ASEAN-BAC chair Arsjad Rasyid said that ASEAN-BAC had been strongly associated with the government but “starting this year, President Joko Widodo pushes for collaboration between the government and private companies in realizing regional economic integration through a people-to-people approach,” said Arsjad in a press conference in conjunction with the planned ASEAN-BAC Summit and ASEAN Business Awards 2023 in Jakarta on Tuesday, Aug. 8.

“The private sector is an engine of growth. Considering the crucial role business plays in the regional economic integration, we, ASEAN-BAC, strive to serve as a bridge that connects companies to other companies within ASEAN and ASEAN companies to ASEAN partners,” said Arsjad, who is also the chairman of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia).

“A people-to-people approach should come from the private sector. We want more private companies to take part, not only governments,” he told journalists.

Arsjad revealed that the Business Roadmap was a concrete endeavor that ASEAN-BAC made to contribute to the Indonesian ASEAN chairmanship’s 2023 vision and within the framework of drawing up ASEAN Vision 2045.

“I will hand over the ASEAN Business Roadmap Towards Epicentrum of Growth directly to President Joko Widodo. ASEAN-BAC builds real business, not a mere concept,” he remarked.

Arsjad stated that his side was ready to realize the ASEAN Business Roadmap Towards Epicentrum of Growth.

The ASEAN-BAC Summit 2023 will kick off on Sept. 1 and will run through Sept. 4. Several other events will also be held, including the ASEAN Fintech Roundtable and ASEAN Indo-Pacific Forum on Sept. 5-7 and the Indonesia Sustainability Forum on Sept. 7-8.

The event will feature 150 speakers and is expected to involve about 2,000 participants.  

In his presentation prior to the press conference, Arsjad revealed five priority issues, namely the Digital Transformation with legacies including ASEAN QR Code, Wiki Entrepreneur and Market Lending Platform; Sustainable Development with legacies including the ASEAN Carbon Center of Excellence and Net Zero Hub; Health Resilience; Food Security; and Trade and Investment.

According to Arsjad, ASEAN-BAC through the five priority issues and the project legacies have achieved significant results.

With respect to the digital transformation issue, Indonesia has to date connected to Singapore, Thailand and Malaysia under the ASEAN QR Code system. “So have Vietnam to Thailand and the latest one, between Thailand and Cambodia in 2023,” he said.

“This has driven micro-small-and-medium enterprises [MSMEs] to compete globally and spurred digital economic growth in the region, which is expected to reach US$133 billion by 2025,” he noted, adding, “Efforts are underway to encourage several other ASEAN countries to become digitally connected.”

Through the Wiki Entrepreneur legacy and Marketplace Lending Platform, ASEAN-BAC has successfully supported MSMEs in accessing the right information and financing their venture. A business matchup between the Japan External Trade Organization (JETRO) and Kadin Indonesia will connect MSMEs to Japan to share experience and best practices on Aug. 8-11.  Apart from that the ASEAN Mentorship for Entrepreneurs Network will also be ready to provide a training and seminar for MSMEs from Indonesia and ASEAN.

Regarding sustainable development, ASEAN-BAC has also obtained several results related to the legacy of the ASEAN Carbon Center of Excellence and Net Zero Hub. Related to the ASEAN Carbon Center of Excellence, the ASEAN Alliance on Carbon Market (AACM) has been established.

“With the AACM, ASEAN officially has its own carbon market. The ASEAN region has valuable carbon stock and can be invested. An improving carbon market can push for significant reduction of carbon from industry, boosting gross domestic product [GDP] through green investment and job opportunities. The sale of carbon to underpin decarbonization can amount to an estimated $1 trillion by 2037,” Arsjad said.

The Net Zero Hub, also driven by ASEAN-BAC, has encouraged collaboration among companies in ASEAN. The companies will share knowledge and best practices when efforts are underway to reduce greenhouse gas (GHG) emissions and achieve net-zero emissions.

On the issue of health resilience, ASEAN-BAC has collected various drug companies, vaccines and health infrastructure useful for enhancing health resilience in the region.

