PAPERS INTERNASIONAL LAW

ROLE OF INDONESIA ON THE DEVELOPMENT OF ASEAN ECONOMIC

COMMUNITY

ARRANGEND BY :
BUANA SHYNTIA RANI
(151010165)
LECTURE :
RONI SAHINDRA SH,MH.

UNIVERSITY ISLAMIC RIAU

CONTENTS
FOREWORD
CHAPTER I : PRELIMINARY
1.1 Background
1.2 Formulation Of The Problem
1.3 Purpose Of The Problem
1.11Aware Of Understanding Internasional Economi
1.12 Aware Of ASEAN Economic Community
1.13 Knowing About The Role Of Indonesia Develpments ASEAN Economi
Community
1.14 Aware Of Indonesia On Economic Strategy ASEAN
1.15 Aware Of ASEAN Economic Community Any Effect On Indonesias
Economi
CHAPTER II : DISCUSSION
2.1 Understansing Intenasional Economi
2.21 Indonesia's role in international economic cooperation
2.22 Indonesia Role In Economic Cooperation Between The State And Impact
2.2 ASEAN Economic Community Defenition
2.3 Role Of Indonesia On The Development Of ASEAN Economi Community
2.4 Strategy Role In Economic Development In Indonesia ASEAN
2.5 ASEAN Economic Community Any Effect On Indonesias Economi
CHAPTER III : COVER
3.1 Conclusion
3.2 Criticism And Suggestion
BIBLIOGRHAPY

FOREWORD
All praise and gratitude to Allah SWT that is where the grace and gift paper this simple
finish entitled "The Role of Indonesia Against Development of Asean Economic Community"

and this paper to explain or clarify the roles, impact, and Indonesian strategy in the face of the
Asean Economic Community which has become a major issue in the discussion of this paper.
This paper was made for the deepening of the MEA indispensable in the development of
economic and political as well as a reference of the problems occurred and the authors also
realized that in writing this paper is still much less and the authors also noticed that as I still have
much to learn in using a foreign language as well as procedures. therefore the authors apologize
when the writing is still wrong and inaccurate because that has a just God and a shortage of a
human. the authors hope this paper useful and helpful for readers and readers can add insight. for
the attention of the reader writer thank you.

Pekanbaru,09 November 2016

Composer

CHAPTER I
PRELIMINARY
1.1 Background

ASEAN Economic Community (AEC) in 2015 (English: the ASEAN Economic

Community (AEC)) is an ASEAN economic integration in the face of free trade between
countries of ASEAN countries. All ASEAN countries have agreed this agreement. MEA is
designed to realize the ASEAN Insight 2020.
Or the AEC is the result of an agreement between the heads of ASEAN countries to
establish a single market in the ASEAN economic region that ASEAN countries were able to
compete against other countries such as China or any other country in terms of trade. Beginning
of the MEA begins at the summit held in Kuala Lumpur on 1997 where ASEAN leaders decided
to make changes to ASEAN into a region prosperous, stable and very competitive in the
economic development of justice and can reduce inequality and poverty, socio-economic
(ASEAN Vision 2020).
Purpose of establishing the ASEAN Economic Community it self is to facilitate trade in
goods and services across Southeast Asia, giving rise to intense competition between countries.
For that investigate and find out the factors that are affected by the ASEAN Economic
Community by the government is very important to prepare the public face of economic policy
with the Asean single market.
With the holding of the economic society asean, it is expected that countries that joined
the union or treaty organization asean can set their own economic communities and facilitate
pathways trade without getting special tax for twice and goods - goods that are traded buffer
competes closely in other countries, then from the role of Indonesia is very used in the Asean
economic community. and is expected to change pekekonomian society, especially in the
economic sector, industry, and politics.
1.2 Formulation Of The Problem
As for the problem - a problem that would be made or discussed is the understanding of
international economics, know the community economi asean, the role of Indonesia in the
development of economic society asean, the strategy of Indonesia in the economy asean and the
effects of the economic community asean. From the above discussion has been discussed broadly
about public understanding economi asean. In this paper, the authors formulate the problem as
follows:
1. Aware of Understanding Internasional Economi?
2. Aware of ASEAN Economi Community?
3. Knowing about the Role Of Indonesia Developments ASEAN Economi Community?

