Singapore-Indonesia Leaders’ Retreat 2018: Deals inked to protect investors, defend currencies and cooperate in areas like fintech
By Yasmine Yahya, Senior Political Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
Singapore and Indonesia announced several initiatives yesterday to deepen their relationship, including agreements to protect each other's investors and to shore up financial and monetary stability in the region.
At their annual retreat yesterday, Prime Minister Lee Hsien Loong and President Joko Widodo noted the mutual trust between the two countries, and said they could do more to benefit their peoples.
Amid volatile financial markets, Mr Joko announced a US$10 billion (S$13.8 billion) local currency swap and US dollar repurchase agreement between the two countries.
This will give both countries access to each other's currency and to US dollars. They can use this to settle trades or defend their currency in times of financial stress.
This reduces the uncertainty and risk that can stem from exchange rate fluctuations, in times of financial market turbulence.
"In the midst of this global economic uncertainty, economic cooperation was our focus," Mr Joko said, welcoming the deal between Bank Indonesia and the Monetary Authority of Singapore.
The leaders also witnessed the signing of a treaty which establishes rules on how each country should treat investments and investors from the other.
Singapore companies in Indonesia will enjoy protection and have access to international arbitration in the event of investment disputes, and vice versa.
Singapore is Indonesia's largest investor, with US$8.4 billion in realised investments last year. Both are among each other's top trading partners and sources of visitors, with two-way trade totalling $59.4 billion last year.
Several other agreements were signed between Singapore and Indonesia yesterday, including on financial technology cooperation and cultural cooperation.
PM Lee also announced a project to develop a new RISING fellowship programme. The term, conceived when both sides marked the 50th anniversary of diplomatic ties last year, is an amalgamation of "RI" for the Republic of Indonesia and "SING" for Singapore.
PM Lee said: "We hope every year to welcome more than a dozen leaders and officials, promising young people from Indonesia - not just Jakarta, but also the provinces and other cities - to come and visit us, to make friends, appreciate how we can work further together, what are the things which we can learn from each other."
Both leaders noted tourism cooperation has grown, with three new cruise itineraries expected to bring over 50,000 visitors to Bintan, Surabaya and North Bali by the end of this year. An agreement between Indonesian terminal operator Pelindo III and Genting's Star Cruises will encourage more cruises and facilitate the upgrading of Bali's Celukan Bawang port, and explore the upgrading of other ports like Tanjung Perak port in Surabaya, PM Lee said.
He noted that both countries' defence establishments are also working together on an intelligence-sharing facility.
"Our cooperation will continue during the next few months, and I am sure after the elections they will pick up strength again and will strengthen and grow further every year," PM Lee said, as he wished Mr Joko a smooth election next year.
By Yasmine Yahya, Senior Political Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
At their annual retreat yesterday, Prime Minister Lee Hsien Loong and President Joko Widodo noted the mutual trust between the two countries, and said they could do more to benefit their peoples.
Amid volatile financial markets, Mr Joko announced a US$10 billion (S$13.8 billion) local currency swap and US dollar repurchase agreement between the two countries.
This will give both countries access to each other's currency and to US dollars. They can use this to settle trades or defend their currency in times of financial stress.
This reduces the uncertainty and risk that can stem from exchange rate fluctuations, in times of financial market turbulence.
"In the midst of this global economic uncertainty, economic cooperation was our focus," Mr Joko said, welcoming the deal between Bank Indonesia and the Monetary Authority of Singapore.
The leaders also witnessed the signing of a treaty which establishes rules on how each country should treat investments and investors from the other.
Singapore companies in Indonesia will enjoy protection and have access to international arbitration in the event of investment disputes, and vice versa.
Singapore is Indonesia's largest investor, with US$8.4 billion in realised investments last year. Both are among each other's top trading partners and sources of visitors, with two-way trade totalling $59.4 billion last year.
Several other agreements were signed between Singapore and Indonesia yesterday, including on financial technology cooperation and cultural cooperation.
PM Lee also announced a project to develop a new RISING fellowship programme. The term, conceived when both sides marked the 50th anniversary of diplomatic ties last year, is an amalgamation of "RI" for the Republic of Indonesia and "SING" for Singapore.
