ASEAN Economic Community Research Articles

INTERNATIONAL ISLAMIC BANKS’ POPULARITY AMIDST THE ASEAN ECONOMIC COMMUNITY: INSIGHTS FROM INDONESIA AND MALAYSIA

The establishment of the ASEAN Economic Community (AEC) aimed to achieve regional integration among all ASEAN member states, with particular emphasis on financial integration. Islamic banking is in line with the broader goals of the AEC, as an alternative financial system, helping to build a more resilient and inclusive financial system in the region. Because of this resiliency and inclusiveness, Islamic banks have been encouraged to develop into international banks in the ASEAN region through increasing their assets and earnings. This paper aims to examine the position of International Islamic banks (IIb) in the AEC under its conventional banking services: OCBC Bank from Singapore, Maybank and CIMB Bank from Malaysia. Through the analysis of banking trends, this qualitative study compares the level of popularity of those banks in Indonesia and Malaysia, the two Muslim-majority countries in ASEAN, after the initial establishment of the AEC period in 2016 to 2024. The findings indicated that the most popular Islamic financial services in Malaysia are provided by Maybank, while the most well-known Islamic financial services under IIb in Indonesia are provided by CIMB Bank. This paper provides an overview of the globalisation of IIb in ASEAN and fills a research gap on the development of IIb, particularly within the AEC.

Determinant factors of gross domestic product (GDP) in Association of Southeast Asian Nations (ASEAN) member countries

Background The gross domestic product (GDP) of Association of Southeast Asian Nations (ASEAN) member states can be used to determine their overall economic growth. In order to increase GDP, all emerging nations in Southeast Asia are stating to depend on foreign direct investment (FDI), the tourism industry, international visitors visiting ASEAN member nations banking credit, and low inflation rates. High inflation is a problem that developed and developing countries will definitely face. One of the problems faced by ASEAN member countries is that most of the member countries are in the developing country category. For ASEAN member countries, high inflation levels will encourage economic instability. GDP is less than optimal because of these classic problems in developing countries so that economic growth is not as planned. The ASEAN Economic Community (AEC), which ASEAN established, is seen as a way to reduce unemployment, alleviate poverty by boosting the travel and tourism industry and increasing investment, as well as to offer or distribute credit to businesses at low interest rates in order to boost GDP. The purpose of this study is to investigate and analyze how the GDP of ASEAN member nations is affected by FDI, foreign visitors, bank credit, and inflation. s: We analyzed panel data for seven ASEAN members from 2002 to 2020. FDI, foreign tourists, banking credit, and inflation are the research factors examined as independent variables that have an impact on GDP, the dependent variable. Results The study’s findings indicate that while inflation has a large negative impact on GDP, FDI, foreign tourism, and bank credit have a considerable positive impact on GDP. Conclusions FDI, foreign tourists, bank credit, and inflation have a significant influence on GDP in ASEAN member countries.

Literature Review: Faktor Pengaruh Wirausaha dalam Perspektif Psikologi

ASEAN Economic Community or ussualy called AEC are economic integration agenda by country in the ASEAN. AEC contribute huge impact on economic sector in Indonesia, but also gave both hope and challenge to people in Indonesia. AEC cause Indonesian workers need to compete harder with foreign workers, because that make the jobs offer more and more limited than before. Entrepreneurship is an activity that can create new jobs so that entrepreneurship is one answer to the problem of increasingly limited job opportunities. This article reviews previous research and articles with similar themes with the aim of providing an overview of the influencing factors of entrepreneurship from a psychological perspective. Based on several literature studies, it is concluded that there are various internal and external factors that influence entrepreneurship. Further research and studies are needed in the fields of psychology and entrepreneurship.

