24 Aug, 2023

ASEAN Fest 2023: Public Education about ASEAN Chairmanship 2023

The general public, an integral part of ASEAN's progress, can take pride in Indonesia's Chairmanship of ASEAN in 2023. ASEAN Fest 2023 is an inclusive event that offers the community an opportunity to comprehend and appreciate this momentum. Organized by Bank Indonesia (BI) at the Jakarta Convention Center (JCC) from August 22-25, 2025, ASEAN Fest serves as a concurrent event to the second ASEAN Finance Ministers and Central Bank Governors Meeting (AMFGM) in 2023. It extends an invitation to the community to gain knowledge and immerse in the spirit of ASEAN 2023 through various activities including seminars, the "ASEAN Village" as a hub for cultural education, showcasing the traits and cuisines of all ASEAN nations, an ASEAN meeting museum, as well as exhibitions of SMEs and a financial inclusion festival."We, as all ASEAN countries, are a family, and that's what makes ASEAN significant. This forms the essence of ASEAN Fest 2023. Let's gather here each day (until August 25, 2023). Experience the cultural exhibitions of all ASEAN countries, participate in seminars, and engage in talk shows about ASEAN," Perry Warjiyo, the Governor of Bank Indonesia, urged during the inauguration of ASEAN Fest 2023. This call was succeeded by an invitation for ASEAN delegates to explore the ASEAN Village. The event buzzed with contemporary and traditional entertainment, along with school-level competitions.As part of ASEAN Fest, the Digital Financial Inclusion (DFI) Festival is taking place, an outcome of Indonesia's Chairmanship Priority Economic Deliverables for ASEAN 2023. The DFI Festival's objective is to spotlight ASEAN's policies, best practices, and endeavors in advancing digital financial inclusion to support sustainable economic growth, while elevating public awareness of the significance of digital financial literacy. This encompasses activities such as exhibitions and seminars.On the inaugural day of ASEAN Fest, two seminars unfolded: a High-Level Policy Dialogue titled "Frameworks for Integrated Policy: Experiences and the Way Forward," in collaboration between Bank Indonesia (BI) and the Bank of Thailand (BoT), and an International Symposium titled "Digital Financial Literacy to Promote Financial Inclusion." This symposium also marked the launchpad for educational resources on digital financial services, stemming from the collaboration between BI, the Financial Services Authority (OJK), with technical support from the World Bank.During the first seminar, the prominence of policy mix in embodying ASEAN's global leadership was underscored. Governor Perry Warjiyo highlighted that ASEAN's policy mix implementation, including exchange rate interventions, capital flow management, and macroprudential policies amidst global uncertainties, has positioned ASEAN as a reference point. Indonesia's effective implementation of an economic policy mix, rooted in a robust conceptual framework and policy makers' collaboration through open dialogues, stands as evidence in maintaining economic stability amidst global challenges.Simultaneously, Governor Sethaput Suthiwartnarueput of the Bank of Thailand (BoT) shared Thailand's experiences and challenges in implementing an economic policy