The ASEAN Economy Is Predicted To Be Strong If Investment And Trade Are Managed Simultaneously

JAKARTA - Investment and trade are expected to become the lifeblood of the ASEAN countries' economy. Therefore, Chairman of the ASEAN Business Advisory Council (ASEAN-BAC) Arsjad Rasjid emphasized that the two currents are managed together to create prosperity.

"We cannot stand alone, ASEAN must realize the strength and potential investment it has to further strengthen ASEAN's position as a global investment haven," he said at the opening of the ASEAN Investment Forum 2023 in Jakarta, Saturday, September 2.

Present at the event were Minister of Investment/Head of BKPM Bahlil Lahadalia, Secretary General of ASEAN Kao Kim Hourn, Minister of Investment, Trade and Industry of Malaysia Tengku Zafrul Aziz, Minister of Finance and Economy Brunei Darussalam Awang Haji Mohd Amin Liew Abdullah, and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) Armida Salsiah Alisjahbana.

Arsjad revealed that Southeast Asia has promising investment potential and opportunities in agriculture and food, the digital economy, private-public health, electric vehicles, carbon markets, and regional QT payment systems.

The potential and opportunities he has, he continued, in his statement, make ASEAN a direct foreign investment target (foreign direct investment/FDI) and show a significant increase in recent years.

In 2010, FDI in Southeast Asia only USD 23 billion, but jumped to 47 billion dollars in 2021.

"In addition to investment potential, Southeast Asia also has a large advantage of natural resources to meet global energy demand," he said as quoted by ANTARA.

On the digital economy side, ASEAN also experienced significant growth, which in 2022, was recorded at 194 billion US dollars and projected to be 330 billion dollars by 2025.

Arsjad also said that with the existing investment potential and opportunities, ASEAN has strong economic fundamentals for sustainable development.

According to him, the ASEAN-BAC consistently continues to encourage the ASEAN Investment Forum or the ASEAN Investment Forum to strengthen the economic fundamentals to make the ASEAN region a global investment haven.

Under the leadership of Indonesia, he continued, ASEAN-BAC has carried out roadshows to ASEAN countries and external partners, such as the UK, Japan, South Korea, Australia, Canada, and China to offer investment potential and opportunities in ASEAN.

"We assure leaders and entrepreneurs that ASEAN must be taken into account because it has strong economic fundamentals and the ASEAN Investment Forum 2023 can be used as a momentum to strengthen ASEAN's position as a global investment haven," he said.

Arsjad added that the ASEAN Investment Forum was held to display ASEAN investment opportunities, which also contribute to inclusive and sustainable development.

Meanwhile, Bahlil Lahadalia, in his remarks when inaugurating the ASEAN Investment Forum 2023, said that in the midst of world conditions, which were not in good condition due to geopolitical tensions and climate change, ASEAN was a hope.

The International Monetary Fund (IMF) states that ASEAN is the horizon for global economic recovery with an average economic growth of 3.8 percent or above the global average of 2.6 percent.

In addition, ASEAN also showed the growth of FDI, which was currently on the global decline, ASEAN actually recorded the highest growth history as the second largest recipient of FDI in the world.

However, Bahlil said that ASEAN as an inclusive center for global economic development must encourage investment for sustainable development.

"The flow of investment to ASEAN is very massive, but our goal is not to increase the nominal value, but how the investment can realize sustainable development, especially SDG'S and the people can enjoy the results of investment," he said.

The ASEAN Investment Forum is held in a hybrid format, an on-site exhibition featuring a booth to showcase investment opportunities in ASEAN and facilitate meetings between investors and investment-seeking companies.

The main objective of the activity is to provide a platform for countries to showcase flagship investment projects to international investors and regional stakeholders, thus stimulating the FDI's flow to ASEAN.

By presenting their most promising initiatives, participating ASEAN countries can accelerate and increase the economic growth of infrastructure development, encourage innovation, and encourage job creation for themselves and the world.

The main theme of the Investment Forum will focus on food and energy security, inclusion and digital and financial advances, building a sustainable environment, and fostering deeper and impacted regional cooperation.

This is in line with the goal of Indonesian Chairship in 2023, which is to make ASEAN relevant and important to its people, the Indo-Pacific region, and the world.

The focus of the issue in the ASEAN Investment Forum 2023 is an investment that contributes to promoting gender equality, increasing access to health and vaccine services, sustainable development and resilience of the infrastructure climate, which, among other things, bridges the digital divide, supports environmentally friendly energy transitions, and the carbon market.

"ASEAN Investment Forum 2023 is prepared to function as a catalyst for regional economic integration and sustainable development," said Arsjad.