Jakarta, September 4, 2023 – The private sector in ASEAN must also adopt an inclusive business model in addition to promoting cooperation and collaboration with other business associations to achieve a significant increase in the region’s digital economy up to two-fold.
“The implementation of the private business model needs to be in line with the new phase of digitalization with the launch of the ASEAN Digital Economy Framework Agreement. This implementation can also accelerate the sustainable economic agenda through the development of a regional electric vehicle ecosystem," said Coordinating Minister for Economic Affairs, Airlangga Hartarto, during the ASEAN Business and Investment Summit (ABIS) 2023 Plenary Session with the theme "Aligning ASEAN's Private Sector Priorities to the Global Agenda”, Sunday (3/9/2023).
According to Minister Airlangga, the private sector must also actively seize new growth opportunities, including maximizing relationships with local economic development, including micro, small, and medium enterprises (MSMEs). He emphasized that ASEAN cooperation is not merely a public sector effort, as inclusive and collaborative efforts by the private sector in various ASEAN agendas and initiatives are also key.
The ASEAN projects do not exist in a vacuum, as they are influenced by global dynamics, requiring active involvement from both the ASEAN public and private sectors. "That's why we need a stronger voice from the private sector to highlight and reduce the risks and costs of fragmentation in the global and regional supply chains driven by geopolitics. The public and private sectors need to work together, including with partners and other platforms, to uphold open, inclusive, non-discriminatory, and rules-based multilateral trade and economic architecture," said Coordinating Minister for the Economic Affairs, Airlangga.
Lastly, continued Airlangga, the ASEAN private sector needs to leverage private sector resources, networks, technology, and expertise to find solutions to socio-economic challenges and climate change in the region.
Innovation, diffusion, and adoption of technology also need to be supported and accelerated to enhance regional economic resilience and people’s welfare.
This is not without reason, as the ASEAN economy has shown positive performance over the past decade, with an average growth rate of 4-5 percent. Globally, ASEAN is the fifth-largest economy, the fourth-largest exporter, and in 2022, it was the second-largest destination for foreign direct investment (FDI).
The ASEAN economy achieved a growth rate of 5.7 percent in 2022 driven by high levels of domestic consumption, trade and investment. Industries such as electronics, electric vehicles and digital economy experienced an increase in investment last year, with total FDI inflows growth of 5.5 percent.
This was also the reason for the theme of Indonesia's ASEAN Leadership in 2023, namely "ASEAN Matters: Epicentrum of Growth", Indonesia took the initiative to respond.
These initiatives include strengthening regional market integration through the ASEAN-Australia-New Zealand Free Trade Agreement, introducing local currency transactions and digital payment interoperability, and promoting the ASEAN Industry Project Based Initiative.
ASEAN also needs to optimize the contribution of innovation and technology to enhance the regional economy and overcome existing and future socio-economic challenges. This aligns with this year's ABIS theme, "ASEAN Centrality: Innovating towards Greater Inclusivity."
"I would like to appeal the ASEAN private sector and the broader business community to actively contribute to the realization of the ASEAN Economic Community (AEC) 2025. And the ABAC, in particular, must be able to strengthen ASEAN by also strengthening interstate trade and collaboration in ASEAN," concluded Coordinating for Economic Affairs Minister Airlangga.
ABIS is part of series of the meetings of the 43rd ASEAN Summit, which will take place from 5-7 September 2023, at the Jakarta Convention Center (JCC) in Jakarta.
Indonesian President Joko Widodo will open the 43rd ASEAN Summit and chair 12 meetings. The series of meetings include the 43rd Summit held in plenary and retreat formats, the 26th ASEAN-China Summit, the 24th ASEAN-South Korea Summit, the 26th ASEAN-Japan Summit, and the 11th ASEAN-United States Summit.
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Photo caption: Coordinating Minister for Economic Affairs Airlangga Hartarto delivered a speech during the third plenary at the 2023 ASEAN Business and Investment Summit in Jakarta, Sunday (3/9/2023). Media Center ASEAN Summit 2023/Zabur Karuru/aw.