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Über dieses Buch

This book examines Financial regionalism in East Asia has stimulated not only a new architecture for regional governance, but also a transformation in Indonesia’s national regulatory framework. As a relatively new phenomenon compared to trade regionalism, financial regionalism has successfully shaped cooperative networks among financial authorities in East Asia. In this incisive new book, Eko Saputro explores how new financial alliances and regulatory frameworks will allow Indonesia to rapidly take a new place at the global table, bringing the explosive growth that other Asian countries have seen to the archipelago nation. This book will be of equal value to academics, policy makers, students, and scholars, both in the region and abroad.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction: Indonesia and the Dynamics of Regional Financial Cooperation

Abstract
Indonesia has been involving deeply in the development of East Asian financial cooperation, particularly under the umbrella of ASEAN Plus Three (APT) Cooperation. It paid considerable attention to initiatives related to both liquidity support arrangements, bond market development, and financial market integration. Indonesian participation in financial cooperation has been led predominantly by state financial agencies, although there has been growing participation of Indonesian non-state actors as well. As one of important players in the region, Indonesia provides a laboratory to explore the political-economic dynamics of financial regulatory bodies in dealing with financial regionalism in the East Asia region. The participation of Indonesia in the regional financial arrangements not only should be viewed by economic calculation; but also consider political aspects at national and regional levels. In this regard, this study put domestic politics, power relations, and regulatory regionalism as an integrated approach to understand Indonesian responses toward East Asia financial cooperation.
Eko Saputro

Chapter 2. Explaining Financial Regionalism in East Asia

Abstract
Financial regionalism in East Asia is always complex, but not impossible to build. Due to its complexity, the development of East Asian regionalism has usually been viewed using three approaches—neo-realism, constructivism and neo-functionalism—that provide different understanding towards regionalism. These three approaches present two prominent elements of regionalism—power relations and domestic factors—that help examine national responses to East Asian financial regionalism. However, the existing approaches provide insufficient explanation of the critical issues related to regional–domestic interaction and internal transformation in response to regional financial arrangements remain unearthed. At this point, regulatory regionalism helps to explain the interaction between various levels of analysis.
Eko Saputro

Chapter 3. The Progress of East Asian Financial Regionalism

Abstract
Financial regionalism in East Asia has been developed based on the progress of financial initiatives under the auspices of the Association of Southeast Asian Nations (ASEAN), Asia-Pacific Economic Cooperation (APEC) and ASEAN Plus Three (APT) Cooperation. Therefore, to understand the evolution of financial regionalism in East Asia, the broader coverage of these three regional institutions should be observed. In this chapter, surveillance processes, regional financing arrangements, capital market development and financial service liberalisation, to make comparisons between the three regional institutions, are observed. In general, it is found that ASEAN and APT provide more concrete results, compared to APEC, in financial issues. It is also revealed that standardisation and policy coordination have emerged as prominent activities in these three regional forums.
Eko Saputro

Chapter 4. Domestic Politics in Indonesia and Financial Regionalism in East Asia

Abstract
Domestic politics matters in the regionalism process. The changes in domestic politics potentially shift the direction of a state’s involvement in the regionalism process. Such an examination on Indonesian political life is necessary to provide insights into, and a deeper understanding of, the changes in Indonesian domestic politics and their influence on Indonesia’s commitments to regional financial cooperation. This chapter provides an assessment of the three types of administration—non-democratic, transition and democratic—in Indonesia, to the development of financial regionalism in East Asia. It also provides analysis on the influence of democratisation on the process of financial regionalism at Indonesia’s national level. Specifically, this part analyses a new configuration of policy-making processes and policy coordination among relevant authorities.
Eko Saputro

Chapter 5. Power Relations, Bilateral Ties and Indonesia’s Responses

Abstract
Power relations between Japan and China are significant for the development of APT financial regionalism. In addition to power relations between major countries in East Asia, the development of regionalism in the region has been more or less influenced by bilateral relations. Bilateral ties among APT member countries remain essential in developing national responses to regional arrangements. Indonesian financial authorities have maintained bilateral ties with both Japanese and Chinese regulatory agencies, while also still collaborating on a regional basis. In this chapter, these mixed connections are understood to have developed the proximity, and shape the dynamics, of the political economy interactions and perceptions of Indonesian actors towards their Japanese and Chinese colleagues, which influenced Indonesia’s responses towards the progress of APT financial cooperation.
Eko Saputro

Chapter 6. Indonesia and the CMIM

Abstract
The establishment of Chiang Mai Initiative Multilateralisation (CMIM) has stimulated a new mode of regional governance, with three major indicators—the involvement of non-state actors, policy coordination and standardisation. Beyond this phenomenon, the establishment of CMIM has been perceived positively by Indonesian authorities, as an additional means to deal with any future financial crisis. To demonstrate their support for the regional initiative, the Indonesian financial authorities created a space in the national framework, by bringing the CMIM agreement into Indonesia’s jurisdiction. The intention to support CMIM has also been progressed through the adoption of several CMIM standards and mechanisms into Indonesia’s regulatory framework.
Eko Saputro

Chapter 7. Indonesia and the ABMI

Abstract
The development of Asian Bond Market Initiatives (ABMI) has also shaped a new regional governance in financial cooperation, particularly in regard to participation of non-state actors, standardisation and de-politicisation of regional financial arrangements. While Indonesia has presented the growing participation of its national non-state actors in the ABMI, the current status of the domestic bond market has determined that the Indonesian financial authorities provided only half-hearted support to the process of several projects under the auspices of ABMI. For Indonesia, ABMI projects, particularly the standardisation of market practices and the harmonisation of market regulation, had potentially hampered the developing Indonesian corporate bond market.
Eko Saputro

Chapter 8. Conclusion

Abstract
Indonesia’s responses to APT financial cooperation have been reflected in the internal regulatory transformation that was largely influenced by the institutional changes and policy coordination within Indonesia’s financial regulatory agencies. Drawing on an assessment of empirical development in Indonesia, this thesis revealed several major factors that influenced Indonesia’s responses to APT financial cooperation, including the domestic political economy, bilateral interdependence and perception, the nature of policy coordination, and the de-politicisation of regulatory agencies. As a proponent of financial regionalism in East Asia, Indonesia is predicted to further embrace regionalism in the financial sector. The democratic values of transparency and accountability tend to ease the way for Indonesian financial authorities and institutions in responding to further regional standards setting processes in financial areas.
Eko Saputro

Backmatter

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