NTT – Indonesia holds the mandate as Chair of ASEAN 2023, a series of side events of the ASEAN Summit are underway, and the main event will soon be opened by President Joko Widodo.
President Jokowi said ASEAN must be able to become the center of world economic growth. At this year’s ASEAN Summit in Labuan Bajo, East Nusa Tenggara, President Joko Widodo wishes to be able to strengthen the economic growth of ASEAN countries so that they can overcome the conditions of the world economic crisis which until now has not shown stability due to a number of existing problems.
Indonesia’s economy in 2022 is able to grow solidly at 5.3% (yoy) and is targeted to be able to grow to 5.3% in 2023. The global economy itself in 2023 is expected to still face a number of challenges such as geopolitical tensions, global inflation, high interest rates, to the risk of tightening liquidity.
“Indonesia is also trusted to hold ASEAN Chair again in 2023 and at the same time it is an opportunity for Indonesia to navigate inclusive and sustainable growth in the ASEAN region. With the theme “ASEAN Matters: Epicentrum of Growth”, it shows the ability of the ASEAN region to become a center for world economic growth in the future, “said President Jokowi.
The ASEAN region has sufficient capital to become a center of world economic growth with a GDP reaching USD 3.36 trillion in 2021, thus making ASEAN the fifth largest economic region in the world. This is also supported by the total population in the ASEAN region which reaches more than 650 million people.
ASEAN’s level of trade with partner countries has also grown significantly, reaching 34% in the last decade. Meanwhile, the value of foreign investment entering ASEAN in 2021 will reach USD 179 billion with the highest growth in the financial and insurance sector, which is 32%. In terms of inflation, the majority of ASEAN countries will also be below the global inflation level in 2022.
Indonesia, in its Chair in ASEAN 2023, determines 16 Priority Economic Deliverables (PED) which are divided into 3 Strategic Thrust namely Recovery-Rebuilding, Digital Economy and Sustainability. Meanwhile, Indonesia’s main strategy to increase economic integration and strengthen competitiveness in realizing ASEAN as a center of economic growth is carried out, among others, through digital transformation by expanding local currency transactions and QRIS and accelerating negotiations on the Digital Economic Framework Agreement or DEFA.
“To encourage the improvement of these various achievements, ASEAN needs to take advantage of various economic cooperation in the region, both in the form of the ASEAN + 1 FTA and the Regional Comprehensive Economic Partnership (RCEP). RCEP, which was initiated by Indonesia in 2011, has created a new economic power, with the potential to make RCEP a competitive industrial base region in the world,” said President Jokowi.
Furthermore, by strengthening connectivity through increasing air and sea connectivity, encouraging the realization of the ASEAN Power Grid, and increasing food security through strengthening ASEAN’s supply chain and logistics system.
“There needs to be cross-sector cooperation to ensure food security in the region while at the same time building a strengthening mechanism for the early warning system,” President Jokowi added.