mix. Acknowledging the formidable challenges in policy mix implementation, Governor Sethaput emphasized the necessity of robust coordination among policy makers for effective policy implementation. He emphasized the flexibility of operationalizing policy mix to match each country's circumstances and readiness.Likewise, Deputy Governor of the Bangko Sentral ng Pilipinas, Francisco G. Dakila, emphasized the importance of optimizing a policy framework that harmonizes various policy instruments to balance the interplay of implemented policies. Francisco stressed the significance of maintaining communication given the multi-objective nature of policy mix. In the subsequent session, the discussion delved into the operationalization of an optimal policy framework to enhance policy mix integration. It was also emphasized that inflation can no longer be the sole indicator of economic expansion, hence the application of policy mix, supported by technology, to bolster economic modeling. Policy implementers should also exercise professional judgment in its application. Looking ahead, policy mix discussions within ASEAN will be further reinforced and deliberated in meetings involving Finance Ministers and Central Bank Governors.Transitioning to the international symposium centered on financial literacy, Deputy Governor of BI, Juda Agung, presented four success stories from Indonesia that demonstrate the positive outcomes of digital financial inclusion. These stories encompass the expansion of marketing reach, the fostering of entrepreneurship and heightened productivity among SMEs through e-commerce, the efficiency enhancement of SME transactions coupled with reduced reliance on cash via digital payments like QRIS introduced by BI, the role of fintech lending in surmounting SME financing obstacles and driving business expansion, and the digitalization of bookkeeping and accounting facilitated by BI's SIAPIK (Financial Information Application System), enabling SMEs to seamlessly and securely generate standardized financial reports digitally.Given the pivotal role of digital financial literacy, Deputy Governor Juda outlined three strategies to fortify digital financial literacy. These strategies encompass establishing an extensive, structured, and targeted framework for digital financial literacy, bolstering consumer safeguards, and fostering synergistic collaboration among governments, regulators, financial service providers, academics, and the broader public.Esteemed speakers in these seminars included Pierre-Olivier Gourinchas (IMF), Mr. Claudio Borio (BIS), Assistant Governor Bank of Thailand, Piti Disyatat, Deputy Commissioner of OJK, Friderica Widyasari, Head of the Department of Monetary Economic Policy at BI, Firman Mochtar, Head of the Department of SME Development and Consumer Protection at BI, Yunita Resmi Sari, Aman Santosa (OJK), Bianca Isainsu (OECD), Francesco Strobbe (World Bank), and Arga M. Nugraha (Bank Rakyat Indonesia).Anticipation was high for the multitude of seminars aligned with ASEAN's 2023 economic focus at ASEAN Fest, alongside a diverse array of educational activities. Further details about ASEAN Fest can be obtained by downloading the provided booklet: https://www.bi.go.id/id/ASEAN-2023/Documents/E-Booklet-Acara-ASEAN-Fest.pdf

