Indonesia eager to become regional power through APEC

What benefit can Indonesia reap in hosting the Asia-Pacific Economic Cooperation (APEC) in Nusa Dua, Bali, after Indonesia spent some Rp365 billion from the state budget to host the international event?

How far can APEC extend its role in supporting the country`s economic and trade growth, when many countries are reinforcing their own domestic economies as a result of the on-going economic meltdowns?

"We want to leave traditional markets far behind, as there are many weaknesses there. We want to expand international cooperation. More open trade will benefit Indonesia," Arto Suryodipuro, director for Intra Asia-Pacific and Africa Cooperation of the Ministry of Foreign Affairs, told reporters on Thursday, as quoted by ekonomibisnis.suarasurabaya.net online media.

He said that today is no longer an era for Indonesia to continuously depend upon traditional products and traditional markets, but the country had to expand its market destinations with different products.

In developing its product diversification, Indonesia has to expand its economic cooperation and set its targeted markets. After all, about 56 percent of trade and business deals in the world are conducted in the Asia Pacific region, which hosts 40 percent of the world population.

So, Indonesia has the very reason to maximize its efforts at the APEC forum.

Therefore, according to Chief Economic Minister Hatta Rajasa, it is a great mistake if there is a belief that that APEC will not benefit Indonesia.

He said that holding the APEC summit 2013 in Bali gave great significance to Indonesia. The event can usher Indonesia into becoming a regional or even global power in the future.

Hatta noted that APEC and Indonesia`s position should be seen from a more optimistic perspective, rather than from a mere vocal angle, so that one could see the benefit and developments Indonesia could earn in the current global situation.

"There are three main priorities of APEC in Bali which serve the interests of Indonesia. The Bogor Goals, formulated by APEC in 1994, have created the spirit of trade cooperation, and the APEC summit in Bali will offer down-to-earth benefits to Indonesia," Hatta said.

The three priorities in the current APEC summit are Attaining the Bogor Goals, Sustainable Growth with Equity and Promoting Connectivity.

He said that about 75 percent of Indonesia`s trade was carried out with APEC economies. Further, Indonesia-APEC trade growth is higher than its trade growth with other countries outside the APEC region.

"These conditions encourage Indonesia`s position to become strategic. Therefore, we need to be optimistic with the spirit that Indonesia plays a strategic position as it seeks to become a regional power and also a global power," the coordinating minister for economic affairs said.

For Indonesia, the current APEC event could also create momentum to popularize its concept of a Master Plan for Acceleration and Expansion of Indonesia`s Economic Development (MP3EI).

The master plan includes infrastructure development projects in Indonesia`s different economic development corridors. 

This could lead to the opening of access for investment flow and access to markets, which could generate economic growth in the country`s regions, while increasing productivity of domestic industries. 

To this end, Indonesia has offered the member countries of APEC to work towards setting up a framework for development and investment cooperation in the field of infrastructure.

"We hope that APEC leaders at the meeting will later agree on a framework that will help boost infrastructure development and investment cooperation," Indonesia`s head of the Capital Coordination Board (BKPM), Mahendra Siregar, said.

He added that it was hoped that greater investment in infrastructure would boost connectivity among the common interests of APEC countries.

With regards to infrastructure development, Siregar stated that Indonesia`s public private partnership scheme could be used as a pilot project.

Hatta said by advancing its infrastructure, Indonesia will, in the end, increase its competitive edge. "So, our national interest will be reflected in the development of infrastructure, which would build our competitive edge. It will later create a condition between free trade and fair trade." Hatta said.

Therefore, Indonesia is convinced, with the holding of the APEC leaders meeting, that it will play a very strategic role in the region. 

The US, for example, has recognized Indonesia`s critical role as a partner country in the region.

US Secretary of State John Kerry said Indonesia is an important US partner in the region, noting that the US wishes to increase economic cooperation with Indonesia, which is considered one of the APEC members that has witnessed fast economic growth. 

"The US wishes to work more closely with Indonesia and other APEC countries," he said at a press conference here on Saturday. 

He added that annual economic growth of more than six percent has made Indonesia into one of the economies in Asia Pacific that has achieved significant growth, even at a time when a number of countries are suffering from a slowdown. 

Further, Kerry said Indonesia is one of the United States' most important partners because it has transparent and accountable trade regulations. 

"Indonesia has proven itself to be a significant partner for the US," he said. 

Indonesia, he added, is one of the largest exporters, with rich natural resources, and so is considered able to contribute to growth in the larger Asia Pacific region. 

US Secretary of State John Kerry arrived in Bali on Friday (Oct. 4) for APEC ministerial meetings and the APEC Summit, where he will represent President Obama.

Earlier, Special Presidential Staff of International Affairs Teuku Faizasyah told the press that President Obama spoke by telephone with President Susilo Bambang Yudhoyono at 8:15 a.m. local time on Friday.

Meanwhile, the APEC Secretariat, in a press release issued on Saturday, said South Korean President Park Geun-Hye, Canadian Prime Minister Stephen Harger, and New Zealand Prime Minister John Key have confirmed they will attend the APEC Summit, as well as hold bilateral talks with President Susilo Bambang Yudhoyono.

Park Geun-Hye is expected to arrive on Sunday (Oct 6) for the APEC Summit, as well as for a state visit to Indonesia from October 10-12, 2013.

Leaders of China, Taiwan and Mexico will also attend the summit. President Yudhoyono is scheduled to arrive in Bali on Saturday (Oct. 5).

Also, Peruvian President Ollanta Humama Tassom said on the sidelines of the APEC Summit that he will also hold bilateral talks with leaders, including those from Indonesia, South Korea and China.

APEC, which is made up of 21 economies, is holding its summit in Bali from October 1 to 8, 2013

Source: ANTARA