4. Aware Of Indonesia On Economi Strategi ASEAN?

5. Aware Of ASEAN Economic Community Any Effect On Indonesias Economi?
1.3 Purpose Of The Problem
In the formulation of the above problems have been outlined what became the main
problem, the purpose of this paper is to explain the opportunities, challenges, and risks faced by
Indonesia in facing the ASEAN Economic Community that the community is able to face the
global market competition. The purpose of this paper is to know clearly about :
1.
2.
3.
4.
5.
6.
7.

Understanding Internasional Economi

Role of Indonesia On The Internasional Economi
ASEAN Economic Community Definition
Role of Indonesia On The Development OF ASEAN Economi Community
Strategy Role In Economic Development In Indonesia Economi Community
ASEAN Economic Community Any Effect On Indonesias
Indonesia Role In Economic Cooperation Between The State and Impact

CHAPTER II
DISCUSSION
2.1 Understanding Internasonal Economi
International economics is economics that discuss the impact of interdependence between
the countries in the world, both in terms of international trade and international credit markets.
US energy sources, for example, relies heavily on foreign manufacturers, while Japan imports
almost half of the food consumed by its inhabitants. By contrast, developing countries are very

membutukan technology developed and produced by the industrialized countries. In the long
term, international trade patterns are determined by the principles of comparative advantage.
a. The influence of international trade
The influence of international trade tasted on prices, national income, and the level of
employment in the countries involved in the international trade. Exports will increase public
demand, which is the amount of goods and services that people want in the country. By contrast,
imports will reduce the public demand in the country. Public demand will affect employment and
national income, and among others will depend on the magnitude of net exports, which is the
difference between exports and imports. When the positive net exports, meaning that exports
greater than imports, employment and national income tends to rise. The amount of net exports is
largely determined by the exchange value of the currency of the country concerned. For example,
the value of the rupiah fell against the US currency, the price of exports from Indonesia will be
relatively cheaper in the US, so exports will tend to increase. In contrast, the price of US goods
become relatively expensive so imports will likely fall. Thus, the decline in value of its own
currency exchange rate will tend to increase net exports, and vice versa. Thus, activities as well
as international events will affect the domestic economy, through the influence of currency
exchange rates on the import, export, and finally the public demand.
International trade also works for defense and security. For example, a non-nuclear
country wants to develop nuclear weapons. This state can be suppressed by economic sanctions.
This means that other countries are not allowed to establish trade relations with that country.
Typically such efforts must be authorized by the United Nations. This is done in order to create
security in the world. International trade is also associated with the defense of a country. Each
country would need a weapon to defend its territory. In fact, not all countries are able to produce
weapons. It is necessary to import weapons.
To prevent the trafficking of dangerous goods, required international cooperation. The
dangerous goods eg illicit weapons, drug-Obata nterlarang, endangered animals, animals that
carry infectious diseases, etc. For the sake of this government that all countries have customs.
This institution established by the government of a country to inspect the goods and luggage
when entering a country. This examination is needed to see whether the taxes were paid.
Inspection and also to check whether the goods are contraband or prohibited items or not. The

means used in the examination, among others by viewing the document items, use a detector of
dangerous goods, or using dogs.
b. The influence of the international credit market
This influence is felt in the domestic economy. Banks and large corporations and
individuals can lend money in the country and abroad, whichever is more favorable. This
advantage depends on the high interest rates offered by each country. When the higher US
interest rates, for example, then the funds will flow a lot to the US, and vice versa. However, the
flow of funds into the US will result into increased credit supply, and this will lower the interest
rate back there. And so on so accomplished suau interest rates to maintain the balance.
c. Sources of International Economic Law
Basically formal sources of international law as found in Article 38 paragraph 1 of the
Statute of the International Court of Justice is also a source of international economic law.
According to the article, the sources in question are:
1. International Agreement
2. The international Habits
3. The principles of the common law
4. Decisions of judges and the teachings of prominent legal experts in various
Countries.
d. The problems in the international economy successor agreement
The difficulty of coordination between a successor agreement to the agreement with the
other successor agreement
The differences in interpretation, especially be true when there is a dispute between the
parties to the agreement
The entry of an international economic treaties into national law, in practice there is no
uniformity. There are two kinds of international economic agreements, among others:
I.

