ASEAN-Japan Agree to Strengthen Supply Chain and Energy

JAKARTA - ASEAN and Japan adopted a Joint Declaration of the Dialogue Task Force for Innovative and Sustainable Growth (DISG) to strengthen supply chain resilience, economic security, and energy transition amid geopolitical uncertainties and global economic dynamics.

The declaration was adopted at the 18th DISG meeting held in Bangkok, Thailand, as a guideline for economic cooperation between the ASEAN-Japan government and private sectors.

In a written statement received by DISG on Saturday, DISG Chairman Masuo Kuremura said the cooperation was focused on four main pillars, namely supply chain resilience, innovation collaboration, digital investment and artificial intelligence (AI), and energy transition.

"I emphasize the importance of intensive consultations with ASEAN countries to strengthen industrial resilience," said Masuo.

He also highlighted the success of the Fast Track Pitch program which attracted hundreds of participants from various countries, the holding of the Young Leaders Conference, as well as strengthening collaboration in the data center and semiconductor sectors.

In the energy sector, Masuo proposed the Asia Zero Emission Community Plus (AZEC+) scheme to strengthen decarbonization that is integrated with regional security through various concrete projects.

The meeting also discussed the effectiveness of Japanese investment in Southeast Asia.

The representative of the ASEAN Business Advisory Council (ASEAN-BAC) Brunei, Musa Adnin, assessed that Japanese companies have technological advantages, but face challenges in business execution speed and market penetration compared to competitors from China and Western countries.

In addition, a number of representatives of ASEAN chambers of commerce submitted recommendations, including recognition of expert labor from the Philippines, reintegration of migrant workers from Indonesia, and strengthening of supply chain traceability from Vietnam.

Responding to various inputs, the Japanese Ministry of Economy, Trade and Industry (METI) expressed its commitment to respond to the needs of business actors in the region more quickly.

The meeting was closed with the approval of the Joint Declaration of the DISG Task Force by the Chairman of the DISG Masuo Kuremura. The document contains concrete steps to strengthen the stability of the supply chain of important raw materials, economic security through semiconductor investment and artificial intelligence (AI), and accelerating the energy transition.

The declaration also encourages the acceleration of digital innovation for MSMEs and startups, as well as the development of young generation human resources to realize an inclusive and sustainable regional economic community.