The Role of the Indonesian Government and Business Sector in Leveraging Opportunities in APEC 2013 for Economic Development in Asia Pacific Region
Medan, 12 June 2013 – Indonesian Ministry of Foreign Affairs and APEC Business Advisory Council (ABAC), a permanent high-level business advisory group created by Asia-Pacific Economic Cooperation (APEC), today jointly conducted a public lecture at North Sumatra University (USU) in Medan, North Sumatra. The public lecture was held to promote APEC and ABAC, and also discuss the roles of the Indonesian government and the business sector in bringing attention towards many opportunities for economic development in the Asia Pacific region. More than 100 members of USU’s academia attended the lecture, comprising of students from various faculties, lecturers, and staff members. Dean of the Faculty of Social and Political Sciences, Prof. Dr. Badaruddin, M.Si., made the opening remarks, prior to the lectures by Ambassador Wahid Supriyadi, Advisor to Minister of Foreign Affairs for Economic Social and Cultural, and Astara Lubis, Research Director of ABAC Indonesia.
“We warmly welcome the visit by Ambassador Wahid Supriyadi as well as the ABAC’s representative to our campus today to conduct a knowledge-sharing session with members of the university,” said Badaruddin in his opening speech. “At the beginning of its establishment, USU was prepared to be one of the centers of higher education in western Indonesia. USU is also one of the best universities in Indonesia, which houses 33,000 national and international students. I hope today’s lecture will provide us with useful insights and mark the beginning of a university-business partnership to support the objectives of APEC,” Badaruddin added.
In his remarks, Supriyadi discussed Indonesia’s strategic positioning as the host economy of APEC 2013. Supriyadi explained, “APEC is a high-level forum that facilitates economic growth, cooperation, trade and investment in the Asia Pacific region. As one of the APEC economies, Indonesia played a strategic role in 1989 in setting the direction of economic policy in the region. Additionally, since the deliberation of the Bogor Goals in 1994, Indonesia has continued to work towards achieving that vision and to become the ‘champion’ of the key APEC issues – not only in these past years, but Indonesia will continue to do so in the future ”
Supriyadi also said that Indonesia’s participation in APEC makes a huge responsibility. “As a country that has the potential to become the seventh largest economy in 2030, Indonesia is responsible for conducting dialogues with 20 other APEC economies to achieve consensus in the future.”
As the representative of Indonesian business sector, ABAC also shares Supriyadi’s views. “Since 2010, the world has gone through an era called “The Great Uncertainty”, which was predicted to last until the year of 2030. This era was marked by the slow growth in OECD countries over factors of demographic and debts, the emergence of the “middleweights”, the more expensive and volatile prices of resources, and the large potential for “disruptive” technological opportunities particularly in natural resources, as well as the increase of state intervention in markets,” said Astara Lubis.
“The change of the global economy has also created a shift in the economic growth in Southeast Asia. We have witnessed a significant shift in the global economy, whereby U.S. debt crisis is turning into fiscal crisis and the U.S. can no longer be seen as the engine of growth; European crisis continues with an enormous structural challenge to its whole financial system; and China and India – that used to be seen as the anchors of global growth – are now experiencing a slowdown that is expected to result in a growth below anything that has ever been achieved before. ASEAN, with Indonesia being the biggest economy, has shown a stronger and more robust climate, and will become the new centers of growth in the region,” Lubis added.
Regarding the correlation between the roles of universities, the business sector, and the government in promoting the economic growth, Lubis suggested that the relationship between the three integral actors in a public-private partnership context is the application of a ‘triple helix’ concept called the ‘ABG Concept’, which stands for Academic, Business and Government.
Lubis further conveyed, “In this ‘Academic, Business and Government’ concept, the industry operates as the locus of production; the government as the source of contractual relations that guarantee stable interactions and exchange; and the university as a source of new knowledge and technology – the generative principle of knowledge-based economies.” Lubis explained further, “The synergy between the three actors is a generative principle to develop a knowledge-based economy, which will help deepen the economic integration in the region.”
Today’s public lecture was a collaboration between the Ministry of Foreign Affairs and ABAC. This proves both the public and private sector’s commitment in the hope for the Indonesian young generation to be able to build a better future, especially in the economic sector.
“Universities will groom Indonesian future leaders 20 years from now, all of you who are sitting here today will be business or government leaders, prominent experts and leaders in various sectors. By saying ‘young demography’ it should not mean that our young generation is the kind that is busy with networking on social media. In fact, Indonesian young generation must become the driver to national productivity through flourishing entrepreneurship, creative economy, and other ways to enhance our competitive advantage at the global stage. We hope today’s lecture will mark the opening door for dialogues with young generation in order to raise their aspirations and encourage students to build interest and attention on in the processes of APEC and ABAC,” Lublis stated in her conclusive remarks.
APEC Business Advisory Council (ABAC) is a permanent high-level business advisory group created by APEC in 1995 by Asia-Pacific Economic Cooperation (APEC). ABAC was established in a realization that APEC policies affect wide range of business issues from trade and investment liberalization, labor mobility, access to finance, ease of doing business, infrastructure, food and energy security, etc. As a direct channel for business input to APEC, ABAC provides the platform for communication to APEC Leaders or governments. Therefore, ABAC Members have a role to identify issues and provide priority recommendations in business sector to achieve more effective policies and closer economic ties in the Asia Pacific region.
ABAC Members are appointed by leaders of the government from each of 21 APEC Economies. ABAC has 63 Members, comprising of 3 business leaders from each of the 21 APEC Economies, whereby one of the three becomes the economy’s Chair. The host economy’s Chair serves as ABAC Chair.
For ABAC Indonesia, the Presidential Decree by the President of Republic of Indonesia No. 79/M of 2012 dated 31 August 2012 officiated the appointment of three Indonesian ABAC Members. These members are: Wisnu Wardhana, Group Co-CEO and Vice President Director PT Indika Energy Tbk; Anindya Bakrie, Chairman PT Bakrie Global Ventura; and Karen Agustiawan, President Director and CEO PT Pertamina (Persero), with Wishnu Wardhana as the ABAC Chair 2013.
Please visit www.abaconline.org for more complete information on ABAC.
About APEC CEO Summit 2013
APEC CEO Summit is a premiere business event discussing most-pressing business issues and trends in Asia-Pacific and the global markets. APEC CEO Summit is usually held in conjunction with APEC Leaders’ Meeting, and it has become a main example for APEC to promote dialogue and cooperation between public and government sector.
APEC CEO Summit 2013 will be held in Bali, Indonesia on 5-7 October 201. The Summit’s theme of ‘Towards Resilience and Growth: Reshaping Priorities for Global Economy’ will provide enriching discussion by policy makers, business leaders and innovative thinkers on securing inclusive sustainable growth and achieving the aim of shared development and common prosperity for all. The main focus of the discussion will be revolving around priority issues that have been faced by business sector to achieve an inclusive sustainable growth for its members, which will be conducted through interactive discussions.
This year’s Summit will host ultimate concentration of “power” – Presidents and Prime Ministers – and global business and thought leaders. More than 1,100 top business delegates representing global businesses, with expected large delegations from China, Korea, Japan, the USA, and Indonesia, will attend this year’s Summit. During the APEC Week in Bali this year, 21 APEC Leaders will be in attendance, and most will address the APEC CEO Summit, and 10 organizational leaders that will be speaking at the Summit’s key panels.
Please visit www.apec2013ceosummit.com for more details on ABAC.
Ministry of Foreign Affairs
APEC CEO Summit 2013