Bilateral successor agreement, The successor agreement Friendship, Commerce,

Navigation (FCN - Friendship, Commerce and Navigation),This bilateral agreement
thrives in pertengan century in Europe. Generally, these agreements contain provisions as
follows:

II.

The right to do business and to reside in another country;

The protection of the individual and his company;

Bilateral Investment Treaty (BIT - Bilateral Investment Treaty)

Rights and special treatment for the individual and his company with regard to: the practice

of professions, ownership of property or assets, patents, tax reduction of income and capital,
competition from state-owned enterprises, expropriation or nationalization of, access to the
courts.

Trade (taxes and quantitative barriers);

Shipping;

Submission of disputes under the agreement to the International Court of Justice But after
World War II, FCN treaty likely to shift to the establishment of companies abroad and advance
the rights of private investment. This is for two reasons: first, as a direct result and the growing
role of foreign investment after World War II, and secondly, because of the birth of the GATT
trade regulatory frameworks.
With growing investor from the US after World War II, the state government has
organized
a program to make bilateral agreements on friendship, commerce and navigation and other
commercial matters. But this effort then shrinking as developing countries generally skeptical
and reluctant to give guarantees of protection as in the agreement.
According Salacuse, because European countries are more successful preformance
anagreement are: first, the European countries are not too demanding in pengaturaan-setting and
requirements BIT and secondly, the relations of the countries of Europe with its former colony
became one of the drivers for these countries to enter into agreements with its former ruler
investment colony.
BIT reason be a popular choice:
The existence of a strong impetus from the citizens of certain countries to hold direct
investments in other countries. With this arises a need to create a stable international legal
framework to promote and protect the capital planters International law is considered to give a
little legal protection to foreign investors and does not have a binding mechanism to resolve
investment disputes.

In general, the basic rules of the BIT as follows:

Fair and Equitable Treatment; do not treat discriminatory and provide protection and

legal security as required by international law National Treatment; the host country should be
treated equally to the investment of its trading partners as well as the investments made by
nationals and companies Most-Favoured-Nation Treatment; contains general rules MFN basis, ie
the same treatment as they apply to the treatment of third country The combination of National
Treatment and Most-Favoured-Nation Treatment.
III.

Regional Economic Agreements

Nowadays more and more countries entered into an agreement to establish a regional

organization such as free trade areas or common markets. The legal basis for the establishment of
regional economic organizations there are for instance in Article XXIV of GATT.
2.21 Indonesia's Role In International Economic Cooperation
In accordance with the foreign policy of our country, that is, free and active then
Indonesia will always strive to actively participate in a variety of economic cooperation between
countries, both at the bilateral, regional, and international levels. Indonesia's participation in
various economic cooperation between countries aimed at improving the welfare and prosperity
of the nation of Indonesia.
There are three Indonesian role in the economic cooperation between countries is as
follows :
1. Indonesia as the Pioneer and Founder of the Organisation for Economic
Cooperation Friendlies.
Here is an example of the role of Indonesia as a pioneer and founder organization of
economic cooperation between countries.
a. Indonesia and Malaysia, the Philippines, Singapore and Thailand on August 8, 1967
signed the Bangkok Declaration to establish the ASEAN.
b. Indonesia and Malaysia, Brunei, Singapore, Thailand, and the Philippines on January
28, 1992 signed the Singapore Declaration as a milestone in the establishment of a free
trade area in South East Asia which was shortened AFTA.

