As a member of ASEAN, Indonesia has played an active role in the region’s economic cooperation. This cooperation among ASEAN member states provides numerous advantages for the Indonesian people. The following are a few of the advantages of this cooperation:

1. Increased Market Access: Through ASEAN economic cooperation, the Indonesian people can gain access to a larger market in ASEAN member countries. This facilitates the export of Indonesian goods and services to neighboring countries by both large and small businesses. With a larger market, business actors are able to scale up production, optimize factory capacity, and increase the competitiveness of Indonesian products.
2. Stimulus of Economic Growth: ASEAN economic cooperation encourages Indonesia's economic growth through increased trade and investment. Within the framework of the ASEAN Economic Community (AEC), efforts are made to establish a single market and integrated production in ASEAN. This creates a more favorable climate for investment and paves the way for foreign investors to invest in Indonesia. Foreign investment will increase infrastructure development, employment creation, and economic growth overall.
3. Transfer of Technology and Knowledge: ASEAN economic cooperation also entails the transfer of technology and knowledge between member nations. Through the transfer of technology, Indonesia can obtain access to the most recent innovations in numerous economic sectors. In addition, the exchange of knowledge through seminars, conferences, and training programs improves the competitiveness of Indonesia's human resources at the regional and international levels.
4. People's Welfare: The primary objective of ASEAN economic cooperation is to enhance people's welfare. This has the potential to create new employment and raise incomes for Indonesians by expanding market access and boosting investment. In addition, cooperation in the economic sector will have a positive effect on affiliated industries such as tourism, hotels, transportation, and other services, thereby fostering economic growth in the regions.
5. Harmonization of Policies and Standards: ASEAN's economic cooperation also includes the harmonization of policies and standards in a variety of sectors. This benefits the Indonesian people by simplifying trade procedures, removing technical barriers, and standardizing products. With the harmonization of policies and standards, intra-ASEAN commerce becomes more efficient and transparent, making market access for Indonesian goods easier. In addition, policy harmonization contributes to a stable and predictable investment climate, giving investors legal certainty.

ASEAN economic cooperation has a positive effect on Indonesian society as a whole due to these benefits. Higher economic growth, increased employment, and the transfer of technology in a sustainable manner all contribute to an increase in the population's welfare and standard of living. In addition, this cooperation promotes the growth of strategic industries like manufacturing, tourism, agriculture, renewable energy, and the digital sector.

To take full advantage of the benefits of ASEAN economic cooperation, the Indonesian government and business community must be committed and make continuous efforts. In order to increase domestic competitiveness and investment, the government must continue to pursue structural reforms, streamline regulations, and enhance infrastructure. Additionally, business actors must adjust to market shifts and capitalize on existing opportunities.

In short, economic cooperation between ASEAN nations provides numerous benefits to the people of Indonesia. In the context of enhancing the ASEAN Chairmanship in 2023, this cooperation will be strengthened further and provide more opportunities for inclusive and sustainable economic growth. By maximizing its potential and enhancing its competitiveness, Indonesia can transform ASEAN’s economic cooperation into a propelling force for its development and prosperity. In the midst of global challenges and competition, ASEAN cooperation provides a solid foundation for member nations to jointly face economic changes and bolster their position in the global economy.

In addition, ASEAN economic cooperation can offer Indonesia opportunities to become a regional production and investment hub. Indonesia can attract more foreign investment and expand its trade networks within ASEAN if it continues to develop its infrastructure and implement policies that support it. This will promote long-term economic growth and increase employment opportunities for Indonesians.

Furthermore, ASEAN economic cooperation affords Indonesia opportunities to participate in regional supply chains. Indonesian companies are able to participate in the production of components and basic materials utilized in other ASEAN member states as a result of the region's growing economic integration. This presents an opportunity to increase the added value of Indonesian products and enhance their global competitiveness.

In line with the spirit of the Sustainable Energy Transition proclaimed by Indonesia, ASEAN economic cooperation can also promote the growth of the renewable energy sector in member nations. During the ASEAN Ministers on Energy Meeting, member nations can share their experiences and knowledge regarding the development of renewable energy, the improvement of energy efficiency, and the reduction of greenhouse gas emissions. This not only has a positive effect on the environment, but also creates new business opportunities for Indonesian companies in the renewable energy sector.

Lastly, ASEAN economic cooperation can also increase member countries' bargaining power in trade negotiations with external partners. Through a mutually strengthened position, ASEAN nations can adopt a unified approach and pursue common economic interests in negotiations with non-ASEAN nations. This provides a strategic advantage for obtaining improved market access and bolstering negotiating positions in various regional and multilateral trade agreements.

In conclusion, ASEAN economic cooperation provides Indonesia with numerous benefits, including increased market access, economic growth stimulation, and technology transfer. As the chair of ASEAN in 2023, Indonesia will have a greater opportunity to optimize this economic cooperation to promote development and the welfare of the people. Through a commitment to and concerted efforts, Indonesia can take full advantage of the potential of ASEAN economic cooperation and strengthen its role as a propelling force for development and prosperity in the ASEAN region. (DA/FW)

Source:

• ASEAN Ministers on Energy Meeting (AMEM) - ASEAN Website
• ASEAN Plan of Action for Energy Cooperation (APAEC) 2021-2025 - ASEAN Website
• ASEAN Energy Outlook 2021 - ASEAN Centre for Energy
• ASEAN Economic Community Blueprint 2025 - ASEAN Website