JAKARTA: Indonesia, being the biggest Asean member, needs to play an active leadership role to restore dynamism to the region.

That was Singapore Senior Minister Goh Chok Tong’s message to a gathering of top CEOs in Jakarta.


Speaking at the launch of the inaugural CEO Circle on Tuesday, Mr Goh also said Asean had to tap into China’s and India’s growth to prosper further.

Acknowledging that Asean had lost some of its shine since the 1997 financial crisis, a situation not helped by recent terror acts and natural disasters, Mr Goh said the region had however shown resilience and was back on the track of growth again.

India’s and China’s growth is playing a big role here. And Asean needs to tap into this for greater prosperity.

"China and India, not Asean, are now dominating the radar screen of international investors. They are the flying steeds of Asia. How should Asean respond? I believe Asean should respond in three ways. First, by hitching ourselves to the two flying steeds. Second, by constructing a chariot to do so. Third, by pressing on with reforms at the national level to produce strong riders," SM Goh said.

He added that one way Asean could work together as an economic community was to press ahead with free trade agreements with important trading partners, especially in light of recent news that India and China may soon start FTA negotiations with each other.

"Once China and India sign an FTA, they may need Asean less. Asean must therefore work hard to ensure that FTAs with China and India are completed and fully implemented by 2010 and 2011 respectively," Mr Goh said.

But the Singapore Senior Minister added that regional prosperity was only possible when driven by national growth.

Turning to Indonesia, he said it had been beset with internal problems but now, with more economic and political stability, it could play a leadership role to bring dynamism to the region.

Indonesian Vice President Yusuf Khalla also delivered a speech at the forum, and a lively question-and-answer session followed.

CEOs threw a variety of questions - from the role of Temasek, the integration of Asean to the perennial issue of endemic corruption in Indonesia.

"What do you advise on how corruption can be stamped out in Indonesia?" asked one of the CEOs.

"I’m a friend of Indonesia and I want to remain a friend of Indonesia. So, I won’t comment on Indonesia."

The Senior Minister then went on to explain how Singapore handled the corruption issue.

On the ongoing issue of an extradition treaty between Singapore and Indonesia, Mr Goh said it was a complicated issue and though it would be concluded, it would not solve Indonesia’s corruption problems.

Mr Goh will meet other top-level Indonesian leaders on Wednesday before returning to Singapore.

It’s Mr Goh’s first official visit to Indonesia since he stepped down as Singapore Prime Minister last year.