c. Indonesia together with the United States, Australia, Japan, Malaysia, New Zealand,
Brunei, Singapore, Thailand, the Philippines, South Korea, and Canada, participate and
initiate the formation of APEC in 1993.
d. Indonesia also initiated bilateral trade ties with several countries, such as Japan, China,
Russia and Canada.
2. Indonesia as Active Members Organisation for Economic Cooperation Friendlies
Aside from being a pioneer, Indonesia as well as an active member in the organization of
economic cooperation between countries, as an active member of APEC, OPEC, and AFTA.
Here are the activities carried out Indonesia as an active member in the organization of economic
cooperation between countries.
a. Actively attended every meeting of the APEC conference, OPEC, and AFTA.
b. Engaging minister or minister-level officials in various conferences economic cooperation,
both regional and international levels
c. Held a ministerial meeting in the field of economy and trade appears logical.
3. Indonesia as a culprit in the Intergovernmental Economic Cooperation
Indonesia as actors in the economic cooperation between countries can be evidenced by
their import-export activities undertaken by Indonesia.
Here is an example of Indonesian exports to various countries:
a. textile products to the United States
b. liquefied natural gas to Japan
c. garments to countries of Singapore and South Korea
d. and marine fishery products to European countries
Meanwhile, Indonesian imports which are:
a. electronics from Japan
b. cattle from Australia State
c. cars and motorcycles from Japan, the United States and European countries
d. bras from Vietnam and Thailand
2.22 ASEAN Economic Community Any Effect On Indonesias Economi

Basically all forms of economic cooperation aimed at achieving the common welfare of
its members. Therefore, the world is facing the market, free, every organization has to prepare
for the regional and global economic changes that took place very quickly. Not a new thing when
it was thought that soon the Asia Pacific region and even regions of the world can not be
separated. Inevitably all countries should agree to an open economy, free trade and seeks to
encourage economic growth and a stable future, and improving welfare. Of the various economic
cooperation followed by Indonesia, there are positive and negative impacts.
The form of cooperation is :
1.
2.
3.
4.
5.
6.
7.

The development of the human resources and increased capacity

Recognition of professional qualifications related
Consultation closer to the financial and economic macro policy.
Have measures in trade finance.
Improving the infrastructure.
To develop the electronic transactions through e-ASEAN.
Unite all existing industries throughout the region in order to promote local

resources.
8. Enhancing the role of the private sector to build the AEC or the ASEAN
Economic
9. Community.
1. Positive Impact of Economic Cooperation:
a. Encourage the process of national development.
The development process requires the push factors, one of which is the capital.
Through economic cooperation, Indonesia can obtain a loan from friendly countries and
institutions the world economy. These types of loans are widely utilized was a soft loan.
These loans are low interest and long repayment period. This loan was used to build the
economic infrastructure such as roads, bridges, and power plants. Once built the
infrastructure, economic activity could increase. Thus, economic cooperation has
encouraged the development process in Indonesia.
b. Growing recognition of Indonesia in the arena of world relationships.
Indonesian nation to the principles of independent and active foreign. Through
economic cooperation, Indonesia can play an active role in the association world.
Indonesia can voice the interests of the national economy in various organizations and
international negotiations.

c. Gain from trade specialization.

The primary reason Indonesia conduct trade cooperation with other countries is
mempero, teleh profits and spesialisai. Although Indonesia can produce goods of the
same type, but there are times when Indonesia imported because it is cheaper. This also
applies vice versa, that is, when Indonesia is able to produce products at lower prices,
Indonesia can export to other countries.
d. Increased foreign exchange.
Economic cooperation, especially trade is a contributor to foreign exchange.
Foreign exchange earned from exports of oil and gas (oil and gas) and non-oil. Massive
foreign exchange reserves will strengthen the country's economy.
e. Widespread employment.
Economic cooperation has a positive impact on the expansion of employment. For
example, through direct investment (Foreign Direct Investment). Foreign companies set
up factories in Indonesia will use labor from Indonesia. Another example is the
establishment of export-based businesses, namely handicrafts, furniture, and gloves that
are labor intensive.
f. Obtain transfer of modern technology and technical assistant.
Indonesia conduct cooperation with developed countries for technical assistance
and companion. For example, the dam project, Indonesia requested assistance from the
Dutch engineering experts. This assistance is helpful to improve the quality building
techniques.
2. Negative Impact of Economic Cooperation
Not always the economic cooperation between countries that benefit member countries.
Interstate cooperation can also provide disadvantages for the countries involved. The negative
impact on the economic cooperation between countries as follows:
a. The free market that threatens the existence of domestic industr.
b. Potential economists are concentrated in developed countries that can lead to
developing economies be left behind.
c. The economy of a country becomes unstable due to the increasingly free flow of
private investment.