PM Lee said: "We hope every year to welcome more than a dozen leaders and officials, promising young people from Indonesia - not just Jakarta, but also the provinces and other cities - to come and visit us, to make friends, appreciate how we can work further together, what are the things which we can learn from each other."
Both leaders noted tourism cooperation has grown, with three new cruise itineraries expected to bring over 50,000 visitors to Bintan, Surabaya and North Bali by the end of this year. An agreement between Indonesian terminal operator Pelindo III and Genting's Star Cruises will encourage more cruises and facilitate the upgrading of Bali's Celukan Bawang port, and explore the upgrading of other ports like Tanjung Perak port in Surabaya, PM Lee said.
He noted that both countries' defence establishments are also working together on an intelligence-sharing facility.
"Our cooperation will continue during the next few months, and I am sure after the elections they will pick up strength again and will strengthen and grow further every year," PM Lee said, as he wished Mr Joko a smooth election next year.
Seven agreements signed between Singapore and Indonesia agencies at Leaders' Retreat
By Nur Asyiqin Mohamad Salleh, Indonesia Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
Singapore and Indonesia signed various pacts yesterday to deepen economic cooperation and cultural exchanges, as well as boost collaboration in areas such as tourism, maritime training and industry development.
Among the seven wide-ranging agreements inked at the Leaders' Retreat in Bali was a bilateral investment treaty, which establishes rules on how each country should treat investments and investors from the other nation.
The treaty will ensure the investments of companies operating in the other country are protected, on top of the protection already accorded under each nation's domestic laws. It will also give investors access to international arbitration in the event of investment disputes.
Besides protecting the interests of investors, the treaty will also reinforce the strong economic ties between Singapore and Indonesia, said Singapore's Ministry of Trade and Industry. This, it added, is especially significant as Singapore has been the top investor in Indonesia since 2014, with realised investments hitting US$8.4 billion (S$11.6 billion) last year.
"Singapore has robust and long-standing economic ties with Indonesia, and I am glad that both countries remain committed to strengthening our economic relations," said Minister for Trade and Industry Chan Chun Sing. "The signing of this (treaty) can boost the confidence of investors venturing into Indonesia, leading to greater trade and investment flows between our two countries."
A pact to strengthen cooperation in financial technology (fintech) and nurture innovation in financial services between both countries was also signed. The agreement between Indonesia's Financial Services Authority and the Monetary Authority of Singapore (MAS) will facilitate information-sharing on emerging fintech market trends, among other things, and promote joint innovation projects between the two countries.
A framework will also be established to help fintech companies better understand the regulatory regime and opportunities in each country, lowering barriers of entry for firms looking to make their forays into each other's markets.
Cultural cooperation also received a boost, with Singapore's Ministry of Culture, Community and Youth and Indonesia's Ministry of Education and Culture agreeing to pave the way for more collaboration and training opportunities in the arts and heritage.
And Singapore technology solutions providers and Indonesian manufacturers will be able to work together more closely to drive industry development, thanks to a pact between Enterprise Singapore and Indonesia's Agency for Research and Development of Industry.
This comes on the back of Indonesia's push to spur economic growth and create more jobs in the following key sectors: automotive, chemicals, electronics, food and beverage, and textiles and garments.
Cooperation in cruise tourism - an area both countries are keen to develop - will also be intensified, with an agreement between Genting Cruise Lines and state-owned terminal operator Pelabuhan Indonesia III. They will team up to further develop facilities at the Indonesian port of Celukan Bawang in north Bali for bigger cruise ships of up to 350m to berth directly, and to explore possible joint development of other cruise ports.
The remaining two agreements will pave the way for more collaboration in training. One will see Temasek Foundation International and Ngee Ann Polytechnic collaborate with Indonesia's Ministry of Research, Technology and Higher Education on fintech learning for higher education providers.
The other is an extension of a pact between the Maritime and Port Authority of Singapore and Indonesia's Directorate General of Sea Transportation to cooperate on the training of their officers.
By Nur Asyiqin Mohamad Salleh, Indonesia Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
Singapore and Indonesia signed various pacts yesterday to deepen economic cooperation and cultural exchanges, as well as boost collaboration in areas such as tourism, maritime training and industry development.
