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Opinion | How Hong Kong can deepen engagement with Indonesia, Asean’s largest economy
- Indonesia, a core pillar of Asia’s future, has big plans that Hong Kong can support, as a centre of trade and finance with green compliance expertise
- Stronger cultural, tourism and academic ties will also complement China’s strategic partnership with Indonesia
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As Hong Kong reopens, we must seize the moment for meaningful re-internationalisation and the 10-member Asean bloc, our second-largest trading partner, is a linchpin.
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Within the Association of Southeast Asian Nations, Indonesia is the largest economy. It is the world’s 10th-largest economy in purchasing power parity terms and poised to become the fourth-largest by 2045; Indonesia’s strategic importance is only increasing. The International Monetary Fund expects its economy to grow by 5 per cent this year, close to China’s 5.2 per cent projection.
It makes good sense for Indonesia and Hong Kong to have a constructive and symbiotic relationship. Both are known for their open embrace of multilateralism, internationalisation and global friendships, rooted in their rich, diverse and agile cultures; both thrive on connectivity in trade, innovation and tourism.
Hong Kong must improve its knowledge, understanding, language proficiency and engagement with this core pillar of Asia’s future. Indeed, there are four areas where action is needed.
First, Hong Kong, as a global financial centre and China’s most international city, should leverage its financial and legal institutions to advance Indonesia’s public and developmental interests. We can continue to be an international finance centre for Asia in the 21st century provided we cater to the needs of both China and the Asean economies, including Indonesia.
A few immediate steps include scaling up the outreach of our sukuk programme (for the sharia-compliant bond-like instrument) to cultivate a larger financial workforce sensitive to Islamic cultural traditions and needs, and offering a gateway into China for high-net-worth individuals and family offices from Indonesia.
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