d. involvement. their foreign parties in economic policy in the country to reduce the
independence of a country.
e. The dependence of the domestic economy to aid or loans from abroad.
f. Absence of barriers in economic cooperation to encourage the influx of foreign culture
that does not comply with national identity.
2.2 ASEAN Economic Community Defenition
MEA is the abbreviation of the ASEAN Economic Community which has a pattern
integrate ASEAN ekonomu by forming a system of free trade or free trade between member
countries of ASEAN. The members of ASEAN, including Indonesia has concluded an agreement
of the ASEAN Economic Community. MEA is a term that is present in Indonesia but is basically
the same as the AEC AEC or the ASEAN ECONOMIC COMMUNITY.
Beginning of the MEA begins at the summit held in Kuala Lumpur on 1997 where
ASEAN leaders decided to make changes to ASEAN into a region prosperous, stable and very
competitive in the economic development of justice and can reduce inequality and poverty,
socio-economic (ASEAN Vision 2020).
then proceed to the summit of Bali that took place in October in 2003, the ASEAN
leaders mengaluarkan statement that the ASEAN Economic Community or AEC will be a goal of
the behavior of regional economic integration in 2020, ASEA SECURITY COMMUNITY and
several social communities Culture ASEAN are the two pillars which can not be separated from
the community ASEA. All parties are expected to work together in building a strong ASEAN
community in 2020.
In general, the AEC is defined as a society are mutually integrated with one another (ie
from country to country in linhgkup ASEAN) where free trade among the member countries of
ASEAN which has disepaki shared between leaders country- ASEAN countries to transform
ASEAN into a more stable, prosperous and competitive in economic development.
The importance of the ASEAN Economic Community
The importance of the ASEAN Economic Community is inseparable from the positive
impact and benefits of the implementation of regional free trade region of Southeast Asia

tersebut.Mungkin currently positive impact has not been so pronounced for MEA has just
occurred, namely in 2015, but the magnitude of expected benefits will be felt in subsequent
years, And below are some positive impact ata benefit from the AEC itself.
a. ASEAN Economic Community will encourage the flow of foreign investment into the
country that will create a multiplier effect in the various sectors, especially in the field of
economic development.
b. Market conditions that one (single market) makes the ease of formation of the joint
venture (cooperation) between firms ASEAN region so that access to production
materials more easily.
c. Southeast Asian market is a huge market potential as well as promising with an area of
about 4.5 million square kilometers and a total population of 600 million people.
d. MEA provides an opportunity for ASEAN member countries in terms of increasing the
speed of transfer of human resources and capital are two very important factors of
production.
e. Especially for the field of technology, the implementation of the ASEAN Economic
Community is creating a technology transfer from developed countries to developing
countries that exist in the region of Southeast Asia.
The main characteristics of MEA:
- A highly competitive economic region.
- Having a region of equitable economic development.
- The regions will be fully integrated in the global economy
- A single production base and market.
2.3 Role Of Indonesia On The Development Of ASEAN Economi Community
ASEAN (Association of Southeast Asian Nations), also known by the association of
Southeast Asian Nations (Perbara) is a regional cooperation organization that is engaged in the
field of economics and geo-politics among countries in Southeast Asia. The organization was
founded by "Bangkok Declaration" on 8 August 1967 in Bangkok. The founders of ASEAN are
Indonesia, Malaysia, the Philippines, Thailand, and Singapore. Some Indonesian role in the
economic development within the country of Indonesia alone asean :
1. Indonesian Government's Role In Preparing ASEAN Economic Community :
a. Sector Labor
b. Agriculture sector
c. Business or Sector Employers
d. Standardization of Labor Profersi

