43rd ASEAN SUMMIT 2023 (Epicentrum of Growth: The Opportunity for Indonesian Economic Growth)

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Oleh: Sarlianus Poma, S.Pd.,M.M
(Lecturer & Chief of Institute for Research and Community Services-LPPM at STIM Kupang )

AFTER success in a series of events at the 42nd Summit in Labuan Bajo, NTT, last May, Indonesia once again held the mandate to host the 43rd ASEAN Summit which was held in Bogor and Jakarta.

Efforts to build an inclusive and progressive global society in order to achieve ASEAN as the center of world economic growth are reflected through the themes carried, namely ASEAN Matters: Epicentrum of Growth.

The agenda for the 43rd Summit this month is quite different compared to the activities of the previous few months in Labuan Bajo. Not only was it attended by 11 member countries, this time the ASEAN Summit was attended by 11 additional countries.

Some of them are large countries such as the United States (US), Canada, Japan and China. Of course, this is ASEAN’s golden opportunity to improve the economy and friendship between countries. (Media Indonesia, 15/09/2023)
Carrying the theme ASEAN Matters: Epicentrum of Growth will focus on strengthening regional economies that grow fast, are inclusive and sustainable and can transform into regions that are committed to sustainable development goals. ASEAN plays an important role not only for countries in the region, but also for the world. Both have a central role as the motor of geopolitical stability and regional prosperity. Indonesia’s chairmanship in 2023 with the theme ASEAN Matters: Epicentrum of Growth is becoming increasingly relevant in becoming the anchor of regional stability and prosperity in the Indo-Pacific, by becoming a facilitator making ASEAN relevant and important, not only for the people of Indonesia, but also for the people of ASEAN and people outside ASEAN.
Indonesia as the host has the honor of being the Chairman or holding the position of Chair of ASEAN during 2023. Indonesia being trusted as the host is a matter of pride in itself. This is a Golden Opportunity for Indonesia to increase economic growth (Economic Growth). Indonesia’s trust in hosting the 2023 ASEAN Summit is due to Indonesia’s success in holding the G-20 Presidency event in 2022. Indonesia was successful and able to hold the G-20 Presidency in the midst of a situation that was not yet conducive, namely after the Covid-19 pandemic and the Russia-Ukraine war. The success of holding the G-20 Presidency (Indonesia G20 Presidency: Recover Together, Recover Stronger) has become a valuable foundation for carrying out international leadership by holding the 2023 ASEAN Chair in the midst of a world situation that is still facing various complex challenges.
When opening the 43rd ASEAN Summit, President Joko Widodo (Jokowi) started his conversation by raising global problems or issues facing the world today. This, like the global economy that has not fully recovered, rivalries are getting sharper, world dynamics are getting more and more unpredictable. President Jokowi then asked a question at the Summit forum, in the midst of the current complex situation and problems that are being faced by ASEAN countries and the world; will ASEAN only be a spectator? Will ASEAN just stay silent? Then, is ASEAN able to become the engine of peace and growth? Can ASEAN face a complex world situation filled with various challenges?
As the Chairman or holder of the ASEAN Chair for 2023, the President of Indonesia, Joko Widodo (Jokowi) believes that ASEAN is capable of facing all challenges, both on a local, national and global scale. With unity, Jokowi believes ASEAN is able to become a central player in bringing about world growth and peace, because ASEAN has economic growth that is above the world average and a demographic bonus. This belief can be realized if ASEAN is able to strengthen economic integration and inclusive cooperation. Thus, ASEAN will become a world growth center. In this position, Indonesia plays a very important role in consolidating all of ASEAN’s strengths, so that the world will loo

looks up to. Of course the expected results can only be felt in the medium term, but in the short term the benefits will be felt for each ASEAN country, especially Indonesia. One of the important issues that must be the focus of discussion at this summit is the development of new and renewable energy (EBT). Indonesia and ASEAN have enormous EBT potential. It is estimated that by 2035, 50 percent of the world’s electricity needs will come from EBT, and this requires 4 times the total installed EBT capacity in all ASEAN Countries (Opinion of Dr. Frits O Fanggidae, Pos Kupang, 09/05/2023). ASEAN’s ability to produce EBT is an important node to overcome the interruption of the supply chain of the world’s fossil energy due to political instability and world security. It is undeniable that in the midst of the threat of an energy crisis that hit the world due to the impact of the Russia – Ukraine war, the energy transition became an important topic of discussion at the 2022 G20 Presidency. It is hoped that this issue will be discussed again at the 42nd ASEAN Summit in 2023.
With the perspective of energy as a development capital, renewable energy has an important role in driving a green, sustainable and low-carbon economic system. Development with this long-term awareness has become a worldwide development trend, responding to the increasing population, human needs, and human activities that cause environmental damage. Indonesia has renewable energy potential that is spread throughout Indonesia, including solar energy sources, water and micro-hydro energy sources, wind energy sources, geothermal energy sources, ocean wave energy sources, and biomass energy sources. In the context of sustainable development, current energy consumption also has potential for energy efficiency and conservation.
Based on the Law Number 30 of 2007 concerning Energy, the National Energy Policy (KEN) is prepared based on the principles of justice, sustainability and environmental insight to support the creation of energy independence and national energy security. In the KEN, EBT targets are specifically set with a deadline of 2025 and 2050. Within these targets, the portion of EBT in the national energy mix must reach at least 23% in 2025 and at least 31% in 2050 as long as the economy is met. This target is equivalent to 45.2 GW of EBT power plants in 2025, the rest is contributed by biofuel, biomass, biogas, and coal bed methane (Founder of the Indonesian Legal Advocacy and Argument Center (PADHI), Tribunnes.com, 11/05/2023 ).

The presence of electric cars as the official means of transportation for the delegation of the ASEAN Summit in Labuan Bajo, shows how Indonesia has the readiness and ability to develop EBT-based industries. Therefore, with Indonesia’s position as Chairman of ASEAN 2023, various short-term strategic policies made can become significant incentives for the development of EBT-based industries in Indonesia. Likewise cooperation in terms of strengthening food production. Disruption of the world food supply chain due to the Russian-Ukrainian war, plus climate change has caused food prices to increase sharply, which until now has not been thoroughly addressed (Opinion of Dr. Frits O Fanggidae, Pos Kupang, 09/05/2023). This experience will make ASEAN countries need to consolidate, share resources and technology, to produce and implement a roadmap to strengthen ASEAN food production in the short term, so that inflationary fluctuations that come from outside can be dampened.
Epicentrum of Growth: The Opportunity for Indonesian Economic Growth. Taiwan-Indonesia Trade Analysis (TITA) analyst Tulus J Maha revealed that Indonesia’s chairmanship in ASEAN 2023 had many positive impacts for Indonesia. One positive impact is for the MSME sector. At this year’s ASEAN Summit, Small and Medium Enterprise (SME) is one of the priority sectors put forward. The government succeeded in taking advantage of the economic opportunities from the annual event. The holding of the 2023 ASEAN Summit is also a great opportunity to promote local Indonesian products. So that it has an impact on employment absorption.
The agenda for the 43rd Summit this month (5-7 September 2023) is quite different compared to the activities of the previous few months in Labuan Bajo. Not only was it attended by 11 member countries, this time the ASEAN Summit was attended by 11 additional countries. Some of them are large countries such as the United States (US), Canada, Japan and China. Of course, this is ASEAN’s golden opportunity to improve the economy and friendship between countries. (**)

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