Indonesia pushes for deeper ASEAN economic integration

  • Published on 27/10/2025 GMT+7

  • Reading time 3 minutes

  • Author: Renold Rinaldi

  • Editor: Imanuddin Razak

Indonesia calls on ASEAN member states to deepen regional economic integration through inclusive, digital, and sustainable trade during the 47th ASEAN Summit, emphasizing unity as the foundation for growth amid shifting global dynamics.

Indonesian Trade Minister Budi Santoso said ASEAN’s centrality and solidarity remain crucial in navigating the increasingly complex geopolitical and economic landscape.

“ASEAN’s unity and centrality can serve as a foundation to face geopolitical and protectionist challenges. It means ASEAN must be able to maintain stability while becoming an engine of economic growth for the region,” he said in a statement on Monday, October 27, 2025.

Budi underscored that ASEAN countries must not only strengthen intra-regional trade and investment but also ensure that the benefits of economic integration are felt broadly including by micro, small, and medium enterprises (MSMEs).

The Indonesian government reaffirmed its commitment to advancing regional economic integration through inclusive and forward-looking trade practices. “One of Indonesia’s tangible contributions is its leadership in facilitating the upgrade of the ASEAN Trade in Goods Agreement (ATIGA),” Budi added.

The 47th ASEAN Summit, hosted by Malaysia, is focused on strengthening regional resilience through enhanced economic cooperation, clean energy transition, and digital transformation with Indonesia positioning itself as a driving force behind a more integrated and inclusive ASEAN economy.

ATIGA Upgrade

At the Kuala Lumpur summit, ASEAN leaders officially signed the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA) Upgrade, a milestone expected to modernize the region’s trade framework.

The upgraded deal introduces several new provisions, including commitments to promote green trade, enhance the participation of MSMEs, improve supply chain connectivity, and strengthen alternative dispute resolution mechanisms among ASEAN member states.

“This agreement reflects ASEAN’s confidence to stay relevant and move forward amid global economic shifts,” Budi said.

Meanwhile, Director General for International Trade Negotiations at the Indonesian Ministry of Trade, Djatmiko Bris Witjaksono, noted that throughout the negotiation process, Indonesia worked to ensure its national interests were safeguarded particularly regarding key commodities.

“Indonesia has managed to maintain special protocols for rice and sugar, which are vital to ensuring price stability and supply security for both national and regional markets,” Djatmiko said.

The special protocols allow importing countries to take protective measures if surges in rice or sugar imports threaten or cause serious harm to domestic producers. Under these provisions, countries may temporarily suspend tariff preferences in line with World Trade Organization (WTO) rules, provided they notify and consult with the ASEAN Free Trade Area (AFTA) Council.

“These mechanisms are designed not as barriers, but as safeguards to maintain regional food security while supporting fair and sustainable trade,” Djatmiko said.

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