Resilience in the Face of Uncertainty: Navigating Supply Chain Challenges Through Proactive Risk Surveillance and Mitigation Strategies among SMEs in ASEAN countries

Background Supply chain risk management is crucial for the consumer products industry due to its vulnerability to uncertainties and risks. This study investigates the relationship between supply chain risks and performance among SMEs in the ASEAN countries. Supply chain performance, defined as meeting end-customer demands, involves ensuring commodity availability, on-time deliveries, and maintaining sufficient inventory and capacity across organizational boundaries from raw materials to the final consumer. Methods The study utilized a sample of 385 entrepreneurs from the consumer products industry in ASEAN countries. The research was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to establish the correlation between supply chain performance and risks. Factors related to the ASEAN Economic Community (AEC) for economic integration and regional trade agreements were incorporated to understand the diverse economic development, infrastructure, and regulatory environments across nations. Results The analysis revealed a strong correlation between supply chain risks and performance. Entrepreneurs in the consumer products industry should collaborate closely with governmental organizations to address the unique challenges posed by regulatory landscapes, cross-border logistics, and geopolitical risks within the ASEAN region. Adapting to cultural nuances and market variations, along with optimizing logistics and infrastructure, are crucial for successful supply chain risk management. Conclusions Effective supply chain risk management significantly enhances the performance of the consumer products industry’s supply chain. Entrepreneurs in this sector should align their strategies with regional and national governments to proactively address issues and mitigate risks. Continuous monitoring and adaptive measures are necessary to handle emerging risks in the dynamic market landscape. The study provides valuable insights for policymakers, suggesting that supportive frameworks and policies are necessary to bolster SME capabilities in risk management. By fostering a collaborative environment between the public and private sectors, ASEAN countries can enhance overall supply chain resilience. Future research could explore sector-specific risk management practices and their impact on supply chain robustness, underscoring the imperative for SMEs to adopt proactive and integrated risk management approaches to thrive in a complex and evolving economic environment.

MSME Development and Growth Strategy in Indonesia: Challenges and Opportunities in the Digital Economy Era

This study is focused on the development of small and medium enterprises (SMEs) growth in Indonesia. Various literature sources have been consulted to address the existing problems, and secondary data from relevant agencies such as BPS, BI, and the Ministry of Cooperatives and SMEs have been used. The challenges faced by SMEs in enhancing their business capabilities are multifaceted, encompassing several indicators. These include insufficient capital, both in terms of quantity and sources, inadequate managerial and operational skills in organizing, and limited marketing opportunities. Moreover, there is also unhealthy competition and economic pressures leading to a restricted and narrow business scope. It is crucial to address these concerns, especially in anticipation of Indonesia's participation in the ASEAN Economic Community (AEC) and the resulting open market. It is imperative for SMEs to enhance their competitiveness. However, these problems can be effectively tackled through various policies that facilitate easy access for SMEs to the banking industry. The fact that only 13.6% of credit growth is disbursed by the banking sector demonstrates that capital-related issues can be easily resolved, subsequently impacting management and enabling the production of more competitive products. By effectively addressing the challenges posed by the AEC, the government's concerns can be better addressed.

Analysis of Rice Trade and Food Security in Southeast Asian Countries

The rice trade serves to maintain sufficient rice stocks to meet domestic country demands. The world’s main rice exporters and importers are located in the Southeast Asia region, so the volume change of traded rice can affect the flow of trade. Given the strategic importance of rice, numerous nations have stepped in to control the domestic rice market, to ensure political stability as well as food security. This article aims to examine how the rice trade has evolved in Southeast Asia with respect to food security. The study aims are addressed by the application of the descriptive analysis method. The findings indicate that from 110.5 million tones in 2010–2011 to 128.3 million tones in 2021–2022, Southeast Asian countries accounted for 1.22% of global rice imports, >22% of the world’s total rice consumption. In the meantime, the annual growth rate of rice exports was 3.3%. Over the past 10 years, ASEAN’s net rice exports have made up 53.3% of the world’s total and are expected to reach about 54.8%. Southeast Asian countries intervene in the rice market through international trade policies, both in the form of export bans and domestic rice price stabilization policies, to maintain rice stocks to strengthen the level of food security. Southeast Asia’s economic integration through the ASEAN Economy Community is an important moment to become the basis for achieving food security at the regional levels while at the same time making the rice market more open among Southeast Asian countries. Keywords: rice, trade, policy, Southeast Asia

ASEAN Digital Economy Framework Agreement (DEFA): Opportunities and Challenges for Vietnam