18 Aug, 2023

NewPay Signs Trilateral Agreement For Laos-China Trade Facilitation

At the 7th China-South Asia Expo (referred to as the South Expo), Lao NEWPAY Technology Joint Venture Co., Ltd., Yunnan Haohong Supply Chain Co., Ltd., and Fudian Bank Co., Ltd. jointly signed a tripartite agreement to establish the China-Laos Cross-Border Trade Facilitation Service Center.On the tenth anniversary of the "Belt and Road" initiative and the tenth year of the South Expo, in order to actively serve and integrate into the "Belt and Road" construction, support the China-South Asia Expo as an important platform for economic and trade cooperation between China and South Asian countries, and promote comprehensive cooperation between Laos and Yunnan, China, Lao NEWPAY Technology Joint Venture Co., Ltd., Yunnan Haohong Supply Chain Co., Ltd., and Fudian Bank Co., Ltd. have established a strategic partnership. By integrating resources and jointly supporting extensive economic and trade exchanges between China and Southeast Asia, as well as accelerating the development of Yunnan's port economy, the China-Laos Cross-Border Trade Facilitation Service Center is hereby established.With the support of the governments of China and Laos, the China-Laos Cross-Border Trade Facilitation Service Center will continue to facilitate international connectivity, accelerate the construction of various channels such as China-Laos, China-Vietnam, China-Myanmar, Laos-Vietnam, Laos-Thailand, Laos-Myanmar, and enhance the effectiveness of the China-Laos railway "Golden Line." It will promote the seamless connection between the "Lancang-Mekong Express" and initiatives like the China-Europe Railway and the Lancang River-Mekong River international shipping route. The center will also focus on promoting energy and digital information channels, strengthening the construction of international logistics hub nodes, and enhancing the capacity and level of interconnectivity and mutual trust with neighboring countries.The China-Laos Cross-Border Trade Facilitation Service Center, based on cooperation and mutual benefit and in compliance with the laws and regulations of the countries involved, aims to provide one-stop, offshore, and convenient services to facilitate China-South Asia and Southeast Asia economic and trade exchanges. Leveraging the geographical and policy advantages of Yunnan and their respective domestic and overseas institutions, the center actively supports Yunnan Province in becoming a strategic link between the domestic market and international markets in South Asia and Southeast Asia, contributing to the construction of a premier cross-border regional service platform.The establishment of the China-Laos Cross-Border Trade Facilitation Service Center injects new energy into economic and trade cooperation among Laos, China, and ASEAN countries, promoting deeper collaboration in various industries and creating new markets. The center provides a comprehensive logistics information infrastructure, efficient logistics informatization support, and convenient cross-border fund settlement services, forming a closed-loop logistics supply chain management and fund circulation. It aims to enhance cross-border settlement convenience and support the exploration of new trade domains. The parties will use China-Laos trade as a pilot to promote facilitative economic and trade cooperation between China and Southeast Asian countries, accelerate the development of trading in the digital realm, and formulate regional rules and standards through technology. Additionally, the center will actively support the construction of national logistics hubs in Kunming (commerce and service-oriented, port-based, and airport-based) and Mohan (land-based border port), and cooperate to connect the logistics hubs along the China-Laos railway with important western land and sea channels like the North Bay International Gateway Port in Guangxi, the Chongqing Logistics and Operation Center, and the Chengdu National Important Commerce and Logistics Center, fostering a logistics hub alliance and promoting market-oriented operations.The center will construct an international bulk commodity distribution center, utilizing the advantages of the China-Laos railway and the rich resources of agricultural, forest, and mineral products along its route. It will work with local governments and relevant enterprises to expedite the layout and construction of regional international bulk commodity distribution centers for steel, non-ferrous metals, coffee, rubber, vegetables, and other products along the China-Laos railway route. The center will actively seek national policy support and establish strategic material and bulk commodity reserve bases along the China-Laos railway.Collaboratively building cross-border supply chains and the cross-border logistics industry will support regional industrial cooperation and economic development. By establishing a comprehensive logistics information infrastructure and an efficient logistics informationization support system, the center will create an industry-linked logistics big data trading center and logistics-industry aggregation platform. It will enhance the functionality of open-platform logistics carriers, using Kunming as a strategic hub to radiate to South Asia and Southeast Asia, focusing on building the Lancang-Mekong import and export international logistics service network. The goal is to achieve a "three networks, one center" pattern, consisting of provincial networks, domestic networks, international networks, and a logistics big data trading center. The parties will cooperate to address investment and financing issues and provide increased financial support to various projects that align with policy direction.The center will establish a "bank + foreign trade comprehensive service platform" to facilitate cross-border settlements and support the healthy development of new forms of trade. The platform will provide international supply chain comprehensive services for enterprises from home and abroad, including qualification handling, customs declaration and inspection, international logistics, overseas warehousing, global store opening, data product selection, intellectual property, cross-border training, overseas sales, cargo insurance, import and export tax refunds, foreign trade agency, and foreign trade consultation. Through tripartite collaboration, efficient and convenient online and offline payment services will be realized, reducing settlement costs.The China-Laos Cross-Border Trade Facilitation Service Center will support local governments in optimizing the business environment. The parties will strengthen information exchange on cross-border logistics transportation and logistics enterprise development between Laos and Yunnan Province, China. Continued support will be provided to micro and small enterprises in related industries, assisting local governments in constructing service platforms through tripartite cooperation. Additionally, exploring risk-sharing and compensation mechanisms and establishing risk compensation funds for micro and small loans will help optimize the government's business environment.The center will provide specialized scenarios for new forms of trade. It will vigorously innovate and develop online financial services models related to cross-border logistics, and establish cross-border transaction, mailing, and distribution networks for South Asia and Southeast Asia. Together, they will explore the "China-Laos Express + trade + internet" model.