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ASEAN Digital Economy Soars, Indonesia Pushes for Regional Trade and Technology Cooperation

  Editorial INTI     1 bulan yang lalu
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Jakarta, INTI - Amid the increasing complexities of the global economy, the Indonesian government remains committed to strengthening the country’s economy through international cooperation. In the latest move, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, held a bilateral meeting with Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, during the 24th ASEAN Economic Community (AEC) Council Meeting in Vientiane, Laos, on October 7. The meeting was part of the 44th and 45th ASEAN Summits, which also involved discussions on the progress of the digital economy and regional free trade agreements.

Key Agenda: DEFA Acceleration and Tech Pilot Program

One of the main topics of the meeting was the ASEAN Digital Economy Framework Agreement (DEFA), an initiative aimed at driving ASEAN’s digital economy growth. As a key proponent of this agreement, Indonesia aims to complete substantive negotiations by 2025, with an interim target of 50% completion by 2024.

The digital economy in ASEAN is growing rapidly, and DEFA is projected to boost the region’s digital economy value to USD 2 trillion by 2030. Indonesia, as a country with significant digital market potential, sees this agreement as crucial for strengthening the Southeast Asian digital economy.

Alongside DEFA, the Tech

Pilot program was another highlight of the meeting. The program, launched at the Singapore-Indonesia Leaders’ Retreat in April 2024, aims to increase mobility for professionals in the technology sector between Indonesia and Singapore. The program allows tech professionals to work flexibly between the two nations, creating more opportunities in the tech industry.

“This cooperation is expected to open more opportunities for tech professionals and improve Indonesia’s human resource capacity in the technology sector,” said Minister Airlangga.

Indonesia’s Participation in CP TPP

In addition to digital economy discussions, Indonesia expressed its interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP TPP). Singapore, a key member of CP TPP, welcomed this initiative and fully supports Indonesia’s bid to strengthen its participation in regional free trade agreements.

CP TPP is expected to complement the role of ASEAN’s Regional Comprehensive Economic Partnership (RCEP), one of the world’s largest free trade agreements. Indonesia’s inclusion in CP TPP would further strengthen the partnership, providing greater benefits for ASEAN member states as they navigate global economic challenges.

Global Issues: Middle East and Renewable Energy

In addition to discussing the digital economy and trade, the meeting also covered global strategic issues such as the conflict in the Middle East and the U.S. presidential election, both of which could impact global economic stability. The two countries also discussed renewable energy developments and green technology, which are increasingly gaining traction in Southeast Asia.

Both Indonesia and Singapore agreed to enhance their cooperation in green energy, recognizing the potential for this sector to generate new jobs and promote technological innovation. Sustainable energy is viewed as a key factor in ensuring both economic growth and environmental sustainability.

The economic cooperation between Indonesia and Singapore demonstrates both countries’ commitment to enhancing the ASEAN region’s global economic competitiveness. Discussions on DEFA, the Tech

Pilot program, and Indonesia’s potential entry into CP TPP are strategic steps toward this goal. In the face of global economic challenges, closer cooperation among ASEAN countries will be crucial to navigating economic and geopolitical shifts.

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