Indonesia’s ex-president Yudhoyono urges Asean to beef up investment game amid global shifts
He says the regional bloc should maintain a balanced relationship between China and the West
[JAKARTA] South-east Asia must step up its efforts to attract long-term investment by enhancing trust, improving human capital and building a more compelling regional narrative, Indonesia’s former president Susilo Bambang Yudhoyono said, warning that rising geopolitical tensions and economic realignments are reshaping the global investment landscape.
Speaking at the Asia Economic Summit in Jakarta on Thursday (Jun 26), he said the region faces both opportunities and risks as industries increasingly shift out of China in response to global trade tensions, particularly between the US and China.
The 75-year-old served as Indonesia’s sixth president from 2004 to 2014.
“As some industries begin to relocate from China, South-east Asia has a real chance to position itself, not just as a destination for low-cost labour, but as a strategic hub for innovation, logistics and regional integration,” he said.
However, he cautioned that seizing this moment would require agility and diplomatic balance.
“As we see China as an important source of technological capital, we also see the US and the West as indispensable sources of financial capital, therefore we need to maintain relationships with both with respect, mutual trust and mutual benefit.”
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He said that to remain competitive, South-east Asia needs to expand its fiscal space, improve financial intermediation (particularly for small and medium-sized enterprises), and invest heavily in education and skills training to prepare workers for an increasingly automated, artificial intelligence-driven future.
His remarks come at a time when several South-east Asian economies have been hit by elevated tariffs under US President Donald Trump’s administration.
In response, some have entered negotiations with Washington in hopes of easing trade pressures and preserving their export competitiveness.
Amid mounting global volatility, from the wars in Ukraine and Gaza to intensifying strategic rivalries between major powers such as US, China and Russia, Yudhoyono urged South-east Asian nations to project a united and dependable front to international investors.
“Investors want to know that our rules are stable, our systems are fair, and our societies are resilient,” he said. “Trust between governments, with the private sector, and with citizens, is fundamental in attracting long-term capital.”
He also urged South-east Asian nations to tell a more unified and compelling story on the global stage.
“The world often views South-east Asia through a fragmented lens. We must shift that perception. Diplomacy and storytelling are strategic capital,” he said.
Held at The St Regis Jakarta, the Asia Economic Summit was organised by Tech in Asia and The Business Times.
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