ASEAN Business Advisory Council (ASEAN-BAC) Arsjad Rasjid said that his party continues to build business dialogue with the Philippine government regarding the potential for concrete partnership projects in three ways. First, the creation of added value for nickel and other mineral mines.
Second, support the forest regeneration agenda which is in line with the ASEAN-BAC heritage program. Third, increasing cooperation related to payment connectivity through the ASEAN QR Code program.
For the first project, as is known, Indonesia and the Philippines have the largest nickel reserves in the world. The two countries have around 33-40% of nickel ore reserves worldwide.
“Indonesia and the Philippines hold strong positions in terms of global nickel ore reserves. This provides a solid basis for working together and becoming a leader in the electric vehicle and battery industry ecosystem, both in ASEAN and the world," he said in an official statement, Jakarta, Wednesday (29/3).
With closer cooperation, the two countries have the potential to increase world nickel production by up to 50%. In addition, the potential for other mineral reserves for electric vehicles is also under the spotlight, so that ASEAN can become the center of the electric vehicle supply chain.
During the meeting, Indonesia stressed the importance of downstream for the successful development of the electric vehicle and battery industries. Indonesia recorded extraordinary achievements in the mining sector, particularly exports of nickel in the form of iron and steel, matte nickel and mixed hydrate precipitate, with an export value of US$20 million.
Another major achievement is Indonesia's nickel downstream which has succeeded in increasing the added value of commodities from US$1.1 billion to US$20.8 billion in 2021. An example of this success, said Arsjad, has made Indonesia encourage the Philippines to be able to participate in the successful downstreaming of the vehicle industry. electricity and batteries in the ASEAN region.
Later, Indonesia's success in the electric vehicle and battery industry can be attributed to the important downstream role that enables the development of a strong ecosystem in the sector.
"By sharing our experience with the Philippines, we hope to strengthen the partnership between our countries and promote sustainable economic growth in the region," added Arsjad.
Just for your information, the chairmanship of ASEAN-BAC seeks to make ASEAN a center for growth and the global economy. Especially, in emerging sectors such as green development and digital transformation.
One of the main beneficiaries of this agenda is MSMEs and the Philippines plays an important role as one of ASEAN's partners, as well as Indonesia. The strong economic partnership between Indonesia and the Philippines is evident in the collaboration between the two countries.
This partnership is demonstrated through the Philippines' investment figures which can reach US$14 million in Indonesia in 2022. Then, Indonesia's important role as an exporter of several commodities such as fuel, infrastructure, ore slag and ash to the Philippines with a value of US$5.92 billion in 2021.
On the same occasion, the Chair of the ASEAN-BAC Heritage Program for the ASEAN QR Code, Pandu Sjahrir, said that the quick response code (QR Code) would become a catalyst for financial inclusion and the development of MSMEs in the region. For this reason, the discussion on implementing a payment system using a QR code is needed to support MSMEs and cross-border transactions in ASEAN. Pandu also emphasized the importance of implementing a QR code system to promote smooth and efficient cross-border payments. This system has the potential to support MSME growth and facilitate cross-border transactions in the ASEAN region.
Meanwhile, Deputy Chair of ASEAN-BAC Bernardino Vega said, the establishment of the ASEAN-BAC Net Zero heritage program and the Carbon Center of Excellence, aims to create an ecosystem for the development of net zero and carbon markets.
ASEAN-BAC also continues to highlight great opportunities for forest regeneration programs. Bearing in mind, Indonesia and the Philippines have significant forest resources, approximately 91.2 million hectares and 23.3 million hectares respectively.
It is also estimated that the two countries will benefit from the increased demand for carbon credits, referring to the carbon market value which is estimated to reach US$50 billion by 2030.
Source: https://www.validnews.id/ekonomi/indonesia-ajak-filipina-konkretkan-kerja-sama-hilirisasi-nikel
