This opening address, given by M Firman Hidayat, the Deputy Coordinating Minister for Maritime Resources, Coordinating ministry for Maritime Affairs, was titled 'ASEAN Forging Ahead: Stronger Partnership towards Sustainable Growth.'

ASEAN’s robust growth has helped it to emerge as a significant driver of global economic expansion, exhibiting economic resilience. It ranks as the fifth-largest global economy, boasting a combined GDP of around US$3.7 trillion and housing over 670 million individuals.

Despite these achievements, short-term challenges include weakening commodity prices, particularly for nations heavily reliant on commodity-based exports. Moreover, the economies of ASEAN countries are impacted by the Chinese economic slowdown and the looming risk of recessions in the United States and Europe — both critical trading partners for ASEAN. Medium-term challenges include the ongoing US-China trade conflict, which disrupts global economic integration. Climate change-related issues pose significant additional threats, potentially triggering natural disasters with profound economic and societal implications.

Nevertheless, ASEAN's economy continues to thrive, as evidenced by its projected growth rates, surpassing the global average. This robust economic performance is a result of successful foreign direct investment (FDI) attraction in recent years, where inflows into ASEAN countries have steadily increased with 2022 seeing the highest levels in a decade, primarily in the financial and manufacturing sectors.

As an ASEAN member, Indonesia stands out with its strong economic performance. In addition to robust growth, it has maintained low inflation rates and displayed prudent fiscal discipline, with government debt accounting for less than 40% of GDP. Furthermore, amid rising Fed Fund Rates, Indonesia's stock index and exchange rate have demonstrated admirable stability, with economic growth supported by a post-pandemic consumption recovery, double-digit investment realisation, and increasing manufacturing output. Coupled with a healthy external balance, Indonesia has recorded 40 consecutive months of trade surplus and has managed its current account deficit, aiming for a surplus this year.

This exceptional economic performance is a result of a nine-year-long economic transformation. By transitioning from exporting raw materials to manufacturing downstream products, Indonesia has witnessed a tenfold increase in exports within a decade. This initiative has not only added value to the economy but also improved regional equity within the country, facilitating economic growth and enhancing the public’s welfare, particularly in Eastern Indonesia.

This transformation has also triggered technology transfer and human resource development. To meet the needs of its downstreaming programme, Indonesia has collaborated with institutions to increase the number of metallurgy graduates and enhance human capital. Collaborations with universities, including China Southern University and ITB, aim to foster technology transfer and skill development through sending Indonesian students to study advanced metallurgy programmes.

Increased collaboration with ASEAN partners in various areas, including electric vehicle development and digital ecosystems, holds immense potential. By jointly supporting these programmes, ASEAN can unlock digital opportunities, empower SMEs, and drive economic growth. The Digital Economy Framework Agreement in ASEAN is expected to double the value of the digital sector from an estimated US$1 trillion to US$3 trillion by 2030, benefiting SMEs and enabling the upskilling and reskilling of the workforce.

Implementation of these programmes requires substantial investment, particularly in green infrastructure. Estimates suggest that over US$3 billion of infrastructure investment is needed to achieve sustainable economic growth and address climate change.

In conclusion, Indonesia is on track to become a high-income country by 2045 thanks to its economic transformation in the past nine years. Moving forward, the nation has a clear strategy that encompasses industrialisation, decarbonisation, interconnectivity, digitalisation, education, and equitable economic distribution to achieve sustainable and inclusive growth — with Indonesia as a nation, committed to working closely with ASEAN to advance economic development and decarbonisation in the decades ahead.

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