASEAN member countries to share experiences and knowledge on implementing good regulatory practices. Indonesia will invite Laos and Malaysia, as pilot countries along with Indonesia, and all ASEAN member countries to participate in this event.

On the sidelines of the meeting, the Indonesian delegation also held bilateral talks with Laos, currently serving as the ASEAN Chair in 2024. Two main agenda items were discussed: the ASEAN Batik Collaboration initiative and Indonesia's support for Laos in facing its declining economic situation. The Batik initiative is Indonesia's contribution, launched by Coordinating Minister for Economic Affairs, Airlangga Hartarto, during the 57th ASEAN Anniversary on August 8, 2024.

This meeting not only provided an opportunity to formulate long-term strategies but also to address the short-term challenges faced by ASEAN member countries. Indonesia continues to demonstrate its role as a leader in promoting stronger regional cooperation, particularly in the areas of financial connectivity and the green economy, to realize a more resilient and competitive ASEAN.