China Plays Strategic Role for Investment in ASEAN Region

China Plays Strategic Role for Investment in ASEAN Region

Selasa, 1 Agustus 2023 – 11:30 WIB

China – China plays a strategic role, especially for investment flows to countries in the ASEAN region because the country is currently also a big world economic, according to the Chairman of the ASEAN-Business Advisory Council (ASEAN-BAC), Arsjad Rasjid.

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China is listed as one of the largest sources of foreign direct investment (FDI) in ASEAN. In 2021, the value of China’s foreign direct investment in ASEAN countries reached US$ 13.8 billion. 

ASEAN member countries consist of Brunei Darussalam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

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“This is a remarkable achievement that should be appreciated. For decades, China has proven to be a key partner of ASEAN. I hope ASEAN-China will continue to maintain this close partnership,” Rasjid said in a statement on Monday.

Alhamdulillah, there are several commitments that have been agreed upon, one of which is the signing of a memorandum of understanding (MoU) with CCPIT and CCOIC regarding the renewal of cooperation between Indonesia and China in various business sectors under the auspices of KADIN (Indonesian Chamber of Commerce and Industry),” Rasjid explained.

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Moreover, Business meetings were held with business leaders in Beijing and Shanghai. The ASEAN-BAC delegation was there on July 25-27, 2023. The delegation’s presence is a series of roadshows in the framework of Indonesia’s leadership as Chair of ASEAN-BAC 2023.

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The entire delegation attended meetings with the China Chamber of Commerce for Machinery and Electronic Products (CCME), China Chamber of Commerce for Medicines and Health Products (CCCMHPIE), China & Globalization Center, China Council for the Promotion of International Trade (CCPIT), and China Chamber of International Commerce (CCOIC).

The delegation also met with Commercial Aircraft Corporation of China (COMAC), FinVolution Group, and Hycan. These meetings discussed their investment opportunities in ASEAN and Indonesia.

The cooperation discussed was related to the Indonesian and ASEAN aircraft industries. An Indonesian airline called TransNusa has been using COMAC-made aircraft for the Jakarta-Bali route as of April 2023.

The ASEAN-BAC delegation also invited Chinese government officials and business people to join the Business Investment Summit 2023 and Asean Business Awards 2023 to be held in Jakarta, on September 3-4, 2023.

Cooperation with China can be seen in Indonesia. Chinese companies are said to have ventured into the field of innovative, effective, and cost-effective new technologies. This is to accelerate the transformation of healthcare in Indonesia.

In the past decade, China has become a major source of life science innovation. This is because China excels in developing new products and cost-effective versions of complex products.

“China is at the forefront of biotechnology, genomics, and biotechnology innovations that will drive future health management. Chinese innovation brings hope to developing countries,” ASEAN-BAC Vice Chair Bernardino Vega said.

Indonesia and China also jointly facilitate an attractive market for the latest innovations. This includes life sciences products.

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“Admittedly, the biggest obstacle to China’s investment flow to Indonesia at the moment is regulatory issues. We hope there will be an agreement on regulations and reduction of barriers to open up the market for Chinese innovation products in Indonesia,”

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