Geoeconomics Program for BKF: Emerging Economies Reshape Global Economic Landscape
Jakarta, 13 June 2024: ERIA’s Senior Economist, Dr Lili Yan Ing, presented at one of the panel sessions of the National Security College of Australian National University’s education program: ‘Geonomics’ at Ayana Midplaza Hotel. The panel session also featured HE Ambassador Dr Siswo Pramono, Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia to Australia and the Republic of Vanuatu. A day prior, the ‘Geoeconomics’ Program was opened by the Chairman of Fiscal Policy Agency of Indonesia’s Ministry of Finance, Dr Febrio Kacaribu, Deputy of Coordinating International Cooperation of Indonesia’s Coordinating Ministry of Economic Affairs, Dr Edi Pambudi, and Prospera’s Director, Dr David Nellor.
Dr Ing began by highlighting that over the last 50 years, the global economic landscape has experienced a dramatic transformation, with emerging economies overtaking the dominance of developed nations. She notes that this shift is reflected in key metrics such as GDP, trade in goods, and manufacturing value added. The rapid progress of countries like China, India, Indonesia, and the Republic of Korea, driven by continuous structural transformation and pragmatic government policies, has been the main catalyst for this change.
Dr Ing delved into several factors shaping the current global trade environment, including geopolitical tensions and the extended US–China trade conflict. Rising anti-globalisation sentiments, protectionism, and challenges facing the multilateral trading system are further complicating the economic landscape. Despite these challenges, ASEAN emerges as a region with significant potential, especially in the semiconductor and digital economy sectors, with a digital economy projected to reach US$1 trillion by 2030.
To harness its potential, Dr Ing emphasised that ASEAN must focus on solid macroeconomic and microeconomic foundations, optimise comparative advantages, and invest in digital and physical connectivity. Maintaining a neutral stance in trade and investment, leveraging ASEAN FTAs, and fostering a cooperative international trade environment are crucial strategies. As the global economy evolves, these approaches will help emerging economies like those in ASEAN sustain their growth and enhance their global economic influence.
Lastly, Dr Ing ended with a heartfelt message encouraging everyone to initiate change, no matter the scale. She emphasised the importance of starting small, particularly addressing the younger generation. Incremental changes can significantly benefit Indonesia and eventually the entire ASEAN region.
Dr Lili's presentation on ASEAN in the Global Economy
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