Among the seven wide-ranging agreements inked at the Leaders' Retreat in Bali was a bilateral investment treaty, which establishes rules on how each country should treat investments and investors from the other nation.
The treaty will ensure the investments of companies operating in the other country are protected, on top of the protection already accorded under each nation's domestic laws. It will also give investors access to international arbitration in the event of investment disputes.
Besides protecting the interests of investors, the treaty will also reinforce the strong economic ties between Singapore and Indonesia, said Singapore's Ministry of Trade and Industry. This, it added, is especially significant as Singapore has been the top investor in Indonesia since 2014, with realised investments hitting US$8.4 billion (S$11.6 billion) last year.
"Singapore has robust and long-standing economic ties with Indonesia, and I am glad that both countries remain committed to strengthening our economic relations," said Minister for Trade and Industry Chan Chun Sing. "The signing of this (treaty) can boost the confidence of investors venturing into Indonesia, leading to greater trade and investment flows between our two countries."
A pact to strengthen cooperation in financial technology (fintech) and nurture innovation in financial services between both countries was also signed. The agreement between Indonesia's Financial Services Authority and the Monetary Authority of Singapore (MAS) will facilitate information-sharing on emerging fintech market trends, among other things, and promote joint innovation projects between the two countries.
A framework will also be established to help fintech companies better understand the regulatory regime and opportunities in each country, lowering barriers of entry for firms looking to make their forays into each other's markets.
Cultural cooperation also received a boost, with Singapore's Ministry of Culture, Community and Youth and Indonesia's Ministry of Education and Culture agreeing to pave the way for more collaboration and training opportunities in the arts and heritage.
And Singapore technology solutions providers and Indonesian manufacturers will be able to work together more closely to drive industry development, thanks to a pact between Enterprise Singapore and Indonesia's Agency for Research and Development of Industry.
This comes on the back of Indonesia's push to spur economic growth and create more jobs in the following key sectors: automotive, chemicals, electronics, food and beverage, and textiles and garments.
Cooperation in cruise tourism - an area both countries are keen to develop - will also be intensified, with an agreement between Genting Cruise Lines and state-owned terminal operator Pelabuhan Indonesia III. They will team up to further develop facilities at the Indonesian port of Celukan Bawang in north Bali for bigger cruise ships of up to 350m to berth directly, and to explore possible joint development of other cruise ports.
The remaining two agreements will pave the way for more collaboration in training. One will see Temasek Foundation International and Ngee Ann Polytechnic collaborate with Indonesia's Ministry of Research, Technology and Higher Education on fintech learning for higher education providers.
The other is an extension of a pact between the Maritime and Port Authority of Singapore and Indonesia's Directorate General of Sea Transportation to cooperate on the training of their officers.
Currency deal with Indonesia to build stability: MAS head
By Yasmine Yahya, Senior Political Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
An upcoming deal between Singapore and Indonesia for a US$10 billion (S$13.8 billion) local currency swap and US dollar repurchase agreement is aimed at shoring up monetary and financial stability in the region, even as rising interest rates shake up global markets, the head of Singapore's central bank said yesterday.
Mr Ravi Menon, managing director of the Monetary Authority of Singapore, noted that there has been greater volatility in global markets, with the gradual hiking of interest rates in the United States.
This has, in turn, resulted in an outflow of funds from emerging markets, including South-east Asia, which he said is to be expected.
"But you want to make sure there is no snowball effect, that it is not overdone," he told the media on the sidelines of a Leaders' Retreat, where the bilateral financial arrangement was announced.
"We feel that in this part of the world, ASEAN economies continue to be strong - fundamentals are sound, policy responses have been good. So, we should try to avoid a situation where the market overreacts."
Having financial arrangements, like the one Singapore and Indonesia are planning, will help to build confidence in the region amid this turbulent climate, he added.
Such arrangements can help central banks defend their currencies or deal with short-term liquidity needs, while being protected from exchange rate fluctuations, he said.
The Indonesian rupiah has been depreciating steadily against the US dollar in recent months amid broader financial market volatility, even hitting a two-decade low against the greenback earlier this week.
