Indonesia proposes broader use of renminbi in ASEAN

[Reashot Xigwin]

Bernama |

August 23, 2015 16:13 MYT

ASEAN economies are much more in tune with China's due to their proximity and trade relations, Indonesian Trade Minister Thomas Trikasih Lembong tells Bernama.
KUALA LUMPUR: Indonesia has proposed a broader use of China's renminbi in ASEAN's trade and investment to counter the impact of stronger US dollar.

"We want to push harder for a broader use of Chinese renminbi in the region," newly-appointed Indonesian Trade Minister Thomas Trikasih Lembong said.

This is because ASEAN economies are much more in tune with China's due to their proximity and trade relations, he told Bernama on the sidelines of the 47th ASEAN Economic Ministers' Meeting and Related Meetings here today.

Besides putting forward the proposal at the meeting here, Thomas said he planned to raise it to the broader economic team in Indonesia's Cabinet as well.

Going forward, he said the market was hoping that the US Federal Reserve would decide on their next course of action with regards to its interest rates.

"We are a few weeks away from it (the US Federal Reserve decision). We will see a major calm in the markets thereafter," Thomas said.

Meanwhile, he reiterated Indonesia's strong support to the ASEAN Economic Community formation on Dec 31, 2015. "ASEAN countries will be much stronger in confronting external headwinds when we pool our resources (together) as opposed to each one of us trying to fight it single handedly," Thomas said.

Indonesia proposes broader use of renminbi in ASEAN | Astro Awani

 

[dy1022]

 

[Daniel808]

Nice Step

 

[TaiShang]

Logical step. We should do more trade in our respective currencies, hence, stop paying for the US government each time we do a transaction using USD.

China's economies of scale and foreign trade volume do give it a leverage to push the use of the RMB. It is a win-win for ASEAN/Indonesia and China.

 

[prima99]

title should be Indonesia proposes broader use of renminbi, forget about the ASEAN. anyway, good luck to China.

 

[Tom99]

Hmm. sounds like someone is asking for regime change in Indonesia. lol

 

[Keel]

That is what a prudent and wise finance minster should do

Well done Indonesia.

 

[TaiShang]

INDONESIA PRESS-GM and China's SAIC begin construction of $700 mln factory - Jakarta Post
Aug 20, 2015

China-based automaker SAIC-GM-Wuling Automobile Corp Ltd, a joint venture between General Motors, SAIC Motor Corp Ltd and Wuling Motors, has kicked off construction of a factory in Indonesia worth $700 million, the Jakarta Post reported, citing Yuan Zhijun, vice president of the firm's Indonesian unit.

The plant is set to be completed in 2017, the newspaper reported.

 

[70U63]

All ASEAN members currency are very weak except SG (& Brunei).
So the proposed plan might be good to push poor ASEAN to higher level.

 

[IR-TR]

He's going to get an earful from the US

I do wonder though, is it me, or does it seem Indonesia is quite pro-China? At least not rabid anti-China like Vietnam. It seems Indonesia has a policy of military/political neutrality and does whatever is best for it's economy, meaning good ties with China. Good for Indonesia. Got to get that large 250 million population up and running. Islands and silly 'alliances' be damned.

 

[Economic superpower]

He's going to get an earful from the US

I do wonder though, is it me, or does it seem Indonesia is quite pro-China? At least not rabid anti-China like Vietnam. It seems Indonesia has a policy of military/political neutrality and does whatever is best for it's economy, meaning good ties with China. Good for Indonesia. Got to get that large 250 million population up and running. Islands and silly 'alliances' be damned.

Indonesia doesn't have ambitions to challenge China.

Problem with Viets is that they actually believe the propaganda brainwashed into them that Vietnam is a country that can hang with China on an equal basis.

 

[IR-TR]

Indonesia doesn't have ambitions to challenge China.

Problem with Viets is that they actually believe the propaganda brainwashed into them that Vietnam is a country that can hang with China on an equal basis.

Great for Indonesia. Fully focused on developing economically. And guess what, I'm sure China will get the HSR contract. The first of many. Great ties between the two countries!

 

[prima99]

He's going to get an earful from the US

I do wonder though, is it me, or does it seem Indonesia is quite pro-China? At least not rabid anti-China like Vietnam. It seems Indonesia has a policy of military/political neutrality and does whatever is best for it's economy, meaning good ties with China. Good for Indonesia. Got to get that large 250 million population up and running. Islands and silly 'alliances' be damned.

it's called the glory of being a Neutral country. don't be mistaken, murica get their shares too. defence framework with murica regarding SCS will be carried out soon, that is why make military base in Natuna Island just few miles away from Nine Dash Line.

when it comes to Indonesia, everyone wins.

 

[IR-TR]

it's called the glory of being a Neutral country. don't be mistaken, murica get their shares too. defence framework with murica regarding SCS will be carried out soon, that is why make military base in Natuna Island just few miles away from Nine Dash Line.

when it comes to Indonesia, everyone wins.

And Indonesia wins most Anxious to see where Indonesia is in 20 years.

 

[TaiShang]

it's called the glory of being a Neutral country. don't be mistaken, murica get their shares too. defence framework with murica regarding SCS will be carried out soon, that is why make military base in Natuna Island just few miles away from Nine Dash Line.

when it comes to Indonesia, everyone wins.

Indonesia is a respectable and reasonable partner. Wish all of China's partners would be like that.