Kadin Boss Believes ASEAN Summit In Labuan Bajo Momentum To Grow Tourism And MSMEs

The view of the Meruorah Hotel in Labuan Bajo, East Nusa Tenggara (NTT), which is one of the main locations of the 42nd ASEAN Summit. (DOC. ANTARA)

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry and Chair of the ASEAN Business Advisory Council (ASEAN-BAC) Arsjad Rasjid believes that the 2023 ASEAN Summit which will be held in Labuan Bajo can be a momentum to strengthen tourism and MSMEs there as one of Indonesia's 5 Super Priority Tourism Destinations (DPSP).

Mrs. Retno, Minister of Foreign Affairs, in a press statement previously mentioned that later there would be several agreements in the meeting, one of which was the electric vehicle ecosystem. I see it as an opportunity for Indonesia to lead the energy transition in ASEAN," said Arsjad to the media, Saturday, April 29.

He continued, the Labuan Bajo Flores Tourism Authority (BPOPLBF) has prepared 1,156 rooms from 22 hotels and resorts in Labuan Bajo as a place to stay for delegates and the national committee of the ASEAN Summit. The government has also trained 112 Labuan Bajo MSMEs in digital marketing and marketing tourist villages accompanied by Bank Indonesia. These MSMEs are spread across several districts, one of which is West Manggarai.

In addition to the central and regional governments, the private sector also contributes to the development of the MSME and tourism ecosystem. Infrastructure development such as the Waterfront Marina Area, Tana Mori, to Puncak Waringin are examples.

"Infrastructure development in Labuan Bajo is already extraordinary for easy access to tourism and MSMEs. Of course, the benefits will not only be felt in the short term because the ASEAN 2023 Summit, but in the long term it will improve the tourism ecosystem in Labuan Bajo," said Arsjad.

Arsjad further added, the 2023 ASEAN Summit in Labuan Bajo will greatly impact Labuan Bajo's economic turnover. The Labuan Bajo Flores Tourism Authority (BPOPLBF) executive agency predicts that the increase in tourist visits and circulation of money will be equivalent to the implementation of the Mandalika MotoGP in 2022. The visit of 11 ASEAN Heads of State will bring 550 delegates. In addition, there are also committees and officers from the Ministry or related institutions as many as 300-500 people, coupled with security forces as many as 1,300 people.

"The number of delegates, committees and security officers will have an impact on the economic turnover which is estimated to reach Rp5 trillion," explained Arsjad.

He continued, the Ministry of Foreign Affairs (Kemlu) stated that there were a total of eight meetings with plenary and treatment formats to be held in Puncak Waringin, Labuan Bajo. On the sidelines of the main agenda of the ASEAN 2023 Summit, there were also discussions of regional economic cooperation such as Indonesia - Malaysia - Thailand Growth Triangle (IMT-GT) and Brunei Darussalam - Indonesia - Malaysia - Philippines East ASEAN Growth Area (BIMP-EAGA).

The principal of sustainable development is one that will be highlighted in Labuan Bajo. The Minister of Foreign Affairs of the Republic of Indonesia, Retno Marsudi, said that through the ASEAN 2023 Summit in Labuan Bajo, there are several things that will be agreed upon, one of which is the industrial ecosystem and trade in electric vehicles (EV) in ASEAN.

The agreement is projected to contribute to decarbonization efforts in ASEAN, where currently the herd accounts for 8 percent of the world's carbon emissions.

"The agreement of the electric vehicle ecosystem in ASEAN will greatly encourage ASEAN's economic growth and also encourage net zero commitments that can attract investment in the downstreaming of the EV industry ecosystem," said Arsjad.

In addition, according to Arsjad Rasjid, this agreement offers new business opportunities for the private sector in the green economy. This confirms ASEAN's commitment to the Paris Agreement for the purpose of net zero carbon.

"Indonesia specifically has the opportunity to become a country that leads the industrial ecosystem and trade in electric vehicles in ASEAN, with nickel resources reserves reaching a third of the world's reserves," concluded Arsjad.