A bilateral currency swap is a standby arrangement between two central banks. If either central bank decides to activate it, the two will then exchange a certain amount of their currency with the other.
So, for example, the Singapore central bank may swap US$5 billion worth of Singdollars for Indonesian rupiah amounting to the same value, at the prevailing exchange rate.
After a set period of time, the two central banks will return the swapped currencies to each other at the same exchange rate as when the swap was made.
Under a US dollar repurchase agreement, one central bank will provide the other with US dollars in exchange for US treasuries, Japan government bonds and German bonds - high-quality collateral.
"So, basically, it is a collateralised loan, but it is called a repurchase because at the end of the period, the original transaction is reversed - the securities pledged are repurchased with US dollars," Mr Menon explained.
"If they need US dollars, or we need US dollars in the short term, then instead of selling assets, we can pledge the assets and use the US dollars."
Mr Menon added that the bilateral financial arrangement helps ensure that Indonesia, where Singapore has many investments, is well-placed to ride out this period of uncertainty. "We have confidence in the Indonesian economy. The macro fundamentals here are sound, policy responses have been judicious, and it is important that they remain so."
Indonesia-Singapore currency agreements
Deals likely to boost confidence: Analysts
They signal growing mutual trust, serve as 2nd line of defence in uncertain times
By Wahyudi Soeriaatmadja, Indonesia Correspondent In Jakarta, The Straits Times, 15 Oct 2018
A planned US$10 billion (S$13.8 billion) currency swap deal and US dollar repurchase agreement between Singapore and Indonesia will boost confidence in uncertain times, say analysts.
They say both would serve as a second line of defence, complementing the existing Chiang Mai Initiative, a multilateral currency swap arrangement among Asean members plus China, Japan and South Korea. Indonesia has never called it into use. The Indonesia-Singapore deals would also signal growing trust between the two neighbours, the analysts say.
"These deals are positive for both countries, as the region is facing foreign fund outflows while advanced economies have been tightening their monetary policies," Jakarta-based economist Myrdal Gunarto of Maybank Indonesia told The Straits Times.
"Indonesia and Singapore are main partners in terms of investment and trade. Therefore, they need to do joint measures that would keep economic stability... and maintain dollar liquidity in any condition," Mr Myrdal added.
Under the planned swap that the central banks of both countries are finalising, Bank Indonesia could turn to the Monetary Authority of Singapore for up to US$10 billion worth of Singapore dollars for an equivalent amount of rupiah at the prevailing exchange rate.
After a pre-determined period of time, the two central banks will return the swapped currencies to each other at the same exchange rate as when the transaction was first made. Normally, the central bank that requested activation of the swap pays interest to the counterpart central bank.
Under the US dollar repurchase agreement, one central bank will provide the other with US dollars in exchange for pledged assets such as United States treasuries or government bonds. This would prevent the fire sale of assets that would exacerbate the situation in the event of a tight financial squeeze.
The central bank that receives US dollars can then lend them to commercial banks at home, fulfilling growing demand for the currency. Such arrangements help central banks defend their local currencies or deal with short-term liquidity needs, while being protected from exchange rate fluctuations.
For example, during hard times, commercial banks in Indonesia tend to put a brake on lending due to rising risks. Inevitably this leads to pressure on the cost of borrowing, as lending banks demand higher interest rates to compensate for the higher risks. The central bank, Bank Indonesia, could intervene by providing rupiah-denominated facilities to commercial banks to relieve the pressure on the cost of borrowing, but its access to US dollar facilities is limited by the amount of foreign exchange reserves it has. This is when a foreign currency swap line would come in handy.
At the end of last month, Indonesia had US$114.8 billion in foreign exchange reserves while Singapore had $398 billion.
Singapore is Indonesia's largest investor, with US$8.4 billion in realised investments last year. Both are among each other's top trading partners, with two-way trade totalling $59.4 billion last year.
This means financial instability in Indonesia would have repercussions in Singapore.
Indonesia has suffered a sharp drop in the value of the rupiah, caused by a widening current account deficit - where imports of goods and services exceed exports - amid US-China trade tensions.
Indonesia's current account deficit in the second quarter hit US$8 billion, an amount equal to 3 per cent of gross domestic product. The figure was the highest in nearly four years.
