ASEAN promising investment destination for S Korea: ASEAN BAC Chair


Jakarta, – Chair of the ASEAN Business Advisory Council (ASEAN-BAC) Arsjad Rasjid assured that the ASEAN region is a promising investment destination for South Korea.

This was conveyed by Rasjid, who along with the ASEAN-BAC delegation, conducted a roadshow in Seoul, South Korea, on June 7-9, 2023, within the framework of Indonesia’s leadership in the ASEAN-BAC 2023.

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“ASEAN has many advantages as compared to other regions. ASEAN’s geographic location is very strategic. We also have competitive human resources, abundant natural resources, and a broad market,” he noted in a statement in Jakarta, Monday.

Rasjid said that South Korea, as an ASEAN-BAC dialogue partner, continues to increase bilateral cooperation with ASEAN countries.

In fact, the Country of Ginseng views Southeast Asia as one of the regions with huge potential for economic growth as well as attractive markets for products and services, especially in the information and technology, manufacturing, renewable energy, infrastructures, tourism, and consumer sectors.

“We are on the same path and goal to continue to promote increased investment and trade in ASEAN. One of them is in terms of EV and also the use of digital transactions, such as QR codes,” the Chairman of the Indonesian Chamber of Commerce and Industry stated.

Rasjid also commended the strong support from the South Korean Government in the efforts to create an electric vehicle ecosystem in Indonesia, which was marked by the launch of the limited edition Ioniq 5 electric vehicle in March 2022. Currently, Hyundai is also building a new EV-specific battery system factory, namely Hyundai Mobis, which is scheduled to be completed in the first half of 2024.

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“Hyundai Group has invested US$60 million to build a factory as the basis for the Hyundai Mobis business, which is focused on the ASEAN market. It is very proud that the Genesis G80 and Ioniq 5 electric vehicles were designated by the Indonesian Government as official vehicles at the G20 Summit in Bali in 2022,” he remarked.

Furthermore, while in South Korea, Rasjid also met several government officials and prominent businesspersons.

He also specifically invited them to attend the 2023 ASEAN Business & Investment Summit (ABIS) and the 2023 ASEAN Business Awards (ABA) in Jakarta on September 3-4, 2023.

In addition, at the meeting with South Korean businessmen, Rasjid offered various investment opportunities in Indonesia, especially in the areas of energy transition, health, digital economy, and the construction of Nusantara’s National Capital (IKN) mega project.

Rasjid said Indonesia is the only country that has a special strategic partnership with South Korea among ASEAN countries.

He noted that this special partnership had led to an agreement to create an electric vehicle (EV) and battery ecosystem.

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Likewise, ASEAN-BAC Deputy Chair Bernardino Vega revealed that Indonesia’s gross domestic product (GDP) is around 80 percent of South Korea and the total stock market capitalization in Indonesia is only some 30 percent of that in South Korea.

“This is an opportunity that we must make the most of. Indonesia currently has around 4.6 million stock investors, which account for less than two percent of the total population. This shows that there is still considerable growth potential,” he affirmed.

Source Antara
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