Vietnam is a key player in the ASEAN digital economy, focusing on digital integration and collaboration. The ASEAN Digital Integration Framework Action Plan 2019-2025 and the ASEAN Digital Masterplan 2025 outline the policy landscape for digital integration. ASEAN member states have signed agreements and memorandums of understanding to foster cooperation in the digital economy. However, challenges such as skill gaps, cyber security, and regulatory gaps need to be addressed. The Digital Economy Partnership Agreement (DEPA) is seen as a key venue for increasing cooperation and consistency of digital trade rules in the Asia-Pacific region. ASEAN has been actively involved in global and regional discussions on cybersecurity, aiming to galvanize regional states into collective action against malicious cyber activities. The 20th Asian Economic Community council adopted the Bandar Seri Begawan Roadmap (BSBR) to accelerate ASEAN's economic recovery and digital economy integration in October 2021. This article also applies a qualitative method with secondary data. Modular Digital Economy Agreements (DEA) may be an appropriate model for facilitating digital trade alignment with international trading partners.

IUS Constituendum Of Cross-Border Insolvency Regulation In Asean (Analysis Of The Uncitral Model Law On Cross-Border Insolvency And The European Union Regulation On Insolvency Proceedings)

Currently, ASEAN has an economic integration program that is stated in the ASEAN Economic Community Blueprint. As is well known, the European Union is the only regional organization that has succeeded in creating economic integration in its region supported by a unified law. One of the legal unification that needs to be initiated by ASEAN in supporting its economic integration is cross-border insolvency regulation. Some international legal instruments that can be a reference for the establishment of the ASEAN Cross-border Insolvency Regulation include the UNCITRAL Model Law on Cross-Border Insolvency and EU Regulation 848/2015 on Insolvency Proceedings. However, the comparison between ASEAN and the EU is not equivalent. ASEAN is a regional organization that is intergovernmental in nature, while the EU is a regional organization that is supranational in nature. Therefore, the comparative approach and statute approach are the right approaches in this article's writing. As for the research method used in this article writing is normative research. The objectives of this article are to describe the legal personality of ASEAN and the European Union in relation to the establishment of cross-border insolvency regulation and provide an overview of the substance of the UNCITRAL Model Law on Cross-Border Insolvency and EU Regulation 848/2015 to provide a reference for ASEAN to from cross-border insolvency regulation.

RHETORICAL STRUCTURE OF PRESENTATIONS AT THE ASEAN FEDERATION OF ACCOUNTANTS (AFA) CONFERENCE

Members of the ASEAN accountant community are required to participate in the Continuing Professional Development (CPD) Programme as part of the lifelong learning program for accountants. One of the activities of the CPD Program is to carry out a conference presentation (CP), whereby presenters discuss issues and offer solutions in accountancy organisations and professional development in the region. This study examined the move structure of the CP presented by professionals who contribute to the development of accounting services, the accountancy profession, and the ASEAN Economic Community (AEC). The data consist of 13 conference presentations collected from the ASEAN Federation of Accountants (AFA) conference. The presenters are non-native speakers representing organisations that provide accounting services in the ASEAN region. Data were audio recorded and then transcribed. The findings showed that the presentations contain a structure that discusses the organisation's concerns and solutions for accountancy issues. It includes presenting the background of the study, the need for the proposed solution, describing the solutions, and evaluating the results. This study provides insight into the move structure of a conference presentation in a CPD program. It highlights the professional competence and professional practice of a disciplinary-based CP by accountants in the ASEAN region.

Inovasi Produk Untuk Meningkatkan Omzet Penjualan Pada Usaha Mikro Kue Tradisional “ Puji Lestari “ Di Menur Pumpungan Surabaya

Since the implementation of the ASEAN Economic Community (AEC) at the end of 2015, it should encourage all economic actors, including SMEs and Micro Enterprises, to improve themselves in order to improve the quality of production of both goods and services. If this is not done, then Indonesia will be an "soft" market for other ASEAN countries because Indonesia has the largest population (population size) in ASEAN, namely no less than 270 million people. SMEs and Micro Enterprises, which are the embodiment of people's economic democracy, will be very hard hit if the heavy flow of goods and services from various ASEAN countries invades the Indonesian market. Realizing this, strengthening (empowering) SMEs and Micro Enterprises is a necessity and necessity to be able to find a national identity that has comparative advantage and competitive advantage. This activity begins with identifying existing problems and then finding a method for solving them. The method used is by providing training and mentoring. The results that have been achieved are the ability of the Traditional Cake business to optimize its sales by using local raw materials. In this way, the Traditional Cake Micro Business "Puji Letari" can improve its capabilities in the field of production and business management. These outcomes are an indication of increased business empowerment.