A growing middle class, hungry for imports, and rising global crude oil prices have been blamed for the yawning deficit.
Fuel prices are a headache for the government which, since 2016, has not adjusted the price of the highest-selling 88 octane fuel in an effort to keep it affordable. Raising the fuel price now - ahead of next April's presidential polls in which President Joko Widodo is seeking re-election - would be politically risky.
Some analysts see the currency swap deal only as a band aid to deal with the falling rupiah.
"While this is positive, I prefer to see a current account surplus and a sustained slower economic growth to bolster our local currency. If you get this deal but if your current account deficits were to worsen, then what's the point?" analyst Harry Su told The Straits Times.
By Yasmine Yahya, Senior Political Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
Mr Ravi Menon, managing director of the Monetary Authority of Singapore, noted that there has been greater volatility in global markets, with the gradual hiking of interest rates in the United States.
This has, in turn, resulted in an outflow of funds from emerging markets, including South-east Asia, which he said is to be expected.
"But you want to make sure there is no snowball effect, that it is not overdone," he told the media on the sidelines of a Leaders' Retreat, where the bilateral financial arrangement was announced.
"We feel that in this part of the world, ASEAN economies continue to be strong - fundamentals are sound, policy responses have been good. So, we should try to avoid a situation where the market overreacts."
Having financial arrangements, like the one Singapore and Indonesia are planning, will help to build confidence in the region amid this turbulent climate, he added.
Such arrangements can help central banks defend their currencies or deal with short-term liquidity needs, while being protected from exchange rate fluctuations, he said.
The Indonesian rupiah has been depreciating steadily against the US dollar in recent months amid broader financial market volatility, even hitting a two-decade low against the greenback earlier this week.
A bilateral currency swap is a standby arrangement between two central banks. If either central bank decides to activate it, the two will then exchange a certain amount of their currency with the other.
So, for example, the Singapore central bank may swap US$5 billion worth of Singdollars for Indonesian rupiah amounting to the same value, at the prevailing exchange rate.
After a set period of time, the two central banks will return the swapped currencies to each other at the same exchange rate as when the swap was made.
Under a US dollar repurchase agreement, one central bank will provide the other with US dollars in exchange for US treasuries, Japan government bonds and German bonds - high-quality collateral.
"So, basically, it is a collateralised loan, but it is called a repurchase because at the end of the period, the original transaction is reversed - the securities pledged are repurchased with US dollars," Mr Menon explained.
"If they need US dollars, or we need US dollars in the short term, then instead of selling assets, we can pledge the assets and use the US dollars."
Mr Menon added that the bilateral financial arrangement helps ensure that Indonesia, where Singapore has many investments, is well-placed to ride out this period of uncertainty. "We have confidence in the Indonesian economy. The macro fundamentals here are sound, policy responses have been judicious, and it is important that they remain so."
Indonesia-Singapore currency agreements
Deals likely to boost confidence: Analysts
They signal growing mutual trust, serve as 2nd line of defence in uncertain times
By Wahyudi Soeriaatmadja, Indonesia Correspondent In Jakarta, The Straits Times, 15 Oct 2018
They say both would serve as a second line of defence, complementing the existing Chiang Mai Initiative, a multilateral currency swap arrangement among Asean members plus China, Japan and South Korea. Indonesia has never called it into use. The Indonesia-Singapore deals would also signal growing trust between the two neighbours, the analysts say.
"These deals are positive for both countries, as the region is facing foreign fund outflows while advanced economies have been tightening their monetary policies," Jakarta-based economist Myrdal Gunarto of Maybank Indonesia told The Straits Times.
"Indonesia and Singapore are main partners in terms of investment and trade. Therefore, they need to do joint measures that would keep economic stability... and maintain dollar liquidity in any condition," Mr Myrdal added.
Under the planned swap that the central banks of both countries are finalising, Bank Indonesia could turn to the Monetary Authority of Singapore for up to US$10 billion worth of Singapore dollars for an equivalent amount of rupiah at the prevailing exchange rate.
After a pre-determined period of time, the two central banks will return the swapped currencies to each other at the same exchange rate as when the transaction was first made. Normally, the central bank that requested activation of the swap pays interest to the counterpart central bank.
