Opening statement by Firman Hidayat

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.

                  Watch Now                  

Important notes and disclaimers

The information contained in this publication is given on a general basis without obligation and is strictly for information purposes only. This publication is not intended to be, and should not be regarded as, an offer, recommendation, solicitation or advice to buy or sell any investment or insurance product and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of investment or insurance products, if any, is qualified in its entirety by the terms and conditions of the investment or insurance product and if applicable, the prospectus or constituting document of the investment or insurance product. Nothing in this publication constitutes accounting, legal, regulatory, tax, financial or other advice. If in doubt, you should consult your own professional advisers about issues discussed herein.

The information contained in this publication, including any data, projections and underlying assumptions, are based on certain assumptions, management forecasts and analysis of known information and reflects prevailing conditions as of the date of the publication, all of which are subject to change at any time without notice. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this publication, United Overseas Bank Limited (“UOB”) and its employees make no representation or warranty of any kind, express, implied or statutory, and shall not be responsible or liable for its completeness or accuracy. As such, UOB and its employees accept no liability for any error, inaccuracy, omission or any consequence or any loss/damage howsoever suffered by any person, arising from any reliance by any person on the views expressed or information contained in this publication.

Any opinions, projections and other forward looking statements contained in this publication regarding future events or performance of, including but not limited to, countries, markets or companies are not necessarily indicative of, and may differ from actual events or results. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person. Investors may wish to seek advice from an independent financial advisor before investing in any investment or insurance product. Should you choose not to seek such advice, you should consider whether the investment or insurance product in question is suitable for you.