Menko Airlangga and PM Anwar Ibrahim Agree to Push ASEAN-GCC as New Economic Powerhouses

Riyadh, INTI - Minister of Economic Affairs Coordination Airlangga Hartarto and Malaysian Prime Minister Anwar Ibrahim were invited by the World Economic Forum (WEF) to deliver opening remarks at the strategic dialogue between ASEAN and the Gulf Cooperation Council (GCC). In this dialogue, various ministers from other ASEAN and GCC countries also attended to discuss how these two regions can elevate their cooperation and pursue sustainable growth amid global uncertainties.

Prime Minister Anwar Ibrahim emphasized the significance of this dialogue as a moment to strengthen ASEAN-GCC cooperation, particularly in trade and investment. Moreover, Indonesia, Malaysia, and Laos are the "Troika" of this year's ASEAN Chairmanship. Troika ensures continuity and sustainability in the discussed issues. In 2023, Indonesia held the ASEAN Chairmanship with the theme "Epicenter of Growth." Following this, Laos holds the ASEAN Chairmanship in 2024, coinciding with the next ASEAN-GCC Summit, while Malaysia will hold the ASEAN Chairmanship in 2025. Therefore, regional cooperation is crucial, especially concerning domestic agendas like achieving Indonesia Emas by 2045 amid global economic slowdown and escalating geopolitical tensions.

To strengthen the Regional Comprehensive Economic Partnership (RCEP) previously established by ASEAN with several partner countries, Minister Airlangga proposed expanding RCEP's cooperation partners to include GCC countries. "ASEAN has a large trade bloc, namely RCEP, consisting of ASEAN + 6 countries. If we add GCC countries to this trade bloc, it will become the largest mega trade bloc in the world," Minister Airlangga stated. "This trade bloc can facilitate various cooperation potentials in trade, investment, digital economy, Islamic finance, MSMEs, and youth exchange," he added.

Minister Airlangga also underscored the need for a clearer and more concrete implementation of the next ASEAN-GCC Framework. Exploration of Free Trade Agreement cooperation needs to commence with GCC countries, while existing agreements need to be strengthened and expanded. This cooperation will undoubtedly create new investment and trade opportunities that will strengthen the economies of both regions. Essential sectors such as agriculture, energy, and tourism are crucial, considering the unique characteristics of both regions, including potential cooperation in energy transition, carbon storage, education, culture, and halal products industries. This cooperation will also contribute to enhancing food and energy security, while signaling to the world that ASEAN-GCC is a new economic powerhouse.

Previously, Minister Airlangga also participated as a panelist in the session "Labour Markets for the Next Generation" alongside other world leaders at the WEF Special Meeting on Global Collaboration, Growth, and Energy for Development.