e. Currency
f. Role of Local Governments
g. Role of Local Government Act - Act SPK
2. Triple Helix Partnership Role in Preparing ASEAN Market
Triple Helix is the synergy and unification of the three circles are made up of academics,
business and government or employers. Triple Helix has three basic concepts are:
a. College / Lemba ga R & D has a role to produce technological innovations.
b. The third circle - academic, business, government - have the motivation to improve
power dynamics and economic sustainability.
c. Developing countries currently experiencing constraints to encourage each group of
academic, business, and government to take a more active role, such that all three
were able to expand the power potential of innovation themselves.
3. The influence of the ASEAN Economic Community (AEC) of the Indonesian Economic
Relations of the Neighboring Countries:
a. Indonesia-Singapore Economic Relations
Indonesia borders with other countries in the ASEAN region, namely Malaysia and
Singapore. With the ASEAN Economic Community (AEC) will be assured favorable for
Indonesia, as well as for Malaysia and Singapore. Singapore is the fourth leading financial center
in the world and a world city cosmopolitan plays an important role in trade and international
financial. The Port of Singapore is one of the world's five busiest ports. Diverse population that
has the amount of five million consisting of Chinese, Malay, Indian, a variety of Asian descent
and Caucasians. 42% of the population in Singapore are foreigners who work and study there.
Thus it would be very beneficial for Indonesia if good relations with Singapore in view of
the economic transactions will be easier with the ASEAN Economic Community and considering
Singapore is a country of consumers going forward and residents from various backgrounds and
different economic needs.
b. Indonesia Economic relations with Malaysia
As well as Indonesia and Singapore, the relationship between the two countries would
be beneficial for each. Each country will have a market in other countries with economic
transactions easier. Even within one occasion, Deputy Prime Minister of Malaysia Tun Sri

Muhyiddin Yassin conveyed President Joko Widodo and Malaysian Prime Minister Najib Tun
Razak has made a joint commitment to addressing labor related ASEAN Economic Community.
Malaysia considered still need workers from Indonesia.
The discussion which was built between the two heads of state will soon be
implemented in the near future. Malaysia, he said, has had one stop center to arrange a variety of
purposes. Given this one-stop center, Yassin sure bureaucracy for Indonesian workers (TKI) who
speculate in the neighbor country will be easier than in some time ago. Malaysia, he said, has
been in talks with the ministry that regulates labor in Indonesia.
4. The role of Indonesia in ASEAN
Here is an explanation of the role of Indonesia in ASEAN:
a) As one of the founding members of ASEAN
Indonesia is one of five founding ASEAN countries initiator. As already explained above
that the basis of the establishment of ASEAN is a declaration of Bangkok, where the declaration
was signed by the foreign ministers of the five ASEAN founding countries, ie:

Adam Malik of Indonesia

Narsisco Ramos of the Philippines
Tun Abdul Razak of Malaysia
Rajaratnam of Singapore
Thanat Koman from Thailand
While the content from the Bangkok Declaration is the basis of the establishment of

ASEAN are:
Accelerate economic growth, social progress and cultural development in the
regionPromote peace and regional stabilityImprove cooperation and help each other for common
interests in the economic, social, engineering, science, and administration Maintain close
cooperation in the middle - the middle of the regional and international organizations that exist
Enhance cooperation to improve education, training, and research in Southeast Asia Indonesia
has been regarded as the backbone of ASEAN by some countries that are outside ASEAN, of
which Indonesia has been able to create regional stability in Southeast Asia.
b) As One ASEAN Leaders

In this age of the New Order that during the leadership of President Suharto (2004),
Indonesia became the leader of ASEAN, where the style of leadership that Indonesia is able to
establish good cooperation relations with countries in Southeast Asia. In addition, Indonesia also
introduced the doctrine of national security at the meeting of the ASEAN ministerial meeting in
Singapore's 5th through the foreign minister Adam Malik. It is intended to reinforce the goals of
the ASEAN.
Indonesia has also presented a paper entitled reflection in order to invite the other
ASEAN members to evaluate previous economic agreement, where the agreement relating to the
program of sectoral cooperation in various fields. In addition, during his leadership, Indonesia
has successfully conducted a series of meetings such as:

Asean Ministerial Meeting (Asean Ministerial Meeting)

Asean Regional Forum (ASEAN Regional Forum)
Ministerial meeting area to discuss the prevention of various problems that occur,

and so forth.
c) To host ASEAN summit
Indonesia has gained the confidence to hold several times the Summit (Summit) ASEAN.
The ASEAN summit ever held in Indonesia include:

All first ASEAN Summit which was held on 23 to 24 February 1976 in Bali. In the
summit there was agreement on the establishment of the ASEAN Secretariat based in
Jakarta with the Secretary General (Secretary General) is the first by an Indonesian

named H.R. Dharsono.

