MASTER PLAN ON ASEAN CONNECTIVITY 2025 AND REGIONAL INTEGRATION

Group 3 on Inter Regional and Intra Regional Cooperation:- Andri Djufri Said- Fahmi Jamaludin- Raden Sigit Witjaksono- Rukmini Tri Setiati- Teguh Wiweko

CREATIVE FRIDAY

Meeting with DR. Lim Chze Cheen, Director of ASEAN Connectivity in the ASEAN

Secretariat.

ASEAN Secretariat, 26 August 2016

BACKGROUND

Master Plan on ASEAN Connectivity 2025 (MPAC 2025) will adopt at in the ASEAN Summit in September 2016 in Vientiane, Lao PDR. MPAC 2025 will provide supports in achieving an integrated ASEAN Community, as well as narrowing the development gap

MPAC 2025 is a continuation of MPAC 2015. MPAC 2025 will continue to emphasise on three dimensions of connectivity;

(a) physical connectivity (infrastructure e.g., transport, ICT, and energy), (b) institutional connectivity (e.g., trade, investment, and services liberalisation), and (c) people-to-people connectivity (e.g., education, culture, and tourism). As an

integral part of ASEAN Community Vision 2025,  Until March 2016, of the total 125 initiatives/measures in the old MPAC 2015, only 38

initiatives/measures have been completed with completion rate 30.4%. 43 unimplemented measures will be incorporated in the MPAC 2025.

CHALLENGES

1. Funding. 2. Feasibility of the proposed

projects. 3. Coordination.

In national level of each ASEAN member states, the coordinating body could also vary in each country.

4. Communication.

MPAC 2025

MPAC 2025 will consist of 5 strategic areas; sustainable infrastructure (3 initiatives), digital innovation (4 initiatives), seamless logistics (2 initiatives), regulatory excellence (2 initiatives) and people mobility (3 initiative).

The process of determining 5 strategic areas had been designed to push for the involvement of all ASEAN sectoral bodies, national coordinators, and other stakeholders through some consultations.

The consultation also covered dialogue partners and other potential donors so that they are familiar with the MPAC 2025 since its early stages.

The 5 strategic areas are expected to be feasibly be materialized into concrete projects. To address the coordination challenge, ASEAN has clearly determined which ASEAN sectoral

body that will supervise each strategic area and its initiatives. At national levels, ASEAN member states must immediately appoint a national coordinator. For

Indonesia, the previous national coordinator for connectivity was BAPPENAS. Up to now, there is no national coordinator appointed yet, although BAPPENAS will be likely appointed again as national coordinator.

SUB REGIONAL COOPERATION

BIMP-EAGA, IMT-GT, Greater Mekong Subregion.

These mechanisms could become catalyst for ASEAN integration and be complimentary to the MPAC 2025.

Main Problem : The involvement of central governments is quite limited in many sub-regional projects; and the focus of sub-regional cooperation lies in the provincial/local governments.

ASEAN AND STRATEGIC PARTNER

China China has put forward the idea of “Belt and Road (Belt Road Initiative),

previously One Belt One Road, Initiative” and “Maritime Silk Road” to create a bigger connectivity in the region.

There has been no clear proposal and explanation on the details of their initiatives.

ASEAN is focusing on creating its own connectivity, while is in “wait and see” mode to the initiatives from China.

 ASEAN is open to engage with dialogue partner and play its role to be more active to bring them in, such as with China. But, dialogue partners also have many condition to be considered. New MPAC actually is more practical and is not limited to the infrastructure development only.

RECOMMENDATION

Time for ASEAN to decided certain AMS to lead based on their experiences and strength and establishment of specific body to lead and coordinate in the implementation of the initiative.

Indonesia could find an innovative arrangement and play its role on establishing new body to implement the initiative.

In conclusion, there is optimism that MPAC 2025 could be more a “success" compared to MPAC 2015, and it will pave a better way for creating an integrated ASEAN. For Indonesia, the first task to do is to appoint a national coordinator and subsequently to appoint focal points to each strategic area and its initiatives/measures.