Sambutan Presiden RI pada The 3rd Asean-Latin Business Forum

Senin, 09 Juli 2012
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SAMBUTAN

PRESIDEN REPUBLIK INDONESIA

PADA

THE THIRD ASEAN - LATIN BUSINESS FORUM 2012

DI ISTANA NEGARA, JAKARTA

TANGGAL 9 JULI 2012

 

Bismillaahirrahmanirrahim
Assalamu'alaikum Warahmatullahi Wabarakatuh,

May Peace Be Upon Us All,

Excellencies Ministers from ASEAN and Latin America and the Carribean Countries,

Excellencies Ambassadors of Partner Countries to Indonesia,

Dr. Makarim Wibisono, Executive Director of the ASEAN Foundation,

Mr. Suryo Bambang Sulisto, Chairman of the Indonesian Chamber of Commerce and Industry,

Mr. Sofjan Wanandi, Chairman of the Indonesian Employers' Association,
Distinguished CEOs and Business leaders,

Ladies and Gentlemen,

I am delighted to be here, and to speak before the participants to the Third ASEAN-Latin American and Caribbean Business Forum. 

Let me first express my sincere appreciation, to the Indonesian Ministry of Trade, the Indonesian Investment Coordinating Board, and the ASEAN Foundation, for their collaboration in convening this Forum. 

I wish to welcome, in particular, our Latin American and Caribbean partners, who have travelled through several time zones to join us here. 

I hope you have overcome fatigue and jet lag, due to the long flight between our two continents.

Today, as it has always been, we are challenged by the geographical distance between our two continents. And yet you are all here, in the spirit of cooperation and mutuality. For that, I wish to commend all of you. 

Just a few days ago, I returned from my trips to Mexico, Brazil and Ecuador. I am impressed at the way the economies of these countries are thriving. I believe that this is true not only of the countries that I visited, but also of all countries of Latin America and the Caribbean. Everywhere in that region, you can see, the evidence of robust growth and economic dynamism. 

The UN Economic Commission for Latin America and the Caribbean (UNECLAC) has predicted, that Latin America and the Caribbean countries will grow by 4.1 percent this year. This is somewhat lower than the region's growth in 2011, which reached 4.4 percent. But this is already an achievement in itself, in view of the general decline in global growth. I am also impressed by the fact that, Latin America's collective GDP has just reached 6.87 trillion US dollars. 

In ASEAN, we are also enjoying rapid economic development. ASEAN managed to achieve a growth rate of 8 percent in 2010, and experienced a decline to 4.5 percent in 2011. But the economic growth of ASEAN countries in 2012, is projected to reach between 5 and 7.2 percent. Our collective GDP has reached 3.36 trillion US dollars. 

We are therefore looking at two dynamic regions. And these two dynamic regions have so much potential for collaboration, that we have yet to tap in earnest. ASEAN is home to 608 million people, while the population of Latin America and the Caribbean is just about as large: some 578 million. The two regions each have a total trade of around USD 2.5 trillion, but only 2.3 percent of that value represents trade between them. 

Foreign Direct Investments (FDIs) between the two regions remain low, compared to the total flows of their respective investments into other regions. This makes our Business Forum today particularly relevant. And this makes economic cooperation between ASEAN and Latin America and the Caribbean even more urgent, especially considering that we are in the midst of a slow-down of the global economy.

We cannot ignore the fact that despite encouraging developments in Greece and Spain, the crisis in the Eurozone is far from over. The OECD has predicted that the Eurozone will contract by two percent in 2012. As to the other regions, the World Bank has projected that growth in the Asia-Pacific will slow down from 8.3 percent in 2011, to 7.6 percent this year. The World Bank also estimates that developing countries will collectively grow by 5.3 percent this year, a decline from the 6.1 percent expansion last year. 

In what ways then, can ASEAN and Latin America and the Caribbean collaborate?

In answer to that question, let me share with you a few thoughts. 

FIRST, the countries of ASEAN and Latin America and the Caribbean need to develop connectivity, to bridge the distance between them. Otherwise, it will be difficult to realize the market potentials of the two regions. 

We can utilize existing frameworks of cooperation to boost connectivity. East Asia and Latin America have already been connected through the Forum for East Asia-Latin America Cooperation (FEALAC). And ASEAN has developed linkages with countries of South America, through the ASEAN-MERCOSUR Forum. These two forums can and must bridge our two regions. They must have developed networks of communication between our people. 

