ASEAN-BAC 2023 chair Arsjad Rasjid pointed out, “I believe we have made notable progress in promoting public-private cooperation, but it is crucial to understand that this is a continuous effort. We have made a good start but this journey is an ongoing process of growth and development.”

Arsjad, who is also the chair of the Indonesian Chamber of Commerce and Industry (Kadin), made the remarks in an interview following the conclusion of the ASEAN-BAC Summit 2023 in Jakarta.

According to Arsjad, the ASEAN-BAC Summit 2023’s focus was on the theme of "Innovating Towards Greater Inclusivity", with an emphasis on inclusivity, particularly concerning micro, small and Medium-sized Enterprises (MSMEs).

“Our discussions encompass two major issues, unlocking value and prioritizing the people’s welfare. To unlock value, we have focused on the potential of both the green and digital economies,” he pointed out.  

“In an era where sustainability and technology are paramount, we have delved into strategies to empower MSMEs by leveraging digital innovations and embracing environmentally sustainable industries,” he continued.

According to Arsjad, the well-being of ASEAN citizens has been another critical area of discussion, with a specific focus on strengthening food security and health resilience.

“This involves exploring strategies to address regional challenges related to food supply, distribution and nutrition, as well as those aimed at ensuring accessible and robust health infrastructure,” Arsjad noted.

“Lastly, beyond themes, we've also focused on the concept of inclusive collaboration, looking at how to bring all stakeholders, including MSMEs, into the fold of economic progress.”

“A key vehicle for achieving this is trade facilitation. This goes beyond streamlining processes; it also involves creating awareness among businesses about the opportunities and resources available to them.”

“When businesses are well-informed and empowered, they can actively contribute to their own growth, which, in turn, contributes to the overall advancement of the ASEAN economy.”

Regarding policy recommendations made at the ASEAN-BAC Summit, Arsjad revealed, “At the ASEAN-BAC Summit, several key policy recommendations were put forth, focused on harnessing technology, fostering knowledge sharing and promoting sustainability.”

“One of the central policy recommendations is the adoption of an ASEAN-wide QR code. This technology streamlines trading and promotes cashless transactions, promoting the ownership of e-wallets in the process,” he pointed out.

“For smaller businesses, the use of QR codes can be instrumental in building a digital footprint, which can then be utilized for credit scoring. This, in turn, enables MSMEs to have better access to the financial resources required for their growth and expansion,” he explained.

He said, however, that beyond policy recommendations, the ASEAN-BAC also recognized the need for the private sector to adopt a more active and complementary role.

“Thus, this year, the ASEAN-BAC has introduced legacy projects that harness the strengths of the private sector to support traditionally public sector initiatives,” he said.

“Toward this end, we have established Wiki Entrepreneur, a one-stop solution that serves as a dynamic knowledge-sharing hub, offering a wealth of resources and mentorship opportunities for both aspiring and established entrepreneurs in ASEAN. It is a conduit for the transfer of expertise, experience and innovative ideas, empowering MSMEs to thrive.”

“In summary, the policy recommendations emerging from the ASEAN-BAC Summit transcend conventional directives and embody a strategic vision rooted in the principles of inclusivity, innovation and sustainability,” he pointed out.

Immediate attention

Arsjad explained why each of the priority issues of Digital Transformation, Sustainable Development, Health Resilience, Food Security and Trade and Investment Facilitation discussed at the summit held urgency and why they all required immediate attention.

He noted that Digital Transformation and Sustainable Development offered the most potential for economic progress.

“It can propel ASEAN into the future, fostering innovation, competitiveness and economic resilience. Sustainable development ensures that growth is not only rapid but also responsible,” he explained.

“Both aspects are integral to the region's long-term prosperity and competitiveness, serving as a launchpad to becoming a global epicenter of growth,” he added.

“Health Resilience and Food Security are of paramount importance as they directly impact the welfare of ASEAN citizens. Health resilience ensures that nations are prepared to face health crises effectively, as seen during the COVID-19 pandemic, and food security is a fundamental human need, ensuring sustenance of our people,” he said.

“Lastly, with Trade and Investment, the urgency arises from the need to strengthen intra-ASEAN economic linkages. While ASEAN is a collective of strong countries, its true strength lies in unity. Thus, improving trade and investment among member states are crucial to ensure that ASEAN remains a resilient and formidable bloc,” he explained.

“In short, all our priorities are interrelated and contribute to the overall well-being and progress of ASEAN, collectively representing a comprehensive approach to building a stronger and more resilient ASEAN community,” he said.

The summit also featured the ASEAN Business Awards to honor innovations, sustainability and inclusivity that the winning companies have achieved.

Arsjad expressed the hope that the recipients would inspire other businesses within the ASEAN community to emulate their success, contributing to a greener, more ethical and resilient ASEAN business landscape.

In regard to a plan to establish ASEAN Incorporated (ASEAN Inc.), Arsjad said, “One notable [point of] progress is the establishment of a joint committee comprising the ASEAN Economic Ministers (AEM) and ASEAN-BAC. This partnership serves as a tangible symbol of the commitment to bridging the gap between the public and private sectors.”

According to Arsjad, with respect to ASEAN and Dialog Partners, the next steps are to deepen engagement and explore the new areas of the economy, namely digital and green economy.

“The next phase of the digital economy involves creating a comprehensive framework for collaboration within ASEAN and beyond, realizing the US$2 trillion potential of ASEAN's digital economy by 2030,” he noted.

“Equally important is the green economy, where ASEAN leaders have declared their intention to develop the regional electric vehicle (EV) ecosystem into a global production hub. This initiative not only aligns with global sustainability goals but also presents an opportunity for regional economic growth,” he explained.

Elaborating the potential that ASEAN has on the world stage, in accordance with the theme of the summit this year, Arsjad said ASEAN stood out as a beacon of economic resilience in a global landscape marked by challenges through its commitment to the principles of innovation, inclusiveness and collaboration.

Throughout 2022, ASEAN's economies demonstrated robust growth, showcasing dynamism and adaptability.

“Importantly, the outlook for 2023 remains positive, highlighting ASEAN's ability to weather economic uncertainties. ASEAN also occupies a strategic position at the heart of international trade due to its openness to inclusive collaboration,” he said.

“It is a pivotal player in two major free trade agreements, the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will enhance its economic reach and provide businesses in the region with unprecedented access to global markets,” he explained.

“Lastly, ASEAN boasts a demographic advantage with approximately 60 percent of the region's population being under the age of 35 and half of the ASEAN population joining the middle class by 2030,” Arsjad concluded.

Popular

Indonesia rolls out one-day remote work in push for energy efficiency

At the mercy of the market

Indonesia calls Israel death penalty law 'grave violation' of human rights