Investment In ASEAN Grows Not Evenly, Bahlil: Only One Percent Of The Population Enjoys

ASEAN Investment Area Council Meeting in Semarang, Saturday 19 August 2023. (asean.org)

JAKARTA - Minister of Investment/Head of BKPM Bahlil Lahadalia revealed that investment in ASEAN countries is growing but not evenly distributed. In fact, said Bahlil, only some residents enjoy this innovation.

This was conveyed by Bahlil as the ASEAN Investment Area (AIA) of the Council Chair leading the 26th AIA Council Meeting in Semarang, Central Java, in Semarang, Saturday, August 19.

"In 2022, 60 percent of FDI entering ASEAN will only be enjoyed by less than 1 percent of ASEAN's population," he said in an official statement, Sunday, August 20.

According to Bahlil, the concentration of foreign direct investment (FDI) in a handful of groups will threaten ASEAN unity in the future. Therefore, said Bahlil, in the future ASEAN needs to further foster concrete collaboration in efforts to promote and invest facilities.

"The goal is that ASEAN can truly become a community, one house, one family," he said.

Bahlil said that the investment in ASEAN is in line with the theme "Indonesian Chairship of ASEAN 2023" that this area is the center of world growth or the Epicentrum of Growth. However, Bahlil emphasized the importance of prioritizing the principle of equal distribution of investment.

For your information, the 26th AIA Council meeting was part of the ASEAN Economic Ministers (AEM) Meeting which was attended by representatives from ten ASEAN countries in charge of investment issues. The United Nations Conference on Trade and Development UNCTAD is supported by the Government of Indonesia in compiling a study on the Special ASEAN Investment Report (AIR) 2023.

UNCTAD is an organization under the United Nations (UN) Secretariat that promotes the interests of developing countries related to trade and investment.

UNCTAD Investment and Business Division Director James Zhan presented the 2023 Special ASEAN Investment Report (AIR) which photographed ASEAN's investment growth in 2022, which rose 5 percent with a total investment of 224 billion US dollars.

According to James, this is the highest record in history in the midst of a world investment flow that fell by 12 percent in the same year. The decline in investment growth was dominated by developed countries driven by the Russian and Ukrainian war which resulted in an increase in food prices and world energy.

In stark contrast to the difference in investment flows to developing countries, which rose 4 percent with the flow of global investment as well as developed countries. The flow of investment into Southeast Asia has even increased by 5 percent beyond the global and developed levels. Southeast Asian ministers have succeeded in attracting investment into the region," said James.

The UNCTAD report also underscores the sharp increase in manufacturing growth in ASEAN. The year 2020 during the pandemic, manufacturing growth continued to grow to reach 11 billion US dollars.

While the whole world is also slumping due to the COVID-19 pandemic, UNCTAD considers the recovery in ASEAN to be fast. It is proven that in 2021 it will experience a 400 percent increase in growth to 55 billion US dollars and will still be able to increase in 2022 by 62 billion US dollars.