T

he ASEAN-US Special Leaders'€™ Summit concluded Tuesday with the release of a joint statement entitled Sunnylands Declaration, which lays out key principles in moving forward with ASEAN-US cooperation. It, as expected, puts significant weight on the importance of ASEAN as well as other cooperation currently being pursued under ASEAN framework.

Such emphasis is made clear by underlining that respect and support is in place for ASEAN Centrality and ASEAN-led mechanisms in the evolving regional architecture of the Asia-Pacific. Further, the declaration explicates the shared commitment to enhancing collaboration at international and regional forums, especially through the existing ASEAN-led mechanisms.

In addition, the two parties expressed a shared commitment to the continuation of political dialogue at the head of state/government level through leaders'€™ attendance at the annual US-ASEAN Summit and the East Asia Summit (EAS).

It is interesting to discern in what manner the Sunnylands Declaration will mark the future role of Indonesia in ASEAN and, even further, in the wider context of East Asia or Asia-Pacific cooperation. The declaration is, in particular, expected to raise the profile of Indonesia under the ASEAN cooperation as the hub for various policy discussions, negotiations, formulation and implementation of relations to ASEAN, as well as its impact on the regional, inter-regional and global context.

In geopolitical aspect, Indonesia, as the biggest country in the region in terms of territorial size, with strategic location, has both contributed to maintaining regional political stability and played an active role in dispute settlement among the various countries in the region.

In this respect, it could be said that Indonesia is '€œthe natural leader'€ of ASEAN, a nation that can influence the direction of geopolitical developments. This leadership role has become increasingly demanding due to border disputes within ASEAN and the intensifying tensions caused by territorial claims in the South China Sea.

Meanwhile, in the context of the regional economy, Indonesia, currently the country with the biggest gross domestic product is, perhaps, the most stable economy in ASEAN. Indonesia also has the largest population, most of whom are considered to be of a productive age. This resource, human capital, will support productivity and has the capacity to drive Indonesian and regional economic activities.

In terms of ASEAN regional economic cooperation, Indonesia has also played an important role in deepening regional cooperation by putting in place innovative initiatives for equitable economic development framework, infrastructure cooperation framework through the establishment of the ASEAN Infrastructure Fund, taxation issues through the establishment of the ASEAN Forum on Taxation and a surveillance and monitoring regional integration process through the establishment of an ASEAN Integration Monitoring Office .

Indonesia also stands to play a key part in strengthening ASEAN exposure and its role in international forums. Indonesia, currently the sole ASEAN country representative at the G-20 forum, has already shown keen support for ASEAN participation in the G-20 meetings.

In addition, Indonesia regularly updates the ASEAN member states on the results of G-20 Meetings, in particular, on cooperation and initiatives related to economics and finance.

Indonesia has also been actively engaged in initiatives to strengthen ASEAN cooperation and its counterparts through, among other forums, the ASEAN+3 (ASEAN, China, Japan and South Korea), the Regional Comprehensive Economic Partnership (RCEP) framework and the EAS.

Due to the ever-increasing links and complexities of regional and global challenges, it is central for Indonesia to take a lead in developing a synergy between ASEAN and other forums of cooperation.

The inclusion of EAS in the Sunnylands Declaration may well be indicative of expectation. If that is the case, it is just a matter of time before Indonesia leads the way for a wider scope of cooperation within East Asia or Asia-Pacific.

The 2013 report titled '€œA US-Indonesia Partnership for 2020'€ pointed out that a long-term perspective on the part of US companies in Indonesia would allow the host country to reap the biggest economic development benefit, in partnership with the US, in terms of business relations.

This will occur if US investors take the leap into the Indonesian market, carry out the foundational work of choosing partners and are less risk averse in Indonesia, one of Asia'€™s most vibrant economies.

Indonesia should specifically take the lead to encourage or insist that US companies invest in areas outside of Jakarta. Working with cooperative local governments that are looking to further foster their cities'€™ growth as a regional economic hub, such as Surabaya, Bandung, Palembang and Medan, can surely offer US companies a less expensive high-yield investment.

It is the priority of the current administration of ASEAN member countries, including Indonesia, to provide alternative financing schemes that can cover the vast area of small and medium-scale enterprises, develop their domestic capacity, as well as to prepare businesses for further ASEAN Economic Community integration.

If expectations do not appear to materialize in the near future, there will be valid justification for Indonesia to lead a push for a review of the ASEAN-US partnership.
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The writer is an analyst for ASEAN policy at the Indonesian Ministry of Finance. The views expressed are his own.