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.