Downstreaming And Transition Is The Key To Encouraging Economic Growth In Indonesia

Deputy Chairman and Chief Executive Officer of UOB Wee Ee Cheong (left). (Photo: Doc. UOB Public Relations)

JAKARTA - Development of downstream industries and the transition to a green economy in Indonesia will be the key to boosting growth and creating opportunities.

This strategy will help increase the added value of the national economy, environmental conservation, and create jobs for long-term growth. UOB Indonesia estimates that Indonesia's gross domestic product (GDP) will grow to 5.1 percent in 2023 and 5.2 percent in 2024 amid rising global challenges.

The reason is, in the midst of global trade conditions that are full of challenges, ASEAN has shown excellent performance compared to other developing countries.

Macroeconomic conditions and fiscal positions in the region have stabilized thanks to good governance and strong cooperation between member countries.

This creates a favorable position for ASEAN that can consolidate global supply chains from various global-scale industries so that they can become the main production base.

In welcoming the future, ASEAN must strengthen business and trade flows in the region.

Based on this directive, ASEAN's annual exports are expected to grow by almost 90 percent to 3.2 trillion US dollars by 2031.

UOB Deputy Chairman and CEO Wee We Cheong said the company's goal was to contribute to ASEAN's economic development and sustainable growth. UOB itself has a wide reach in the main ASEAN markets and strong representatives in China.

"The UOB has a proven track record in helping companies enter new markets in ASEAN, through established consultation services and local networks. For example, in Indonesia, we have supported around 100 companies to expand into this country in the last two years," Wee said in a written statement, quoted Thursday, October 12.

Along with the chairmanship of ASEAN this year, Indonesia is expected to be able to boost the regional economy in the future. This is supported by the consistent efforts of the Government of Indonesia in conducting broad structural reforms to create a good business environment and attract more foreign investors.

An example of this significant development is the ongoing efforts made by Indonesia in building domestic processing activities for downstream industries and environmentally friendly energy transitions that will create more value for the economy.

On the same occasion, UOB Indonesia President Director Hendra Gunawan said, amid global uncertainty, his party is optimistic that Indonesia will continue to grow along with the surge in foreign investment, especially in the basic metal industry.

This will encourage domestic trade and demand activities.

"We act as catalysts and drivers, between the government, regulators, investors, and the wider community in order to create growth for Indonesia and ASEAN. Together with UOB Group's long-term commitment in the region, we continue to help businesses to achieve maximum potential and navigate challenges by providing better solutions," he said.

Meanwhile, UOB Senior Economist Enrico Tanuwidjaja said Indonesia is the country with the largest economy in Southeast Asia with the most promising demographic bonus. Indonesia is also the strategic gateway to open up the regional economic potential.

"This is due to the superiority of the investment climate in the country. Indonesia is a competitive alternative manufacturing base and at the same time has strong domestic consumption, optimizing infrastructure, utilizing technology, and developing a new capital city," he said.

For your information, UOB Indonesia has held the UOB Gateway to ASEAN Conference 2023 event in Jakarta, on Wednesday, October 11.

Carrying the theme 'ASEAN Forging Ahead', UOB Indonesia brings together business leaders, customers, partners from other ASEAN countries, such as Hong Kong, Taiwan, and China together with government officials.

In this activity, Coordinating Minister for the Economy Airlangga Hartarto, Deputy Secretary General of ASEAN for the Economic Community ASEAN Satvinder Singh, and Deputy Chairman and Chief Executive Officer UOB Wee Ee Cheong were also present.

There were more than 600 participants attending the event.