The recent Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting, held in Lima, Peru, on November 15-16, 2024, marked the first engagement of President Prabowo Subianto with APEC leaders. The summit brought together 21 leaders representing member economies dedicated to promoting economic cooperation in the Asia-Pacific region.

This APEC Summit took place amid growing concerns about the forum's standing as the premier economic platform in the region. As APEC celebrates its 35th anniversary, the forum now faces a critical juncture, with numerous challenges threatening its significance and effectiveness in a rapidly evolving global landscape. Addressing these issues is essential for APEC to continue fulfilling its vision of fostering sustainable growth and prosperity in the region.

Founded on the principles of economic cooperation, APEC aims to promote free and open trade and investment in the Asia-Pacific, as outlined in the Bogor Goals of 1994. However, despite these initial goals, APEC has struggled to make substantial progress toward establishing a Free Trade Area of the Asia-Pacific (FTAAP) since the 1990s.

This stagnation arises from differing perspectives among APEC economies regarding the purpose of FTAAP. Some view it as the ultimate goal of creating a comprehensive free trade agreement across the region, while others see it as a process for exchanging views on trade-related issues. APEC’s consensus-based approach has hindered meaningful discussions and advancements on the FTAAP.

Additionally, the rise of various regional trade agreements -- such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the US initiative on the Indo-Pacific Economic Framework (IPEF) -- has overshadowed APEC’s original aspirations.

Geopolitical issues have increasingly complicated the prospects for economic stability in the Asia-Pacific region. In recent years, with rising tensions -- exemplified by conflicts in Ukraine and the Middle East -- contributing to uncertainty and division, negatively affecting global and regional cooperation.

Furthermore, the climate crisis presents an urgent challenge, exacerbating food shortages and poverty worldwide. According to the "State of Food Security and Nutrition in the World" report published by five UN agencies in July 2024, progress toward eliminating hunger has stalled, with nearly one in eleven people globally facing hunger in 2023. The report identifies conflict, climate change, and economic downturns as the three major drivers of this crisis. These interconnected issues pose significant challenges to sustainable economic growth in the Asia-Pacific.

At the APEC Summit, President Prabowo Subianto addressed these pressing issues, emphasizing that peace and security are driven by economic activity. He highlighted the importance of collaboration, engagement, and negotiation among member economies while sharing Indonesia’s vision of achieving self-sufficiency in food and green energy and addressing poverty and malnutrition among children in Indonesia.

As the host of APEC 2024, Peru has made significant efforts to ensure that the summit effectively addresses global challenges. The summit concluded with the adoption of the “Machu Picchu Declaration,” reaffirming the leaders' commitment to an open, dynamic, resilient, and peaceful Asia-Pacific community. This declaration highlights APEC's accomplishments in 2024 across key sectors, including digital transformation, women’s empowerment, food security, and energy transitions.

Significant deliverables from this year's APEC Summit include focused efforts to increase the forum's relevance by tackling urgent global issues. To advance FTAAP discussions, APEC adopted a “new look” at the FTAAP agenda, reflecting the evolving landscape of international trade. In response to food security and hunger issues, APEC members adopted the “Principles for Preventing and Reducing Food Loss and Waste.” Additionally, to support the clean energy transition, APEC endorsed the “Policy Guidance on Clean and Low-Carbon Hydrogen.” These efforts underscore APEC's commitment to addressing critical challenges and securing sustainable growth for the region.

Building on these achievements and to further enhance APEC's relevance, Indonesia can maximize its role by concentrating on key strategic areas. First, as a bridge-builder among member economies, Indonesia can foster dialogue and collaboration by advocating for investment, capacity building, and technology transfer -- essential for a successful clean energy transition and strengthening food security.

Second, Indonesia should align its economic priorities with the APEC agenda by, among others, advocating for the inclusion of electric vehicle (EV) batteries in the APEC Reference List of Environmental Goods. This inclusion could advance EV battery development in Indonesia by fostering collaboration on clean technology initiatives.

Finally, Indonesia can maximize APEC's capacity-building funding, approximately US$ 40 million annually, to support key programs like food security, energy transition, human resource development, digital innovation, and poverty alleviation. By involving universities, research institutions, and think tanks in the funding application process, Indonesia can ensure diverse input and benefits from these initiatives.

By focusing on these areas, Indonesia has the opportunity to advance its priorities while making significant contributions to APEC's collective efforts. Through collaboration and innovative approaches, APEC can sustain its essential role in fostering sustainable growth and prosperity in the Asia-Pacific region.

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Febby Andryananto is a diplomat at the Ministry of Foreign Affairs of Indonesia. 
The views expressed in this article are those of the author.