Under the US dollar repurchase agreement, one central bank will provide the other with US dollars in exchange for pledged assets such as United States treasuries or government bonds. This would prevent the fire sale of assets that would exacerbate the situation in the event of a tight financial squeeze.
The central bank that receives US dollars can then lend them to commercial banks at home, fulfilling growing demand for the currency. Such arrangements help central banks defend their local currencies or deal with short-term liquidity needs, while being protected from exchange rate fluctuations.
For example, during hard times, commercial banks in Indonesia tend to put a brake on lending due to rising risks. Inevitably this leads to pressure on the cost of borrowing, as lending banks demand higher interest rates to compensate for the higher risks. The central bank, Bank Indonesia, could intervene by providing rupiah-denominated facilities to commercial banks to relieve the pressure on the cost of borrowing, but its access to US dollar facilities is limited by the amount of foreign exchange reserves it has. This is when a foreign currency swap line would come in handy.
At the end of last month, Indonesia had US$114.8 billion in foreign exchange reserves while Singapore had $398 billion.
Singapore is Indonesia's largest investor, with US$8.4 billion in realised investments last year. Both are among each other's top trading partners, with two-way trade totalling $59.4 billion last year.
This means financial instability in Indonesia would have repercussions in Singapore.
Indonesia has suffered a sharp drop in the value of the rupiah, caused by a widening current account deficit - where imports of goods and services exceed exports - amid US-China trade tensions.
Indonesia's current account deficit in the second quarter hit US$8 billion, an amount equal to 3 per cent of gross domestic product. The figure was the highest in nearly four years.
A growing middle class, hungry for imports, and rising global crude oil prices have been blamed for the yawning deficit.
Fuel prices are a headache for the government which, since 2016, has not adjusted the price of the highest-selling 88 octane fuel in an effort to keep it affordable. Raising the fuel price now - ahead of next April's presidential polls in which President Joko Widodo is seeking re-election - would be politically risky.
Some analysts see the currency swap deal only as a band aid to deal with the falling rupiah.
"While this is positive, I prefer to see a current account surplus and a sustained slower economic growth to bolster our local currency. If you get this deal but if your current account deficits were to worsen, then what's the point?" analyst Harry Su told The Straits Times.
ASEAN leaders vow to uphold multilateralism, international cooperation
Member states will work together to ensure no one is left behind in march to progress
By Nur Asyiqin Mohamad Salleh, Indonesia Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
ASEAN remains committed to upholding the open and rules-based multilateral trading system that has long underpinned the region's economic growth, and will work together to ensure that no one is left behind in the march for progress, its leaders vowed yesterday.
The 10-member grouping has this past year, amid trade disputes and rising protectionism, been vocal in its support of free and open trade.
And yesterday, its leaders reaffirmed their commitment to multilateralism and international cooperation when they met in Bali, where the meetings of the International Monetary Fund (IMF) and World Bank have seen calls by economic chiefs to modernise, not dismantle, the global trade system.
Singapore's Prime Minister Lee Hsien Loong told reporters after the meeting that ASEAN is redoubling its efforts on the Regional Comprehensive Economic Partnership, and hopes to achieve a "substantial conclusion" by the year-end. The 16-country pact would be the world's largest free trade deal.
Amid global challenges, ASEAN's economy remains a bright spot, noted Indonesian President Joko Widodo, who convened the ASEAN Leaders Gathering and co-chaired it with PM Lee.
ASEAN has also made progress in the achievement of sustainable development goals, he added, noting that extreme poverty had plunged.
"ASEAN leadership has agreed on how crucial it is to reduce the disparity and development gap between member states," said Mr Joko. "This is an important step in ensuring that no one is left behind."
Discussions about sustainable development took centre stage at the gathering, which also involved leaders from the United Nations, IMF and World Bank.
ASEAN will face a range of challenges on sustainable development, from economic restructuring and accelerating urbanisation to ageing populations, said PM Lee. "As we pursue economic integration, it is important that ASEAN also aligns our economic objectives with the 2030 Agenda for Sustainable Development so that our economic growth will bring tangible benefits to the 630 million citizens of ASEAN."
