Arsjad Rasjid: ASEAN, a Promising Investment Destination

Jakarta, 12 June 2023Chair of ASEAN Business Advisory Council (ASEAN-BAC), Arsjad Rasjid, stated that ASEAN is a promising investment destination. ASEAN offers investment opportunities in industries, digital economy, infrastructure development, manufacturing, consumer sector, communication, electric vehicles and batteries, as well as tourism.

“ASEAN has many advantages compared to other regions. The geographical location of ASEAN is highly strategic. We also have competitive human resources, abundant natural resources, and a large market,” said Arsjad Rasjid during a roadshow in Seoul, South Korea, on Friday (9/6/2023).

The member countries of the Association of Southeast Asian Nations (ASEAN) consist of Brunei Darussalam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Arsjad stated that South Korea, as a dialogue partner of ASEAN-BAC, continues to enhance bilateral cooperation with ASEAN countries. Moreover, South Korea has recognized Southeast Asia as a region with great economic growth potential and an attractive market for products and services, especially in the sectors of information and communication technology, manufacturing, renewable energy, infrastructure, tourism, and consumer sector.

“We are on the same path and goal to amplify investment and trade growth in ASEAN. One of them is in the field of electric vehicles (EV) and the use of digital transactions such as QR codes,” said Arsjad.

 Arsjad, along with the ASEAN-BAC delegation, conducted a roadshow in Seoul from June 7 to 9, 2023, in the context of Indonesia’s leadership in ASEAN-BAC for the year 2023. During their stay in South Korea, they met with several government officials and prominent business figures. Arsjad specifically invited them to attend the ASEAN Business & Investment Summit (ABIS) 2023 and the ASEAN Business Awards (ABA) 2023 in Jakarta on September 3-4, 2023.

Investment Opportunities

During a meeting with South Korean entrepreneurs, Arsjad presented various investment opportunities in the energy transition, health, digital economy, and the development of the mega project of the new Indonesian capital (IKN).

Arsjad mentioned that Indonesia is the only country with a special strategic partnership with South Korea among the ASEAN countries. This special partnership has resulted in agreements to establish an electric vehicle (EV) and battery ecosystem.

In Indonesia, the development of a sustainable technology ecosystem is also being carried out by PT Indika Energy Tbk, Bakrie Group, and Mayora Group.

According to Azis Armand, Vice President Director and Group CEO of Indika Energy, the development of the electric vehicle ecosystem plays a crucial role in accelerating the transition towards sustainable transportation in Indonesia.

“The transformation to electric vehicles also needs to be accompanied by increased investment to strengthen electric vehicle facilities and infrastructure. This is part of Indika Energy’s mission in creating a comprehensive electric vehicle ecosystem in Indonesia,” said Azis.

Arsjad appreciates the strong support of the South Korean government in efforts to establish the electric vehicle ecosystem in Indonesia, as marked by the launch of the limited edition IONIQ 5 electric vehicle in March 2022. Hyundai is also building a dedicated EV battery system factory, Hyundai Mobis, scheduled to be completed in the first half of 2024.

“Hyundai Group has invested $60 million to build a factory as the foundation for Hyundai Mobis’ business, focused on the ASEAN market. It is remarkable that the Indonesian government has designated the Genesis G80 and IONIQ 5 electric vehicles as official vehicles at the G20 Summit in Bali in 2022,” he said.

Meanwhile, Alternate Chair of ASEAN-BAC Bernardino Vega, revealed that Indonesia’s Gross Domestic Product (GDP) is around 80% of South Korea’s, and the total market capitalization in Indonesia is only about 30% of that in South Korea.

“This is an opportunity that we must make the most of. Currently, Indonesia has around 4.6 million stock investors, which is less than 2% of the total population. This shows that there is still significant growth potential,” said Dino.

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