1. The First Meeting f the ASEAN Economic Ministers on industry was held in Denpasar, Bali, Indonesia, on 29 – 30 September 1980 and was officially opened by H.E. Adam Malik, Vice president of the Republic of Indonesia.
  2. The Meeting was attended by H.E. A.R. Soehoed, Minister of Industry of Indonesia; H.E. Datuk Leo Moggie, Minister of Energy, Telecommunications and Posts of Malaysia; H.E. Roberto V. Ongpin, Minister of Industry of the Philippines; H.E. Goh Chok Tong, Minister of Trade and Industry of Singapore; H.E. Maj. Gen. Chatichai Choonhavan, Minister of industry of Thailand and their respective delegations.
  3. H.E. Narciso G. Reyes, ASEAN Secretary- General attended the Meeting.
  4. H.E. A.R. Soehoed, Minister of industry of Indonesia was unanimously elected as Chairman.
  5. The Meeting agreed on the following recommendations of COIME for AEM confirmation:

    a) The General Guidelines on ASEAN Industrial Complementation (AIC) which would cover products currently manufactured in ASEAN as well as products not yet manufactured in ASEAN for inclusion into the Basic Agreement of ASEAN Industrial Complementation (AIC);

    b) The allocation of the following existing products as the first package for automotive complementation:

    Indonesia : – Diesel engines (80 – 135 HP)

    Malaysia : – Spokes, nipples, drive chains for motorcycles and timing chains for motor vehicles.

    Philippines : – Ford body panels for passenger cars

    Singapore : – Universal joints.

    Thailand : – Body panels for motor vehicles of one ton and above;

    together with the existing products to be selected and agreed upon from the indicative offer-list of components as revised by COIME in order to arrive at a more practical, realistic and balanced complementation of the first package.

    c) The allocation by AEM to the ASEAN member countries of products not yet manufactured in ASEAN as a second package for automotive complementation.

    d) Following new procedures for financing AIPs:

    i) The host country/project company selected an independent consultant of world recognized competence in the particular field involved to conduct the feasibility study of the projects;

    ii) On completion of the feasibility study, the project company selects an independent consultant to prepare the tender documents; and

    iii) The project company bids out the tenders for the project, including financing, on an internationally competitive basis.

    e) The new alternative procedures to undertake ASEAN Industrial Projects (AlPs).

  6. The Meeting exchanged views on long-term and short-term policy and strategy for industrial cooperation ancl agreed on the following:

    a) There is a need for a regular exchange of information among the member countries on their respective long-term.industrial plans and programmes, with the view to seeking better cooperation in the economic field. With regard to the mechanism to implement this proposl, the Meeting agreed to recommend to the AEM that meetings of Boards of investment representatives of the member countries be convened on a regular basis as a vehicle for this exchange. The reports of these meetings of board be sub mitted to COIME wh. in turn will transmit the same to the ASEAN Economic Ministers on Industry.

    b) Industrial cooperation should be focussed on areas where national interests are convergent, particularly in basic and upstream industries;

    c) The participation of all five ASEAN countries in future ASEAN Industrial Project (AlPs) would no longer be required. However, non-participating countries should be consulted to ensure that their respective national interests are not adversely affected with the decision to proceed with an ASEAN project;

    d) The private sector should be encouraged to participate actively towards greater intra-ASEAN investments. The projects undertaken by the private sector, decisions involving financing and location should be left to their own discretion. In this regard, the Meeting agreed on the need to facilitate the formulation of guidelines of ASEAN joint Venture Projects as proposed by the ASEAN-CCI as well as the need to intensify dialogues between ASEAN governments and private sectors. The Meeting further supported the proposal that a list of new products which are not yet manufactured in ASEAN countries should be formulated. These product shall be eligible for special tariff preferences vithin the PTA scheme to encourage private sector investments in these areas;

  7. The Meeting supported the concept of the ASEAN joint Venture Projects as proposed by the ASEAN-CCI, the terms of reference of which will be discussed at the Meeting of the Boards of investments to be convened in the Phillppines as soon as possible.
  8. The Meeting was conducted in the traditional spirit of ASEAN solidarity and cordiality.