Identifying the Influence of Foreign Direct Investment Toward the ASEAN Economic Community 2025

ASEAN as a region has a great economic potential, which explains the large interest in terms of investment in the region. The ASEAN Economic Community (AEC) cooperation program is also a milestone in increasing foreign investment in ASEAN. This study uses a quantitative approach, with the subject of this research being 10 ASEAN countries in 2015–2021. The dependent variable used in this study is foreign direct investment, and the independent variables are government effectiveness, political stability, trade openness, and the workforce. The data in this study comes from the world bank. The analytical method applied in this study is the panel data regression analysis method. Based on the research results, it can be concluded that trade openness and labor force had a positive and significant impact on foreign direct investment in 10 ASEAN countries in 2015–2021. At the same time, government effectiveness and political stability had a positive but insignificant effect. The results of simultaneous testing show that government effectiveness, political stability, trade openness, and the workforce influenced foreign direct investment in 10 ASEAN countries in 2015–2021. The government can use this study in determining foreign investment policies, especially those related to maintaining a stable investment climate. Keywords: ASEAN, foreign direct investment, government effectiveness, labor force, political stability, trade openness

Determinant factors of gross domestic product (GDP) in Association of Southeast Asian Nations (ASEAN) member countries

Background The gross domestic product (GDP) of Association of Southeast Asian Nations (ASEAN) member states can be used to determine their overall economic growth. In order to increase GDP, all emerging nations in Southeast Asia are stating to depend on foreign direct investment (FDI), the tourism industry, international visitors visiting ASEAN member nations banking credit, and low inflation rates. High inflation is a problem that developed and developing countries will definitely face. One of the problems faced by ASEAN member countries is that most of the member countries are in the developing country category. For ASEAN member countries, high inflation levels will encourage economic instability. GDP is less than optimal because of these classic problems in developing countries so that economic growth is not as planned. The ASEAN Economic Community (AEC), which ASEAN established, is seen as a way to reduce unemployment, alleviate poverty by boosting the travel and tourism industry and increasing investment, as well as to offer or distribute credit to businesses at low interest rates in order to boost GDP. The purpose of this study is to investigate and analyze how the GDP of ASEAN member nations is affected by FDI, foreign visitors, bank credit, and inflation. s: We analyzed panel data for seven ASEAN members from 2002 to 2020. FDI, foreign tourists, banking credit, and inflation are the research factors examined as independent variables that have an impact on GDP, the dependent variable. Results The study’s findings indicate that while inflation has a large negative impact on GDP, FDI, foreign tourism, and bank credit have a considerable positive impact on GDP. Conclusions FDI, foreign tourists, bank credit, and inflation have a significant influence on GDP in ASEAN member countries.

Analisis Integrasi Dinamis Pasar Modal Indonesia terhadap Pasar Modal ASEAN Pasca Berlakunya Masyarakat Ekonomi ASEAN

This research intends to understand the dynamic integration of the Indonesian capital market with the ASEAN Capital Market before and after the implementation of the MEA (ASEAN Economic Community) or AEC. The sample used in this observation is a series of data collected in the period January 2011 to December 2015 before the MEA was implemented and January 2016 to December 2022 after the MEA was implemented, while the capital markets studied were the Indonesian Stock Exchange, Kuala Lumpur Stock Exchange, Stock Exchange Singapore, Philippine Stock Exchange and Thai Stock Exchange. This research analyzes the dynamic integration of the Indonesian capital market towards ASEAN after the implementation of the MEA using the Orthogonal Generalized Autoregressive Conditional Heteroscedasticity (OGARCH) method which can manifest the level of integration in a measurable way. The results of this research are that there is co-movement among the ASEAN capital markets studied, however, not all ASEAN capital markets are fully integrated. The results of this observation also found that the Indonesian Stock Exchange, Kuala Lumpur Stock Exchange, Thailand Stock Exchange and Singapore Stock Exchange were integrated but the Philippine Stock Exchange was not. The Philippine Stock Exchange tends to be segmented rather than integrated.