Sustainable development is a priority under Singapore's ASEAN chairmanship, added PM Lee.
The Republic will upgrade its technical cooperation centres in Vietnam, Cambodia and Laos, and has set up a new office, Infrastructure Asia, to facilitate implementation of infrastructure projects. This will help spur economic growth, he said.
PM Lee also urged his ASEAN colleagues to keep collaborating with international bodies, such as the IMF and World Bank, through regional and multilateral initiatives.
Mr Joko raised the importance of thinking about a mechanism for regional and global cooperation for post-disaster recovery.
He also encouraged using technology and innovative financing sources to achieve sustainable development goals. Setting out Indonesia's progress in sustainable development, he noted poverty has fallen to 9.8 per cent this year, while households' access to clean water is up by 76 per cent. He also stressed that the achievement of sustainable development goals requires "global leadership and shared responsibilities".
Related
Singapore tops World Bank Human Capital Index 2018
PM Lee Hsien Loong at the World Bank Human Capital Summit Dialogue with World Bank President Dr Jim Yong Kim -11 Oct 2018
MFA Press Statement: Singapore-Indonesia Leaders' Retreat, Bali, Indonesia, 11 October 2018 11 Oct 2018
Member states will work together to ensure no one is left behind in march to progress
By Nur Asyiqin Mohamad Salleh, Indonesia Correspondent In Nusa Dua (Bali), The Straits Times, 12 Oct 2018
The 10-member grouping has this past year, amid trade disputes and rising protectionism, been vocal in its support of free and open trade.
And yesterday, its leaders reaffirmed their commitment to multilateralism and international cooperation when they met in Bali, where the meetings of the International Monetary Fund (IMF) and World Bank have seen calls by economic chiefs to modernise, not dismantle, the global trade system.
Singapore's Prime Minister Lee Hsien Loong told reporters after the meeting that ASEAN is redoubling its efforts on the Regional Comprehensive Economic Partnership, and hopes to achieve a "substantial conclusion" by the year-end. The 16-country pact would be the world's largest free trade deal.
Amid global challenges, ASEAN's economy remains a bright spot, noted Indonesian President Joko Widodo, who convened the ASEAN Leaders Gathering and co-chaired it with PM Lee.
ASEAN has also made progress in the achievement of sustainable development goals, he added, noting that extreme poverty had plunged.
"ASEAN leadership has agreed on how crucial it is to reduce the disparity and development gap between member states," said Mr Joko. "This is an important step in ensuring that no one is left behind."
Discussions about sustainable development took centre stage at the gathering, which also involved leaders from the United Nations, IMF and World Bank.
ASEAN will face a range of challenges on sustainable development, from economic restructuring and accelerating urbanisation to ageing populations, said PM Lee. "As we pursue economic integration, it is important that ASEAN also aligns our economic objectives with the 2030 Agenda for Sustainable Development so that our economic growth will bring tangible benefits to the 630 million citizens of ASEAN."
Sustainable development is a priority under Singapore's ASEAN chairmanship, added PM Lee.
The Republic will upgrade its technical cooperation centres in Vietnam, Cambodia and Laos, and has set up a new office, Infrastructure Asia, to facilitate implementation of infrastructure projects. This will help spur economic growth, he said.
PM Lee also urged his ASEAN colleagues to keep collaborating with international bodies, such as the IMF and World Bank, through regional and multilateral initiatives.
Mr Joko raised the importance of thinking about a mechanism for regional and global cooperation for post-disaster recovery.
He also encouraged using technology and innovative financing sources to achieve sustainable development goals. Setting out Indonesia's progress in sustainable development, he noted poverty has fallen to 9.8 per cent this year, while households' access to clean water is up by 76 per cent. He also stressed that the achievement of sustainable development goals requires "global leadership and shared responsibilities".
Related
Singapore tops World Bank Human Capital Index 2018
PM Lee Hsien Loong at the World Bank Human Capital Summit Dialogue with World Bank President Dr Jim Yong Kim -11 Oct 2018
MFA Press Statement: Singapore-Indonesia Leaders' Retreat, Bali, Indonesia, 11 October 2018 11 Oct 2018
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