Regardless of which stance Indonesia takes, there are several foregone conclusions. First, soundness and credibility of domestic policies are not substitutes for regional commitments even though, at times when domestic policies are ‘stuck’, regional commitments can help to ‘tie hands’ and exert external pressure. Second, authorities should not impose strict benchmarks on integration. Instead, they should facilitate and encourage it, while allowing the market to work freely. Third, regardless of whether the banking integration framework is itself successful, it will result in the ASEAN banking sector being more integrated, for the simple reason that it will have reduced dependence on European and American markets. The conclusion is clear: ASEAN countries should welcome this latest step toward banking integration and prepare accordingly.
Catatan:
Pernah dimuat di Jakarta Post dan EastAsiaForum, 31 May 2012
Co-author: Maria Monica Wihardja, a researcher at the Centre for Strategic and International Studies, Jakarta, and a lecturer at the Department of Economics, University of Indonesia. She is currently on leave to work as a consultant at Bank Indonesia. She is also Associate Editor at the EAF Indonesia desk.
