Profits Make ASEAN Business Solid

KOMPAS/HENDRA A SETYAWAN

Indonesian Chamber of Commerce and Industry (Kadin) chairperson, Arsjad Rasjid.

The consolidation of business people in ASEAN member countries is a mission carried out by Indonesian Chamber of Commerce and Industry (Kadin) chairperson Arsjad Rasjid. Also holding the position of chairperson of the ASEAN Business Advisory Council (ASEAN-BAC) during Indonesia’s ASEAN's chairmanship, Arsjad has been making blusukan (impromptu visits) to ASEAN countries to integrate business and economic strategies in the region. The meetings discussed the development of renewable energy and the alignment of the economic and business strategies of Southeast Asia.

How does the ASEAN-BAC head translate his mission into economic and business strategies that are useful inclusively? The following are excerpt from a special interview on Friday (5/5/2023).

How do business and industry actors view the relevance of ASEAN to economic activities?

ASEAN is important for business and industry. The policy agreements taken by the governments at the ASEAN level will be carried out by the actors of the business and industry. Business people need to be at the front, namely through the ASEAN-BAC, which provides input in terms of business. Private-led [collaboration] is needed besides the government-led. While Indonesia holds ASEAN's chairmanship, the government and Kadin feel the need to see [the role] in a different way. The government requested that not only policies, but also actions are made.

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Kadin and the government discussed a similar step with the Business 20 (B20) forum when Indonesia hosted the Group of 20 Summit last year. The idea carries the concept of Indonesia Incorporated, which harmonizes the government with the private sector to the ASEAN level.

In the beginning, business people need to be invited to talk to and take the role of colead ASEAN because it will carry out an agreement signed by the government, including the matter of the ASEAN Economic Community [AEC]. I brought the idea to members of a business council [in ASEAN] and asked basic questions such as, Do we know what we want in ASEAN? Are you happy with ASEAN? Do you want the AEC to come true?" So, there needs to be a discussion beyond the business council because this institution is only represented by three people per country so it is difficult to get a real picture of their desires. In order to be inclusive, we visit every ASEAN country to meet institutions that resemble Kadin – business clubs and ministers in charge of trade, environment, agriculture and health.

So, it is important to first know what business people want in ASEAN so we can express the desires [of ASEAN business people] to developed countries that are state partners of ASEAN.

We believe business people can do it because they are more agile and flexible.

To be more inclusive, we also invite companies that want to be involved in discussions in the sectors that are of interest. Their involvement is important to maintain continuity. In this case, if there is no "money", business people do not want to be involved. There needs to be a cuan [profit].

What is carried in Indonesia's chairmanship in ASEAN-BAC?

The ASEAN motto today is Epicentrum of Growth. Business people agree and define the [region’s] growth epicenter as the biggest global growth in Asia, especially ASEAN. To enable this growth to provide benefits for ASEAN, we carry the centrality of ASEAN with a business approach.

Therefore, Indonesia's chairmanship in the ASEAN-BAC carries the theme of ASEAN Centrality: Innovating Toward Greater Inclusivity. That means in order to form centrality, innovation is needed. We believe business people can do it because they are more agile and flexible.

KOMPAS/M PASCHALIA JUDITH J

Chair of the ASEAN-Business Advisory Council (BAC) as well as General Chair of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid (six from right) and Minister of Trade Zulkifli Hasan (seven from right) after a consultation meeting between ASEAN-BAC and ASEAN Economic Ministers (AEM) ) in Magelang, Central Java, Wednesday (22/3/2023). The meeting is a series of the 29th AEM Retreat event on March 20-22 2023 in the context of Indonesia's chairmanship in ASEAN.

We also underline inclusivity which means that no one is left behind. This is important in introducing 5P values [peace, prosperity, people, planet and partnership]. Speaking of being inclusive, we don't need to wait for 10 countries to be able to join first. We are open to all member countries and invite them to be involved when they feel ready.

This inclusivity is also realized in the five priorities that we discussed in ASEAN, namely digital transformation, sustainable development, health resilience, food security and trade and investment facilities. The first three issues are similar to those in the G20 because Indonesia is the only ASEAN country that is part of the G20. These five priority issues present eight legacy projects that were previously seven legacy projects.

First, ASEAN QR [quick response] Code so that ASEAN can sustain local currency-based transactions, especially for micro, small and medium businesses. Second, Wiki Entrepreneurship as a 3M connectivity platform, namely mentor, market and money.

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The third and fourth are the ASEAN Net Zero Hub and the Carbon Center of Excellence. In addition, there are also Inclusive Closed Loop for food security, programs on health, ASEAN digital platforms and the ASEAN "One Shot" campaign.

Indonesia's export market share to ASEAN is not yet optimal. What are the challenges?

Human resources [HR] are a fundamental challenge. We can boast of demographic bonuses in the midst of digital transformation that can increase efficiency, productivity and become a stepping stone for workers, but without the suitable skills and education, employment will decrease. So, a breakthrough is needed. The right skills require standardization and their own committees. Technically, increasing HR capacity can be realized with reskilling and upskilling in addition to strengthening health and education.

In addition, Indonesia also needs to further utilize non-tariff barriers instruments to maintain trade. The illustration is there, of a country that releases imported products without tariffs. However, to reach the domestic market, imported products require a long process. As a result, once the imported products reach the market, there are already local products that are able to compete.

ASEAN must be able to become the host for its own region.

In the midst of geopolitical tension, how do you look at the ASEAN economic position?

In terms of market, ASEAN must be able to become the host for its own region. This market strengthening requires supporting policies and ecosystems. In terms of trade diplomacy, as we stated, ASEAN is open and not picky about which countries become partners. We still send supplies to China, the European Union, to the United States.

What is your view of the ASEAN 2045 vision?

We support it because business people need a vision at the ASEAN level that is aligned with Indonesia's ideals. In the formulation of the vision, we see the sectoral capabilities that are owned, for example in the electric vehicle sector and hydrogen-based energy development. After that, the supporting ecosystem needs to be discussed, such as the development of manufacturing that is oriented with value-added and competent human resources.

This article was translated by Hyginus Hardoyo.