The meeting also focused on strengthening the ASEAN+3 Macroeconomic Research Office (AMRO). The RFF aims to provide swift concessional financial assistance to low-income countries (LICs) facing urgent balance of payments needs.

“This time, we discussed the establishment of the Rapid Financing Facility (RFF), the reform of the Chiang Mai Initiative Multilateralization (CMIM), and strengthening AMRO,” Sri Mulyani wrote in an Instagram post on Friday, May 17, 2024.

Sri Mulyani provided historical context, noting that the Chiang Mai Initiative, named after the city in Thailand, originated from a significant meeting in May 2000.

This meeting was held during the annual Asia Development Bank gathering where ASEAN nations met with key partners Japan, China, Hong Kong, and South Korea, forming ASEAN+3. They agreed on a currency swap arrangement to support each other during financial crises.

“At that time, in 2000, the atmosphere in ASEAN and East Asia was still in disarray due to the devastating economic and banking crisis of 1998, especially affecting South Korea, Thailand, and Indonesia,” Sri Mulyani said.

The Chiang Mai Initiative evolved into CMI Multilateralization, amassing funds of US$120 billion in 2010, which increased to US$240 billion by 2012. Over the past 25 years, the initiative has adapted to the complex dynamics of regional and global economics and geopolitics.

Sri Mulyani emphasized the importance of preparing for ongoing and future challenges through regional and global cooperation.

“The world continues to change, becoming more dynamic, and old and new challenges will keep emerging. Indonesia’s younger generation must strengthen themselves to protect national interests and contribute to regional and global peace and cooperation,” she said.