ASEAN | ASEAN-BAC commends Thailand for harnessing FDI as road show continues
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Arsjad Rasjid, chair of the ASEAN Business Advisory Council (ASEAN-BAC), has said that Thailand has set an example for other ASEAN countries by harnessing the potential of foreign direct investment (FDI).
“As the chairman of ASEAN-BAC in 2023, I strongly support the strategic measures taken by the Thai government to facilitate ease of doing business for foreign investors. There are many areas of collaboration that can be explored between Thailand and ASEAN, as well as with Indonesia,” said Arsjad in Bangkok on July 7.
Memento Maxima Digital MarketingFDI plays a crucial role in the economic, industrial and trade development of Thailand. Within ASEAN, Thailand has also had among the most consequential business regulatory reforms, improving the regulatory process and reducing the time to start a business from 29 days to six.
Arsjad, along with the delegation, was in Bangkok from July 6 to 9, as part of a road show for Indonesia’s leadership in ASEAN-BAC for the year 2023. Previously, ASEAN-BAC conducted road shows in Malaysia, the Philippines, Singapore, Brunei Darussalam, Myanmar, the United Kingdom, Japan, South Korea and Australia. . (./.)
The ASEAN-BAC delegation met with government officials and business actors in Thailand. During the meetings, various priority issues of ASEAN-BAC were discussed, such as digital transformation in finance, sustainable development related to clean energy ecosystems like electric vehicles (EVs), food security in the region, strengthening healthcare infrastructure and, most importantly, enhancing investment and intra-ASEAN trade.
The delegation specifically invited government officials and business actors to attend the 2023 ASEAN Business Investment Summit (ABIS) and ASEAN Business Awards (ABA), which will be held in Jakarta on September 3-4, 2023.
Indonesian and Thai investment in ASEAN
In 2022, the realized investment in Thailand was US$20 billion, a 39 percent increase from the previous year. This growth was driven by foreign direct investment in the electronics sector, electric vehicle (EV) supply chains and data centers.
“Thailand has become a production location for international car manufacturers, such as Mercedes, Toyota and GWM, especially for electric vehicles. Thailand has grown into a magnet for foreign investors in developing electric vehicles in the ASEAN region,” explained Arsjad.
Furthermore, Arsjad mentioned that the ASEAN-BAC delegation under his leadership also provided recommendations for efforts to enhance investment in the agricultural and food sectors. ASEAN-BAC strives to increase more inclusive intra-ASEAN investment in both sectors. Legacy projects such as the Inclusive Closed Loop Model for Agricultural Products and the ASEAN One Shot Campaign have been developed.
Joint ventures
Regarding the development of the electric vehicle ecosystem, Arsjad explained that Indonesia shared the same interest as Thailand in producing EVs and automotive batteries. Joint ventures have been established through partnerships between Indonesian and Thai companies to strengthen the automotive supply chain.
“By integrating resources, technology and production capabilities, we can build an efficient and resilient supply chain in ASEAN for the global EV industry,” he said.
The strategic position of Thailand and Indonesia in the global automotive market, coupled with abundant natural resources such as bauxite and nickel, make both countries attractive investment destinations.
Meanwhile, Bernardino Vega, alternate chair of ASEAN-BAC, said an integrated QR code system had been established between Indonesia and Thailand. This created significant opportunities for micro, small and medium-sized enterprises (MSMEs) and the tourism industry among ASEAN countries, he added. ”
[Standardized QR codes] offer efficient and secure payment solutions and expand access to a broader consumer base in Thailand and Indonesia. Simultaneously, consumers in both countries will enjoy greater accessibility to various products. The integration of the QRIS [Quick Response Indonesia Standard] system in Thailand is an achievement of ASEAN-BAC in building the QR code payment system in ASEAN,” said Dino.
ASEAN-BAC has also formed close partnerships with companies in Indonesia to create an environmentally friendly business environment, such as PT Astra International, Indika Energy, Sinar Mas, Bakrie Group and Mayora Group. . (./.)
Indika Energy operates in the sustainable business sector.
“Indika has diversified its business beyond coal to end the use of fossil fuels. Indika has formed partnerships with Taiwan-based company Foxconn and three other entities to collectively invest $8 billion in producing EVs and batteries in Indonesia,” said Azis Armand, deputy CEO and group CEO of Indika Energy.
Sinar Mas, through Sinar Mas Agribusiness & Food, also strives to prioritize sustainability in its business processes.
“Collaboration with various parties is the key to success in running a business and expanding market share. Don’t forget, sustainability aspects must remain a priority,” said Franky Oesman Widjaja, chairman and CEO of Sinar Mas Agribusiness and Food.
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Inforial
The Jakarta Post
Jakarta
● Mon, July 10, 2023
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