ASEAN Plus Three financial regionalism: Indonesia’s responses

In recent years, financial cooperation within ASEAN Plus Three (APT) has made significant progress. It has covered bond market development, better access to financing, financial stabilization and capital market harmonization, and several initiatives have resulted in concrete programmes being implemented by the APT member countries (ASEAN states, China, South Korea and Japan). In the context of the changes taking place in the regional dynamic, this paper examines the role and involvement of Indonesian financial authorities towards the development of APT financial regionalism, focusing on issues related to regional liquidity arrangements and regional bond markets. The initial findings indicate that, in considering the potential benefits of warding off future economic shocks, there is a strong intention among Indonesian financial authorities to create a space in their national framework for regional liquidity arrangements. However, the authorities are unenthusiastic about the progress of regional governance on bond markets and, for that reason, are disinclined to transform their national regulatory space as it potentially hampers the Indonesian domestic market.