9th ASEAN Summit which was held on 7 and 8 October 2003 in Bali. In the summit,
Indonesia proposed the establishment of the Asean Community (Asean Community)

which includes economic, social, cultural, and security.

18th ASEAN Summit which dilaksakan on 4 to 8 May 2011 in Jakarta.
19th ASEAN Summit which was held on 17 to 19 November 2011 in Bali. In the
conference obtained agreement on nuclear free region in Southeast Asia, known as the
Southeast Asia Nuclear Weapon Free Zone (SEANWFZ).

.
d) Ability to create peace in the region

Indonesia has helped keep the peace, especially in Southeast Asia, namely by helping to
resolve conflicts experienced by other ASEAN member countries. In 1987, Indonesia to mediate
the current conflict between Cambodia and Vietnam were finally in 1991 in the Paris conference,
the two countries agreed on a peace treaty.
2.4 Strategy Role In Economic Development In Indonesia ASEAN
Indonesia to mediate between the Moro National Front Liberation (MNFL) with the
government of the Philippines, which in the end both sides agreed to Southeast Asia Operative
Geopolitics And geoekonomi have strategic value, become the target of even conflicting interests
gatra big countries after World War II.
Against the backdrop of development of the situation in the region at the time, the stategatra Southeast Asia realize the need to establish a Cooperation Yang can be mutually Suspicious
relieve Simultaneously Building mutual Believe As well as encouraging development in the
Region, peace treaty were made at the meeting in Indonesia.
Meetings consultative been intensified between the Foreign Ministers of Indonesia,
Malaysia, Philippines, Singapore and Thailand to produce a draft Joint Declaration, which
among other things includes the awareness of the need to promote mutual understanding for
coexistence as well as fostering fruitful cooperation among countries which is already bound by
ties of history and culture. Furthermore, on August 8, 1967 in Bangkok, five Undersecretary of
State / Government of South East Asia is the Deputy Prime Minister and Minister of Foreign
Affairs of Malaysia and the Foreign Minister of Indonesia, the Philippines, Singapore and
Thailand signed the Bangkok Declaration. The declaration marks the establishment of a regional
organization called the Association of Southeast Asian Nations (ASEAN).
According to the original schedule, Indonesia will hold the chairmanship of ASEAN in
2013. However, because of the same year Indonesia will also become Chairman of APEC,
Indonesia proposed to ASEAN to advance the position of chairman of Indonesia from 2013 to
2011. The official announcement Indonesia as ASEAN chair in 2011, during the Closing
Ceremony of the 17th ASEAN Summit in Hanoi, Vietnam, on October 30, 2010. Indonesia
became chair of ASEAN in 2011, effective from 1 January 2011 to 31 December 2011. Indonesia
to ASEAN in 2011 is themed " ASEAN Community in a Global Community of Nations ". This
theme brings success in achieving the ASEAN Community by 2015. With the formation of the
ASEAN Community in 2015, the responsibility of ASEAN will be even greater. ASEAN is

