Geopolitical Tensions Make ASEAN Compete For Blessings With This One Country

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. ANTARA)

Minister of Finance (Menkeu) Sri Mulyani revealed that geopolitical dynamics involving China and the United States brought their own blessings to the ASEAN community.

According to him, this condition has the potential to bring economic opportunities to Southeast Asian countries.

The prediction is based on the opportunity for the transfer of production facilities from China.

"(The latest developments) show the opportunity of this geopolitical competition for ASEAN, especially capital outflows that become capital inflows in the form of foreign direct investment (FDI)," he said during a press conference as well as closing the ASEAN Finance Ministers and Central Bank Governments Meeting (AFMGM) agenda series in Jakarta, Friday, August 25.

The Minister of Finance explained that ASEAN is not a single candidate that can profit from China-US tensions.

He said that one strong country in South Asia is a strong candidate who can take advantage of this opportunity.

In this case, ASEAN is seen as a region that has the potential to be their relocation site. But of course, ASEAN and India are seen as places that can benefit from this situation," he explained.

The editor noted that the relocation of the industry from China to Southeast Asia generally targets Vietnam and Indonesia as the favorite destinations.

However, the large number of investment moves are believed to have entered Vietnam which was allegedly due to ease of licensing.

On that basis, in the last two years the government has been trying to reform regulations to create a more conducive business climate.

This commitment is proven by the presence of the Job Creation Law (Ciptaker).