Foreign Direct Investment in ASEAN Airline Industry

The development of aviation market in Southeast Asia after the Covid-19 pandemic is promising. More aircraft are delivered to the Asia-Pacific region, including the Association of South East Asian Nations (ASEAN) Member States. The introduction of ASEAN Open Skies (also known as ASEAN Single Aviation Market) a decade earlier together with ASEAN Economic Community Blueprint 2025 goals for an integrated and cohesive regional economy highlight the importance of a seamless air connectivity. Liberalisation of the airline industry in ASEAN Member States is crucial to restart the airline industry pre-pandemic and to grasp the so-called Asian century momentum. However, ASEAN Member States are reluctant towards liberalisation efforts, maintaining protectionism on both freedoms of the air (traffic rights) as well as foreign direct investment (ownership and control). Existing legal framework at regional level, namely ASEAN Framework Agreement on Services (AFAS) and ASEAN Trade in Services Agreement (ATISA), only received lukewarm attention from ASEAN Member States. This article discusses the urgency to recall the commitment of a gradual liberalisation based on AFAS and ATISA among the ASEAN Member States, the implementation of which will lead to the establishment of a regional community carrier which benefits ASEAN citizens.

Initiating the Implementation of Eco-Labelling to Build the Pivot of Green Economy Growth in the Asean Economic Community

Abstract The ASEAN Economic Community (AEC) seeks to align ASEAN with global “green growth” trends by developing an integrated eco-labelling standard for products traded among its member countries. This article presents a comparative study using a normative legal research method that draws lessons from other regional trade organizations, such as the European Union. The objective of this research is to determine the feasibility of designing an ASEAN Eco-labelling standard that is tailored to the characteristics of each ASEAN country’s eco-labelling policy. The labelling will be managed by an independent certification body headquartered at the ASEAN Secretariat, with representative offices in each ASEAN country.

Complexity of Legal Harmonisation in Southeast Asia: A Diversity of Legal Systems & Languages

The eleven countries of the Southeast are quite diverse in terms of culture, religion, language and legal system. All members except Thailand were colonies of European powers who introduced their legal systems. Even Thailand, which was never colonised, was influenced by the laws of the European powers. This European influence has resulted in a range of political and legal systems. Although English is the working language of ASEAN, it is the national language of none. Cambodia, Lao PDR, Myanmar, and Thailand use a non-Latin script, and Vietnam uses Latin-based orthography to complicate matters further. The diversity of national and official languages is a crucial element impacting the ability of ASEAN member states to harmonise their laws, so there is a common approach to prosecuting international criminal activity. Such an approach is critical as the ASEAN Economic Community moves to greater integration. The article briefly describes the importance of language in understanding legal concepts. Then, it describes the variety of legal systems in place across Southeast Asia, which, other than the case of Thailand, are vestiges of their colonial past. The article discusses three possible models for harmonisation/ cooperation: a set of model laws, accession to an international treaty, or an agreement to cooperate. In the case of Brunei Darussalam, Malaysia, the Philippines and Singapore, where legal systems use English, all three models could be used. For the other seven countries, because of their language diversity, it is argued that the set of model laws is inappropriate. The preferred option is a treaty or convention that sets out the scope and minimum requirements to be included in the local law and the obligations to cooperate. The Convention on Cybercrime (Budapest Convention) is a possible model. Keywords: Southeast Asia, Cybercrime Convention, Law harmonisation, Legal translation, Model law

The Effect of Marketing Mixes on Customer Purchase Decisions on Prudential Companies of Bandung Branch Office

