Korea, ASEAN, Indonesia share future

By John A. Prasetio

John A. Prasetio

Dear Madam President-elect

The Association of Southeast Asian Nations (ASEAN) ambassadors in Korea came away from their meeting with President-elect Park Geun-hye on Jan. 14 with a consensus that indeed the new leader of Korea is down to earth, brilliant and a person of action. They have many reasons to continue to be optimistic about Korea in the next five years insofar as the new Korean leader has impressed them that she has all the traits to take Korea to the next level of economic success and to contribute to regional peace and prosperity.

ASEAN and Korea have enjoyed a symbiotic relationship. With annual trade volume of approximately $125 billion in the past two years, the association has become a top trading partner for Korea, second only to China. Considering the complementary structure of Korea and ASEAN economies, there is obviously a huge potential to further grow the trade volume between these Asian neighbors.

ASEAN has been the host of many key global summits, and the hub of increasing economic integration in Asia. Last November, in Phnom Penh, the United States has asserted its interest for closer engagement with the association by launching U.S.-ASEAN Enhanced Economic Engagement Initiative. Obviously apart from economic areas, ASEAN community building also has security and political dimension, as well as socio cultural pillar, as it aspires to create more prosperity, more security and more happiness for the people in the region.

Indonesia, the largest economy in ASEAN, is transforming at a rapid pace. Having approximately a $1 trillion Gross Domestic Product and the fourth largest nation with 240 million people, its young population is fueling the growth in consuming class, hence creating enormous business opportunities. According to a McKinsey report, by 2030 Indonesia could produce 125 million new consumers, and emerge as a substantial player in energy and agricultural production.

Under the leadership of President Yudhoyono, Indonesia has become an outward looking country, a champion in the Community of Democracies, a leading actor in carbon reduction initiatives. For him, Korea is a trusted friend, a strategic partner, and a country he knows personally well as he was a frequent visitor to Korea when his father in law served as the First Indonesian Ambassador to Korea 40 years ago. In fact, he witnessed closely the transformation of Korea in the ‘70s freeing its people from poverty and emerging as an industrial powerhouse.

The Indonesia-Korea relationship is currently at an all time high. The close chemistry between the top leaders of the two countries has played no small role on the overall tone of relationship. Indonesia has taken part in the development of a new generation of jet fighters in Korea, and has invited Korea to help revitalize its military industry. Top Executives of certain Korean companies have said their operations in Indonesia have been successful beyond their expectations and that they plan to reinvest their profits to expand their operations in Indonesia, a vote of confidence in the future of Indonesia and the future of bilateral Indonesia-Korea relations.

Today, the world sees Korea with great respect and Korean products in different light. In the past five years, many Korean brands have become globally well known and are associated with quality. K-pop and Korean entertainment have won the heart of many young people. Obviously, in the next five years, as a predominantly export oriented economy, the road to a new age of prosperity is not likely to be an easy journey. Korea has to deal with continuing global uncertainty and volatility. However, as China and ASEAN are expected to grow stronger in 2013, a deeper economic connectivity in the region could potentially unlock new opportunities which will be beneficial to Asia and the world.

Korea is a country that has staged a true economic miracle the world has ever seen: From being perceived as a hopeless case, destined to remain an economic backwater, to emerge as a leading global economy. With pragmatic political leadership in place, hard work, continuing sense of possibility and national pride, it is likely that Korea will continue to amaze the world.

John A. Prasetio is Ambassador of Indonesia and current Chairman of ASEAN Committee in Seoul.