Arsjad Rasjid Convinced ASEAN Investment Goals To Promise South Korea

JAKARTA - ASEAN Business Advisory Council (ASEAN-BAC) chairman Arsjad Rasjid assured that the ASEAN region is a promising investment destination for South Korea.

This was conveyed by Arsjad who together with the ASEAN-BAC delegation carried out a roadshow in Seoul, South Korea, on June 7-9, 2023 in the context of Indonesia's leadership at the ASEAN-BAC in 2023.

"ASEAN has many advantages over other regions. The geographical location of ASEAN is very strategic. We also have competitive human resources, abundant natural resources, and a large market," he said in a statement in Jakarta, Monday.

Arsjad said South Korea as the ASEAN-BAC speech partner continues to increase bilateral cooperation with ASEAN countries.

In fact, the Ginseng Country has placed Southeast Asia as one of the areas that has great economic growth potential as well as attractive markets for products and services, especially in the information and communication technology, manufacturing, renewable energy, infrastructure, tourism, and consumer sector sectors.

"We are on the same path and goal to continue to echo the increase in investment and trade in ASEAN. One of them is in terms of EVs and also the use of digital transactions such as QR codes," added the Chairman of the Indonesian Chamber of Commerce and Industry.

Arsjad also appreciated the South Korean government's strong support in its efforts to create an electric vehicle ecosystem in Indonesia, which was marked by the launch of a limited edition of the Ioniq 5 electric vehicle in March 2022.

Currently Hyundai is also building a new EV special battery system factory, namely Hyundai Mobis which is scheduled to be completed in the first half of 2024.

"Hyundai Group has invested 60 million US dollars to build a factory as the Hyundai Mobis business base, which is focused on the ASEAN market. Very proud, Genesis G80 and Ioniq 5 electric vehicles were designated by the Indonesian government as official vehicles at the G20 Summit in Bali in 2022," he said.

While in South Korea, Arsjad also met a number of government officials and leading business actors.

He also specifically invited them to attend the ASEAN Business & Investment Summit (ABIS) 2023 and the ASEAN Business Awards (ABA) 2023 in Jakarta on September 3-4, 2023.

In addition, in a meeting with South Korean businessmen, Arsjad also offered various investment opportunities in Indonesia, especially in the fields of energy transition, health, digital economy, and the construction of the Nusantara State Capital (IKN) mega project.

Arsjad said, Indonesia is the only country that has a special strategic partnership with South Korea among ASEAN countries.

The special partnership, he continued, gave birth to an agreement to create an electric vehicle (EV) and battery ecosystem.

In line with Arsjad, Deputy Chairperson of ASEAN-BAC Bernardino Vega revealed, Indonesia's gross domestic product (GDP) is around 80 percent of South Korea and the total stock market capitalization in Indonesia is only around 30 percent of what is in South Korea.

"This is an opportunity that we must take the best of our ability. Indonesia currently has around 4.6 million stock investors, which amount to less than 2 percent of the total population. This shows that there is still considerable growth potential," he said.