Regarding the food security issue, ASEAN-BAC has collaborated with various companies such as Sinar Mas Agro Resource & Technology (SMART) and other stakeholders engaged in the food sector including corn, palm oil and horticulture.  All of the parties involved will empower MSMEs and farmers, especially in sectors with resources and market access required for food resilience and sustainable farming.

Finally, the attainment of ASEAN-BAC through the ASEAN Business Entity as part of the priority issue of trade and investment. The important thing from the obtained legacy was commitment that companies have made such as Astra International, Sinar Mas and other companies to boost intra-ASEAN investment.

“ASEAN-BAC always pushes for the circulation of investment in the region and in that way ASEAN will not always rely on FDI. At the end of the day, the primary goal is to set up ASEAN Incorporated,” said ASEAN-BAC’s deputy chief Bernardino Vega.

Roadshow

ASEAN-BAC has completed its roadshow to nine ASEAN member countries and six of ASEAN’s partners, namely the United Kingdom, Japan, South Korea, Australia, Canada and China.

Under the Indonesian chairmanship, ASEAN-BAC 2023 raises the theme “ASEAN Centrality: Innovating Towards Greater Inclusivity”, a significant result that ASEAN-BAC obtained from the series of roadshows. The roadshows revealed great collaboration potential, trade connectivity and investment, the electric vehicle (EV) development ecosystem potential and the development of new and renewable energy (NRE).

The ASEAN-BAC roadshow has brought a fresh wind to economic diplomacy, confirming the organization’s commitment to forming a strong global alliance and expanding economic influence beyond traditional boundaries. The insight shared through the initiative reflects collaborative aspirations between ASEAN countries and ASEAN Dialog Partners to continually grow.

“Through the ASEAN-BAC roadshow, we are eager to strengthen close collaboration between ASEAN member countries and non-ASEAN partners. Through bilateral and trilateral collaboration, we see an opportunity to redefine our way of collaborating. We all take inspiration from our insights that we shared during the roadshow along with ASEAN-BAC partners, we intend to achieve inclusive future growth and shared prosperity,” Arsjad affirmed.

The press conference was attended by co-hosts of the planned ABIS sideline events 2023. They included Kadin Indonesia vice chairman for women’s empowerment as co-host of the ASEAN Weekend Market Tri Hanurita; ASEAN Women Entrepreneurs Network (AWEN) head Dyah Anita Prihapsari as co-host of  ASEAN Women CEO Forum; a JETRO representative as co-host of the ASEAN Future Generation Business Forum; Standard Chartered Bank chief commissioner Rino Donosepoetro as co-host of the ASEAN Climate Forum; the Investment Ministry/ Investment Coordinating Agency’s investment cooperation deputy Riyatno as co-host of the Investment Forum on Day 1; and Alpha JWC Ventures cofounder and general partner Chandra Tjan as co-host of the Investment Forum on Day 2.

PT Astra International, Indika Energy, Sinar Mas, Bakrie Group, East Ventures, Indofood, Mayora Group and MRT Jakarta, to name but a few, are companies that have supported Indonesia’s ASEAN-BAC 2023 chairmanship journey.

Expressing support for ASEAN-BAC, Indika Energy deputy president director and group CEO Azis Armand, pointed out, “ASEAN-BAC initiated project legacies, including the ASEAN Net Zero Hub and Carbon Center of Excellence, are aligned with our commitment to sustainable development. We strive to promote environmental management while pushing for economic progress and collaboration for a sustainable future.”

Also providing strong support was Sinar Mas. Sinar Mas Agribusiness and Food chairman and CEO Franky Oesman Widjaja noted, “MSMEs have a big potential to spur economic growth in the ASEAN region. Through an inclusive closed loop partnership, one of the ASEAN-BAC legacies in 2023, all the stakeholders including the government and private sector collaborate to consistently provide assistance programs for farmers and MSMEs.”

“They are given access to technology, financial literacy, financing and marketing. This way, they are able to boost productivity, enhance their competitive edge and rise to the next level,” he said.

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