At present, the sales competition for insurance products has increased dramatically starting in the last few years. In addition, competition began to become even more fierce, marked by the ASEAN Economic Community (MEA) organization, which started its activity in early 2016. Insurance sales competition was assumed to be more fierce with the presence of MEA. Some insurance companies expected to experience a decline in sales due to emerging competition. It will not occur only with domestic insurance companies but also with insurance companies from countries that are members of ASEAN. With the increasing competition, it is estimated that insurance sales will decrease, but the opposite increase in sales happens at Prudential. The author seeks to help other insurance companies increase insurance sales by conducting research at Prudential to try to find out the cause of the increase in sales.This research was made and conducted based on a literature review that was used as a reference in the preparation of research. References used by the author are in the form of theories about consumer behavior, marketing mix, insurance concepts, marketing mix concepts, and research that has been done before this study.This study aims to determine whether the marketing mix has an influence on insurance product purchasing decisions at the Prudential Bandung branch office. Research belongs to quantitative research and, based on its objectives, is classified as descriptive studies. The sample is determined by the Accidental Sampling technique, which is one of the techniques belonging to the Non-Probability Sampling Method by selecting individuals who are easier to find with a total sample of 96 respondents generated through calculations in the sampling technique. Data were collected using questionnaires and analyzed using descriptive analysis and multiple linear regression analysis. Research and testing were carried out assisted by using the SPSS program ver. 22.From the results of the study, it was found that product variables and process variables are elements of the marketing mix that have the most significant influence on purchasing decisions. Other results from the study indicate that seven marketing mix variables simultaneously influence customer purchasing decisions.

ANALISIS POTENSI KONVERGENSI EKONOMI NEGARA ANGGOTA ASEAN-10 TAHUN 2015-2021 DAN FAKTOR-FAKTOR YANG MEMPENGARUHINYA

In 2015 is the year of the acceleration of the establishment of the ASEAN Economic Community (AEC), therefore it is necessary to analyze the economy of each member country based on factors that affect the convergence process. This study aims to analyze the level of convergence of economic growth among ASEAN-10 member countries in 2015-2021. The data used is secondary data obtained from the world bank website. The analytical methods used in this study are sigma convergence and beta convergence. The calculation of sigma convergence uses mathematical analysis of the coefficient of variation of GDP per capita of ASEAN-10 member countries. While the calculation of beta convergence uses panel data regression analysis with a fixed effect model approach. The results showed that there was no sigma convergence among ASEAN-10 member countries, indicating that there was no decrease in inequality among member countries. The results of the analysis on beta convergence show that there is absolute and conditional beta convergence at a rate of 7,5% and 3,1%. It was found that the Foreign Direct Investment and Total Labor Force variables did not have a significant effect, while the Trade Openness variable had a significant effect.

Implementasi Program Pemagangan dalam Negeri Pada Dinas Tenaga Kerja dan Transmigrasi Provinsi Kepulauan Riau

The increasing unemployment is a result of the instability of the economic structure, which has made it difficult to develop employment opportunities. On the other hand, the lack of competence in the Asean Economic Community has led to an increase in the number of job seekers, both within the country and from other neighboring countries. To overcome this, workforce competency must be increased, including an apprenticeship program that passes competency tests held by the National Professional Certification Agency (BNSP). The aim of this research is to determine the implementation of the Domestic Apprenticeship Program of the Riau Islands Manpower and Transmigration Service. Researchers use qualitative methods and descriptive approaches to analyze data according to this type of research, namely descriptive. The results of this research are that the Riau Islands Province has been able to show that the quality of apprenticeship participants after participating in the Apprenticeship Program is able or ready to compete in the world of work. The advice given in this research is that the government and the business world coordinate more frequently regarding domestic apprenticeship program activities in order to find solutions regarding the quality and workforce needs needed by the business world and the industrial world today in order to compete with graduates from outside the Riau Islands Province.

Determinants of Import in ASEAN Economic Community

Introduction: Imports are an important component of economic development in developing countries, including in the ASEAN Economic Community. Purpose: The aims of this study to analyze the determinants of import in ASEAN Economic Community. Methodology/Approach: The research method used is panel data analysis from 2010-2019. The research variables include imports as the dependent variable and export variables, exchange rates, population, inflation, GDP and interest rates as independent variables. This study is to analyze the determinants of imports in the economies of ASEAN community countries starting from the results of the Chow test and Hausmen test which compare the static and dynamic fixed effect panel data analysis models. Findings: The results of this study indicate that imports for ASEAN economic community are influenced by the variables of exports, FDI and population. The results of this study also show that imports for ASEAN economic community are a necessity to support their economic development. Originality/Value/Implication: The conclusion and recommendation from this research is that imports are an important component in economic development in ASEAN economic community, so it is necessary to have an integrated policy among ASEAN economic community to build economic cooperation to reduce economic dependence from outside. ASEAN economic community need to improve economic efficiency and international competitiveness to encourage exports of flagship products in international markets.