Amid global economic challenges, Ministers and CEOs from Southeast Asia and Latin America – home to leading emerging economies that consistently drive global growth – will meet in Jakarta for ASEAN Latin Business Forum 2012 on July 9-10, 2012, to discuss ways to expand their economic cooperation.

“With  strong  commitment  to  be  an  active  player  in  the  global  economic  architecture, Indonesia is well positioned to welcome trading and investment partners and to host such a high level and timely Business Forum. The imperative of the expanded cooperation is therefore simple. It has to be done now,” said H.E. Gita Wirjawan, Minister of Trade of Indonesia.

Minister Gita Wirjawan also added, “This opportunity should be used by both regions to strengthen economic cooperation by ensuring responsible flow of goods, services, capital, investment and  other  key  economic drivers. The  two regions certainly will  gain  a  better understanding of the volume and quality of business opportunities.”

Responding to global economic pressure and environmental challenges, it is more important than ever to develop understanding and a closer collaboration between members of the Association of South East Asian Nations (ASEAN) and Latin American and Caribbean (LAC) countries. The high complimentarity of the two regions with similar demographic profile, comparable population size of 580 million people, and with the projected regional growth of around 4-5% calls for strategic investment, exchange of knowledge and technology as well as key innovative strategies to further support its economic development.

Alongside Indonesian Trade Minister and Chairman of Indonesia Investment Coordinating Board, relevant economic ministers, vice ministers and director generals from Brazil, Peru, Mexico, Colombia, Argentina, Chile, Ecuador, Singapore, Malaysia, Thailand, and Myanmar will join captain of the industries from the two regions including Vale, Toyota Auto2000, HSBC, and Monsanto in this timely trade and investment forum.

They will also joined by KADIN, APINDO, ASEAN Business Advisory Council and leaders of industries such as ANZ, Newmont, Koppert, America Movil, Sinar Mas, Bakrie, and Garuda Food, by research institutes from the two regions including Uniao Brasilieira de Avicultura, Instituto de Pesquisa Economica Aplicada, Fundacao Getulio Vargas, and Singapore Environmental Challenge Organization, and by relevant economic authority of the region such as the Economic Institute for ASEAN and East Asia (ERIA). In addition, Ambassadors of Latin America & Caribbean countries will be participant in the discussion to further the economic cooperation.

H.E. Makarim Wibisono, Executive Director of ASEAN Foundation further shared that “Even before the expanding relevance and significance to the global growth, the economic linkages between Southeast Asia and Latin America continue to expand to an unprecedented degree. ASEAN Foundation supports this and many other avenues to further the economic cooperation through awareness building about each other, and most importantly, what’s possible.”

The rise of bilateral trade and investment and the increasing number of trade agreements between the two regions continue to reflect the growth perspective of the regions. Furthermore,        sustainable  economic development  has to take into consideration environmental risks and ecological scarcity. Thus, principles of green economy and its impacts have to be integrated into a business model and along the global supply chain in order to reach an equitable economic development. “Promoting entrepreneurship should therefore be conceived as immediate yet sustainable strategy. KADIN will do exactly that by providing members along with trading and investment partners in ASEAN and Latin American & Caribbean countries with ability to connect needs with interests,” said Suryo Bambang Sulisto, Chairman of KADIN.

Key recommendations borne by this Business Forum will drive the development of core and supportive  economic  platforms  and  the  creation  and  expansion  of  a  forward-thinking narrative for the cooperation of South East Asia and Latin America and Caribbean countries. “Acknowledging the global economic pressures and the impact that many countries including Indonesia is experiencing, we have to look at the recommended further actions to be done with realism and sensibility to the condition of our companies and their labors.” state Mr. Sofjan Wanandi, Chairman of APINDO.

 Backgrounds

• IMF has projected the global growth to be only 3.5% this year before bouncing back to 4.1% next year. Advanced Economies is expected to only grow 1.4% before reaching 2% next year, while Emerging and Developing Economies 5.7% this year and 6.0% next year. IMF further articulates that ASEAN-5 (Indonesia, Malaysia, Philippines, Thailand, Vietnam) is in particular expected to reach 5.4% growth this year - an increase from 4.5% the year before - and 6.2% next year while Latin American and the Caribbean countries 3.7% this year and 4.1% next year.
• With similar demographic profile and comparable population in the amount of 580 million in each region, GDP (PPP) of ASEAN is reaching USD 3.35 trillion while Latin American & Caribbean countries is USD 6.87 trillion.
• Top 5 Indonesia products being exported to Latin countries are rubber, footware, electronics, vegetable oils and manmade staple fibers while our top-5 imports from the Latin countries are residues/waste of food industries, sugar confection, cereals, slag/ash, and steel.