Second, the two regions need to develop ways of facilitating a two-way and mutually beneficial flow of goods, services, capital, and other key economic drivers. To increase trade between our two regions, we will have to resort to facilitation measures that address behind-the-border barriers. We also have to cut the cost of trading. This means reducing the true cost of exporting. And third, our collaboration must go beyond trade and investment. We must work together to promote sustainable development and the green economy. These are two areas in which our two regions have achieved excellent track records. 

Indonesia hosted the Bali climate change world conferences in 2007, and a few weeks ago, Brazil hosted the Rio+20 Summit. Furthermore, our regions share the equatorial climate and seasons, and boast an immense wealth of bio-diversity. We have the largest tracks of tropical rainforests, which serve as the lungs of the world. 

We are thus called upon to collaborate to realize a sustainable future-as envisioned by the theme of this Forum. Together we should see to it, that the countries of our two regions mainstream sustainability and the green economy, in our national development strategies. This massive effort is just too much for governments to carry out by themselves. Its implementation will require the participation of all stakeholders, including the business communities. 

In my view, there are at least two things that the business sectors of the two regions can do. First, businesses can begin sharing lessons learned and best practices, in the conduct of trade and investment. For this purpose, a regular channel of consultations should be established. Thus, I urge that you should not stop with this forum. I hope to see more gatherings of this kind regularly in the coming years.  And second, businesses need to become part of the trade and investment agenda within the existing frameworks of inter-regional collaboration. In this regard, I encourage the Forum of East Asia - Latin America Cooperation (FEALAC) and ASEAN- MERCOSUR, to ensure the involvement of the business communities in their work. 

This is the most auspicious time for ASEAN, in partnership with Latin America and the Caribbean, to take this kind of initiative. ASEAN has a strong commitment to cooperate with, as many countries and regional and international organizations as possible. This is in line with the spirit of the Bali Declaration on the ASEAN Community in a Global Community of Nations. 

 

ASEAN countries have become very closely integrated, in their quest to achieve the ASEAN Economic Community by 2015. ASEAN countries have formulated and are implementing economic strategies aimed at maintaining growth. These include various trade and investment agreements. By 2015, ASEAN expects to be a single market, in which there will be free flow of goods, services, and capital. 

As to Indonesia itself, we are optimistic about our economic prospects. Let me just give you their broad outlines: Indonesia's economy, which represents 40 percent of ASEAN's aggregate economy, is projected to grow by 6 to 6.5 percent this year. This is a realistic projection, considering that at the height of the global financial crisis in 2008, we managed to achieve a growth of 4.5 percent. Since then, our growth rate has been on the rise, while our debt-to-GDP ratio has shrunk dramatically, from 77 percent in 2001 to 24 percent in 2012. 

These elegant statistics have led to a rise in our credit ratings. Agencies such as Moody''s and Fitch Ratings have upgraded Indonesia''s Sovereign Rating to Investment Grade, and Indonesia's outlook to stable or positive. 

Indonesia is now the world's fifteenth largest economy by expertising Power Parity GDP. Our goal is to be among the top ten. The IMF has forecast that, Indonesia's economy will keep getting larger in the years ahead. Opportunities for investment in our infrastructures and industrial developments have also increased, due to our vigorous implementation of the Master Plan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI). We look forward to the participation of our Latin American and the Caribbean partners in this great undertaking. 

Excellencies,

Ladies and Gentlemen,

It is my ardent hope, that this third Business Forum will build a strong economic bridge, between our two regions. Thus my message to you is simple: "Seize the day!" Use this forum to identify the true potentials for trade, investment, and tourism cooperation amongst you. Use this forum to find business partners and conclude deals. Our similarities and complimentarities are fitting combinations.

There is a bright future ahead of us. Together let us launch our journey to that future. On that note, Excellencies, Ladies and Gentlemen, it is now my pleasure to, declare the third ASEAN-Latin Business Forum officially open. I wish you every success in your deliberations. 

Thank you.

Wassalamu'alaikum Warahmatullahi Wabarakatuh.

 

 

Asisten Deputi Naskah dan Penerjemahan,

Deputi Bidang Dukungan Kebijakan,

Kementerian Sekretariat Negara RI