required to strengthen their collective contribution in addressing the many issues and global
challenges.
The role of Indonesia in ASEAN is very strategic This role is not just about the position
of Indonesia who in 2011 became chairman of ASEAN. However, it also deals with how the
influence of Indonesia in the development and progress of the ASEAN countries. Two very
interesting field to be discussed are the economic and political fields. There are several issues
that are necessary to be a priority in Indonesia :
1. The first issue is the increase in Indonesia's active role as a mediator in
resolving conflicts in the region, which until now has not been resolved. The
issue of crimes against humanity in Myanmar Rohingya be one such
example.
2. The second issue is how to manage the role of ASEAN in the development of
multilateralism, especially about the idea of expansion of the East Asia
Summit (EAS).
3. The third issue is the improvement of the ASEAN Secretariat, both in terms
of management is necessary to distinguish between the role of administrative
functions such as in the European commissioner who has the authority to a
certain extent as the highest organ of ASEAN, and in terms of budget
increase.
The period of one year chairmanship that this brief should be used with the best to be the
first step for Indonesia's leadership in the long term to drive ASEAN to be more effective in
addressing various global challenges that await in the future.
2.5 ASEAN Economic Community Any Effect On Indonesias Economi
With the MEA is expected the Indonesian economy could be better. Marketing of goods
and services from Indonesia can expand its reach to other ASEAN countries. Exports and
imports can also be done with a cheaper cost. Labor from other countries in ASEAN can be free
to work in Indonesia. In contrast, Indonesian workers (TKI) also can be free to work in other
countries in ASEAN. Investors could widen its investment space with no limit of space among
ASEAN member countries.
Likewise, if we want to attract investment from the ASEAN capital holders. Can enhance
creativity for their employers more competitive, and improve skills, competence and
professionalism possessed. Behind the positive benefits of existing MEA artifacts there are also

negative points that could make foreign companies to be more dominating, more competition
may result in unemployment, and foreigners can easily exploit Indonesia.
The influence of asean economic community, there are positive impacts and negative
impacts :
A. POSITIVE IMPACT ASEAN Economic Community (AEC)
1. On the trade side
According to Santoso in 2008. For Indonesia alone, MEA will be a good opportunity for
trade barriers will tend to diminish even be non-existent. This will impact on increasing exports,
which in turn will increase the GDP of Indonesia.
2. On Side Investments
This condition can create a climate that supports entry of Foreign Direct Investment
(FDI), which can stimulate economic growth through technology development, job creation,
human resource development (human capital) and easier access to the world market.
3. On the side of Labor
There is a tremendous opportunity for job seekers because it can be a lot of jobs available
with the various needs of a diverse membership. In addition, access to go abroad in search of
jobs easier and even could be without any particular obstacles. MEA also be a good opportunity
for entrepreneurs to find the best workers in accordance with the desired criteria. Indonesian
workers can also work in ASEAN member countries freely and in accordance with the skills they
have.
B. NEGATIVE IMPACT ASEAN Economic Community (AEC)
1. On Side Competition
Competition will appear with the number of imported goods will flow in large quantities
to Indonesia, which will threaten the local industry in competing with foreign products of much
higher quality. This in turn will increase the trade deficit for the State Indonesia alone.
2. On the side of the Exploitation
Exploitation with large scale the availability of natural resources by foreign companies
into Indonesia as the country with the abundant natural resources compared to other countries.
There is a possibility also exploitation of foreign companies could damage the ecosystem in
Indonesia, while the regulation of investment in Indonesia has not been strong enough to keep
the natural conditions, including the availability of natural resources contained.

3. On the side Employment

The negative impact on the employment side can be seen from the side of education and
productivity Indonesia is still unable to compete with workers coming from Malaysia, Singapore,
and Thailand as well as the industrial foundation for Indonesia alone makes Indonesia is ranked
fourth in ASEAN. According to Media Indonesia, Thursday, March 27, 2014, with the market for
goods and services freely would result in foreign workers to easily enter and work in Indonesia
resulting labor competition increasingly fierce in the field of employment.

CHAPTER III
COVER
3.1 Conclusion
The conclusion is that the economic society asean is tough competition in the field of
labor in the lead-free market asean or free trade incorporated in union nations - nations asean,
ASEAN Economic Community is a term we hear a lot lately, this term often appear in various
wide print and electronic media. Maybe we advance about the terms of the European Economic
Community which have been born more than five decades ago. In general, both almost the same
that distinguishes only those in Europe while we are in South East Asia (ASEAN). To understand
the meaning and importance of the ASEAN Economic Community, let us consider the following
discussion, please observe the following information carefully.