Technical Assistance I
The Ministry of Trade, with technical assistance from the European Union (EU)-funded ARISE+ Indonesia, conducted an analytical study on "Economic Policy Priority of the ASEAN Indonesian Chairmanship in 2023: Strengthening Regional Value Chains (RVCs)", aiming to provide strategic recommendations to ASEAN through Indonesia to develop ASEAN into a centre of Global Value Chains. The study findings on the potential of automotive, electronic, and health equipment sectors were presented and discussed with policymakers and stakeholders to increase the participation of ASEAN Member States in RVCs on Monday (31/10).
Strengthening Regional Value Chains (RVC) would lead to deeper economic integration in ASEAN that enhance resilience to economic shocks while also contributing to a stronger role of the bloc in the global economy.
Delivering an opening address, the Secretary-General for the Directorate General of International Trade Negotiation, Mr Ari Satria, said, "Indonesia is honoured to assume the ASEAN Chairmanship in 2023. Indonesia's chairmanship is expected to generate new ideas and initiatives in overcoming challenges and other crucial issues of concern in the region and the world."
Mr Ari also underlined the importance of the chairmanship of Indonesia to produce deliverables that are beneficial not only for the ASEAN region but also for national interests in particular and global interests in general.
The Head of Cooperation of the EU Delegation, Mr Thibaut Portevin, conveyed that the EU is keen to support Indonesia's Chairmanship of ASEAN in 2023 and that strengthening value chains and more broad connectivity between the EU and ASEAN has been the priority of the cooperation.
"The strengthened value-chains can contribute to a more efficient and integrated regional market that can also create trade and investment opportunities for ASEAN partners, including the EU, which is currently the biggest investor in ASEAN countries and the 3rd largest trading partner outside Europe," Mr Portevin said.
Speaking at the forum, the Director of ASEAN Negotiation of the Ministry of Trade, Ms Dina Kurniasari, presented the development of Free Trade Agreements and the Global Value Chain in ASEAN. She highlighted the importance of enhancing Regional Value Chains to improve the openness and competitiveness of the industries in ASEAN, which have been recognised by the ASEAN Member States. As ASEAN Chair in 2023, Indonesia will propose the establishment of ASEAN project-based initiatives to improve RVCs in ASEAN and enhance economic resilience. She said that ASEAN will set up a Focal Group on GVCs.
ARISE+ Indonesia International Trade Senior Expert Paul Baker, CEO of International Economics Consulting, presented a detailed analysis of trade flows in the automotive, electronic, and health equipment value chains, the participation of ASEAN Member States in each value chain, and the leading players in production processes. He also reviewed regional and national policies and protocols and provided recommendations pertaining to key policy areas such as the ASEAN integration framework and Non-Tariff Measures.
The forum featured prominent panellists, ranging from policymakers to business actors, namely Ruly Fitrah Nasrullah, the Deputy Director of Bilateral Cooperation at the Ministry of Investment (BKPM); Erlita Khadijah, the Deputy Director of International Access Industry at the Ministry of Industry; and Mufti Hamka, the Special Advisor to the Indonesian Chamber of Commerce (KADIN).
Speaking on the panel, Mufti suggested that more investments be made in Research and Development (R&D) in the industries to strengthen Indonesia's value chains in the respective sectors.
