ASEAN business urges economic integration

JAKARTA (JP): Private businesses in the Association of Southeast Asian Nations (ASEAN) called yesterday for further integration of the region's economy.

ASEAN Chamber of Commerce and Industry's (CCI) Chairman Aburizal Bakrie said here yesterday "closer business integration" was necessary to spur regional economic growth.

He said ASEAN businesses must work toward a "loosely united economic entity which builds on its present economic achievements".

"Such an approach recognizes ASEAN's regionalism and cooperation and stresses common interests while recognizing the different development needs of member countries," Aburizal said at ASEAN's CCI's presentation of its upcoming celebration of ASEAN's 30th anniversary.

Aburizal, chairman of the Bakrie Group, said ASEAN's vision would face challenges in the coming decade.

Among them was the evolution of a more competitive global economy from the trend toward a globalized and liberalized economy, he said.

Other challenges would come from previously closed economies such as those in China and south Asia.

These economies would not only capture a larger share of the world's trade but also its flow of financial resources and foreign direct investment, he said.

Other challenges to ASEAN would come from regional trade agreements such as the North American Free Trade Agreement and the Asia-Pacific Economic Cooperation, he said.

Meanwhile, ASEAN CCI's vice president Iman Taufik said yesterday cooperation between ASEAN businesses would help reduce the countries' deficits.

Long years of colonization meant Southeast Asian countries, except Thailand, conducted most of their trade with countries outside their region until the last five years, he said.

"For years, trade was always between the South and the North, and it left deficits," he said.

But in the past five years, inter-ASEAN trading had grown by 20 percent to over US$100 billion, he said.

This made up 18 percent of ASEAN trade in the global market, he said.

He said ASEAN expected the amount of trade between its member countries to increase to US$150 billion within the next 10 years.

ASEAN's CCI will commemorate ASEAN's 30th anniversary from Dec. 14 to Dec. 16. The event, called "A Private Sector Salute to ASEAN", will be held in Kuala Lumpur, Malaysia. (das)