Vice Minister for Foreign Affairs, Pahala Nugraha Mansury, delivers remarks at the opening of the SSTC Thematic Session at the High-Level Forum on Multi-Stakeholder Partnerships (HLF MSP) 2024 in Nusa Dua, Bali, on Tuesday (3 September 2024). The discussion focused on the theme "Redoubling Business Actors' Participation in the Global Supply Chain." Media Center IAF II-HLF MSP/Nyoman Hendra Wibowo/YU

Badung, 3 September 2024 – Indonesia's Vice Minister for Foreign Affairs, Pahala Nugraha Mansury, called on business actors to play a more active role in unlocking the economic potential of developing countries in the Global South while promoting a more integrated and resilient global economy.

He emphasized that developing countries should not only act as producers and exporters of raw materials but also become critical players in the global supply chain.

"Developing countries must advance up the global value chain. To reach this full potential, better economic integration and broader market access are required," Pahala explained during the thematic parallel session "Redoubling Business Actors' Participation in the Global Supply Chain" at the High-Level Forum on Multi-Stakeholder Partnerships (HLF MSP) 2024 on Tuesday (3 September 2024).

Pahala also highlighted five key areas that can enhance the participation of the business sector in developing countries. First, economic integration and market access, which aims to ensure a more resilient supply chain and facilitate the sharing of expertise and trade and investment opportunities among developing countries.

SSTC Thematic Session at the High-Level Forum on Multi-Stakeholder Partnerships (HLF MSP) 2024 in Nusa Dua, Bali, Tuesday (3/9/2024). The discussion focused on the theme "Redoubling Business Actors' Participation in the Global Supply Chain." Media Center IAF II-HLF MSP/Nyoman Hendra Wibowo/YU

Second, cross-sector collaboration between the private sector, government, international financial institutions, and philanthropy to boost the developing countries’ role in the global economy. Third, access to technology and knowledge, which focuses on expanding access to technology and promoting knowledge exchange.

Fourth, addressing financing gaps through the adoption of innovative financing schemes. Fifth, promoting trade portfolio diversification to reduce dependence on certain commodities.

"By focusing on these five areas, we can enhance the role of developing countries in the global supply chain, reduce economic fragmentation, and achieve a more sustainable development," Pahala added.

Meanwhile, the Indonesian Chamber of Commerce Chairman, Arsjad Rasjid, underscored the importance of diversifying Indonesia's trade portfolio. According to Arsjad, Indonesia must increase private sector involvement, understand its competitive advantages, and identify weaknesses in specific commodities and markets that align with future trends.

"Indonesia needs to view the MSME industry with a broader perspective and learn from other developing countries where MSMEs are more effective in contributing to the global value chain," said Arsjad.

Arsjad also underlined the importance of overcoming tariff and non-tariff barriers and pursuing new trade agreements with non-traditional markets. "This is not just an economic issue, but also about enhancing the understanding and coordination among stakeholders," he explained.

The discussion also featured panelists such as Rwanda's Minister of Trade and Industry Prudence Sebahizi, Chief Advisor at the Economic Institute of ASEAN and East Asia (ERIA) Li Yan Ing, and Deputy Director of the Global Alliance for Trade Facilitation Jose Raul Perales. They emphasized the need for closer cooperation among developing countries to strengthen their position in the global supply chain and achieve inclusive growth. (Bappenas/TR/Elvira Inda Sari/FI/SC).

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