RI-Malaysia Agree To Propose ASEAN-GCC Collaboration As A New Economy

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs of the Republic of Indonesia Airlangga Hartarto and Malaysian Prime Minister (PM) Anwar Ibrahim agreed to propose the collaboration of ASEAN and Gulf Cooperation Countries (GCC) as new economic powers.

In a statement from the Coordinating Ministry for the Economy quoted by Antara, Monday, April 29, this was one of the discussions at the World Economic Forum (WEF) Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, April 28-29, 2024.

Airlangga said to strengthen the Regional Comprehensive Economic Partnership (RCEP) which was previously established by ASEAN with several partner countries, he proposed expanding RCEP's cooperation partners with countries at GCC.

"ASEAN has a big purchase transfer, namely RCEP, which is ASEAN + 6 countries. If it is added to the GCC bloc trade, it will become the largest mega-trade blunder in the world," he said.

He assessed that the trade fault can facilitate various potential collaborations in the trade, investment, digital economy, Islamic finance, MSMEs, and youth exchanges.

Airlangga also underlined the next ASEAN-GCC Framework whose implementation must be clearer and more concrete.

The exploration of free trade agreement needs to begin with GCC countries, while existing ones need to be strengthened and expanded again.

This cooperation will certainly be a new investment and trade opportunity that will strengthen the economy of the two regions.

The agriculture, energy, tourism sector is an essential sector, considering that these two areas have their own uniqueness, including the potential for cooperation in the fields of energy transition, carbon storage, education, culture, and the halal product industry.

This collaboration will also contribute to improving food and energy security, as well as giving a signal to the world that ASEAN'S GCC is a new economic force in the world.

On the same occasion, Malaysian Prime Minister Anwar Ibrahim also identified how these two regions could rise to levels in interregional cooperation and face sustainable growth amid global uncertainty.

"This dialogue is very important as a momentum to strengthen ASEAN and GCC cooperation, especially in terms of trade and investment. Moreover, Indonesia, Malaysia, and Laos are the troika of the chairmanship of ASEAN this year," said Malaysian Prime Minister Anwar Ibrahim.

Troika itself is the concept of circulating the chairmanship of an event to ensure the continuity and sustainability of the issues discussed.

As for 2023, the chairmanship of ASEAN is held by Indonesia and carries the theme "Epicentrum of Growth".

Furthermore, in 2024, the chairmanship of ASEAN will be held by Laos, as well as coincide with the next ASEAN-GCC Summit moment, while in 2025, the chairmanship of ASEAN will be held by Malaysia.

Therefore, Airlangga continued, cooperation between regions is very important, especially related to the domestic agenda of reaching Indonesia Gold in 2045 amid the slowdown in the global economy and the escalation of tension in today's geopoliticals.