Jakarta, 3 September 2023 – The 23rd ASEAN Economic Community Council Ministerial Meeting chaired by the Coordinating Minister for Economics Affairs of the Republic of Indonesia Airlangga Hartarto agreed to propose four initiative documents to the 43rd Summit, 5—7 September 2023.
The four initiative documents include the Leaders' Declaration on Strengthening Food Security and Nutrition in Response to Crisis, Leaders' Statement to Develop the ASEAN Digital Economy Framework Agreement (DEFA), ASEAN Leaders' Declaration on ASEAN as the Epicentrum of Growth ASEAN Leaders', and ASEAN Blue Economy Framework.
"We also discussed preparations for Timor-Leste's participation in ASEAN. The Ministers fully support Timor-Leste’s participation in meetings and activities in the ASEAN Economic Pillar," said Airlangga.
The 23rd AECC meeting was attended by ASEAN countries' economic ministers and ASEAN Secretary General Kao Kim Hourn.
Several regional strategic issues, including the current global economic climate, were discussed at the meeting. The ministers agreed that the economic conditions were very dynamic and full of challenges but the region's economy was recovering rapidly and had surpassed its pre-pandemic state.
"ASEAN's total GDP is US$3.6 trillion in 2022. However, global economic projections indicate a slowdown and uncertainty. This is the challenge for economic development in the region," said Airlangga.
At the meeting, the ministers highlighted five crucial issues: geopolitics and supply chain fragmentation, green energy transition, digital innovation, and inclusive growth.
The ministers also agreed to enhance cooperation and economic integration among Southeast Asian countries to strengthen the regional trade and supply chain architecture.
The governments of each ASEAN country will make various policies to boost their nation’s competitiveness, resiliency, and structural reforms. The policy will support sustainability and digitalization while capitalizing on demographic changes.
The ASEAN region will be developed as a regional growth center and global growth engine. Furthermore, the region will be encouraged to become a significant investment destination and a competitive and reputable global production hub.
The ministers also discussed the formulation progress of the Post-2025 ASEAN Community Vision. It was agreed that the ASEAN Vision 2045 aims to make the ASEAN region "Resilient, Innovative, Dynamic, and People-Centered".
The next task is to develop a post-2025 ASEAN Economic Community (AEC) strategic plan. Four aspects to be considered include strengthening regional economic integration and resilience, technological transformation and innovation, economic sustainability, and community readiness for change.
According to Airlangga, the governments of ASEAN countries must be adaptive to the megatrend issue. The focus should be placed on digitalization and technology, climate change, demographic change, and competition for economic power. Then, ASEAN governments must support business conditions that have a real and favorable impact, including on MSMEs. The last point is the implementation that is efficient, effective, and productive.
"The ministers agreed to instruct all elements of related sectoral bodies to immediately develop a work plan to support the achievement of the ASEAN Vision 2045," said Airlangga.
There are three Strategic Thrusts in the economic pillar, namely Recovery Rebuilding, Digital Economy, and Sustainability, which contain 16 Priority Economic Deliverables (PED). The AECC meeting also discussed the development of the PED.
Currently, 11 PEDs have been completed, while the remaining five will be completed between October and December 2023 of the fourth quarter of 2023. In the PEDs discussion, Indonesia is pushing for increased competitiveness and connectivity and accelerating digital transformation and the sustainability agenda in the region.
To promote digital transformation, the ministers also agreed on a framework for negotiating the digital economy in the region. AECC was also successful in initiating the start of the ASEAN Digital Economy Framework Agreement (DEFA) negotiations. The first round will be held in November 2023 in Indonesia.
"It should be noted that the potential for the digital economy in the region is enormous and is projected to reach US$ 2 trillion by 2030. Negotiations will continue to be pushed to finish in 2025, so as to not lose momentum," said Airlangga.
The issue of sustainability is also a common concern in ASEAN. AECC also agreed to a carbon neutrality strategy. Each country must therefore oversee its implementation.
Indonesia proposed a discussion on the development of an electric vehicle ecosystem. The proposal was well received ASEAN member countries to immediately formulate a joint strategy for the development of the electric vehicle ecosystem in Southeast Asia.
The meeting also discussed the preparations for Timor-Leste's membership in ASEAN. The ministers support the full membership of Timor-Leste to participate in meetings and events in the ASEAN Economic Pillar.
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Photo caption: Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto makes a statement following the 23rd ASEAN Economic Community Council (AECC) Ministerial Meeting, Saturday (2 September 2023) in Jakarta. Photo: Ismadi/Infopublik