Jakarta, CNBC Indonesia – Tensions between the United States and China as well as the weakening of the bamboo curtain country’s economy have made the countries of the Southeast Asian region that are members of ASEAN see the potential for a “windfall”.
Minister of Finance Sri Mulyani revealed that this sentiment came to the fore in the second ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) in the series of ASEAN 2023 Indonesia Decrees which was held in Jakarta, Friday (25/8/2023).
“The ASEAN and India regions are two regions that are seen as areas that can benefit from this situation,” Sri Mulyani said during a press conference after the AFMGM.
He said the benefits of the ASEAN region from the conditions that occurred in China include the potential for industrial relocation to regional countries and the release of capital flows from China to regional countries, so that there is a potential for large foreign capital inflows going forward.
“This study from the World Bank, AMRO, and ERIA shows that there is an opportunity for geopolitical competition for ASEAN, especially from capital flows, manufacturing that will be reallocated here, technology and also how we need to position ASEAN in an attractive and competitive way,” he said.
However, Sri Mulyani did not mention the size of the potential from relocation to capital flows into the region, including Indonesia. He only emphasized that what needs to be prepared now is to maintain economic stability with the capital already owned by regional countries, namely the policy mix between monetary and fiscal.
“ASEAN’s economic growth continues to be a bright spot in the future at the global economic level. ASEAN is projected to grow 4.5% this year, higher than global growth. Of course, the composition of each country is different,” he said.
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