ASEAN Economic Community Research Articles

ASEAN Territorial Trading Liberalization Through ASEAN Charter Ratification for Indonesia Under The Legal Aspect Review

ASEAN Charter is the most important “legal instrument” and sucessor of Bangkok Declaration 1967. It also contain the status and position of ASEAN on the including agreement. The Charter come into effect since 15 December 2008 after ratification of ten ASEAN member-states. Indonesia was ratifying by Act No.38 of 2008 on ratification of ASEAN Charter. It had a legally binding to Indonesia. The content related to the establishment of ASEAN Economic Community in economy, socioculture, and security politics. Moreover, the agreement comprise a critical issue, trading liberalization or “ASEAN Single Market” through ASEAN Economic Community. Therefore, the ratification of ASEAN Charter gives significant influence to the Indonesia in the future. By the reasons, the objectives of research are, first, analyze the implication of Act No.38 of 2008 on ratification of ASEAN Charter to Indonesia in correlation with ASEAN Economic Community under legal aspect review, and second, analyze the challenge and opportunity in participation of ASEAN Economic Community as indonesia has ratified the Charter.

THE IMPACTS OFFREE MOVEMENT OF SKILLED LABOUR IN ASEAN UPON VIETNAM

In the context of the 4.0 technology revolution creating an economic platform transformed from a model based on low-cost labor to a knowledge economy requiring highly skilled workers, Vietnam has witnessed the sharply increasing demand for skilled workers. Since joining ASEAN, Vietnam has proactively participated and implemented free movement of labor commitments within the ASEAN Economic Community. This paper aims to clarify the impact of these commitments on the Vietnamese policies and laws on attracting skilled labor from other ASEAN member states. The paper analyzes both positive and limited aspects of these impacts before 2003 and since 2003 until now. The results of this study show that Vietnam's commitments to the free movement of labor in ASEAN positively impact the completion of Vietnam policy and regulations on attracting ASEAN skilled labor, but the level of impacts is limited.

Economic position of Vietnam in ASEAN economic community (AEC)

The process of Vietnam participating in ASEAN in the past 26 years (1995-2021) has shown that it has many practical contributions to this organization. In a new international and regional context, Vietnam with its new position and strength after 35 years of renovation gives it opportunities to contribute more to the solidarity and integration of ASEAN. In addition, the formation of the ASEAN Economic Community (AEC) is a chance for Vietnam to expand its development for the Southeast Asian community’s peace, cooperation, and development in the future. After 26 years of participating in this regional organization, Vietnam has made many significant contributions to turning ASEAN into a framework of peaceful cooperation for mutual development. From ASEAN-6 to ASEAN-7 and ASEAN-10, it is clear that as a responsible member, Vietnam's position and influence in this region have been increasingly recognized. Through various dialogue mechanisms, Vietnam today has become an important and comprehensive economic partner of AEC. In this study, the research team used statistical data from the World Bank, the General Statistics Office of Vietnam, the Global Competitiveness Index (GCI) of the World Economic Forum, labor productivity of the Asian Productivity Organization (APO) to clarify Vietnam's economic position in AEC. The collected data shows that Vietnam's economic position within AEC countries has increased; however, it still faces many challenges and the risk of economic backwardness. Based on that, the study proposes some solutions to enhance Vietnam's economic position in AEC.

THE ASEAN ECONOMIC COMMUNITY AND TRANS-BORDER FRANCHISING: EVIDENCE FROM JAPANESE CONVENIENCE STORE CHAINS

Although trans-border franchising is an important factor to achieve the objectives of the ASEAN Economic Community to 2015 and to 2025, Southeast Asia remains a fragmented franchising area. This argument is substantiated by infrastructure, institutional and regulatory factors. The authors explore the activity of convenience store chains in Southeast Asian countries and distinguish their intra-country and pan-regional specificity to finally reveal the extent to which franchising has proved effective for developing this business across the region. Premised on the analysis of Japanese convenience store chain 7-Eleven, the authors conclude that although franchising has been efficiently implemented by 7-Eleven, the obtained results are a function of broader macro-factors generated by Japanese industrial and technological policy in Southeast Asia as key prerequisites for success. The article adds academic and expert value to the existing literature on ASEAN, as it analyzes the ASEAN Economic Community from a trans-border franchising perspective in Southeast Asia, since this analytical focus has been absent to date.

ЦИФРОВАЯ ПОВЕСТКА ЭКОНОМИЧЕСКОГО СООБЩЕСТВА АСЕАН – 2025 И ПОЛИТИКА КОМПАНИИ СИНГАПУРСКИЕ АВИАЛИНИИ

As the deadline for the establishment of the ASEAN Community to 2025 is approaching, the association attaches increasing importance to the digital dimension of the ASEAN Economic Community (AEC). Arguably, the ASEAN is far from fulfilling its goals, mostly, in regard to making Southeast Asia a unified manufacturing and doing business area. Concerning the association’s plans to provide intra-ASEAN cooperation with digital support, many obstacles remain in place. In these circumstances, much will depend upon the “down-top” vector. Specifically, Southeast Asian industry and business champions, among which the company Singapore Airlines figures prominently, can lead by example. The article scrutinizes the measures implemented by the Sin-gapore Airlines to digitalize its business activity with an emphasis on the COVID-19 pandemic period and distinguished fundamental factors behind their success. The author argues that although the experience of the Singapore Airlines is an individual example rather than a general pattern of business activity in Southeast Asia, regional companies will be increasingly introducing similar practices, or at least their major components, in the years to come.

Enhancing Healthcare Professional Practice in the Philippines toward ASEAN Integration through the Continuing Professional Development Law

The Republic Act 10912, otherwise known as the Continuing Professional Development (CPD) Act of 2016, was passed into law to promote and upgrade the practice of healthcare professions in the Philippines. Since the establishment of the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC), CPD has been considered an area of development through which Filipino professionals are trained to become globally competitive. The Philippine government upholds several agreements made among ASEAN member-states, including recognizing professionals in every ASEAN country, facilitating the mobility of professions within the region, exchanging expertise on standards and qualifications, promoting best practices, and providing valuable opportunities for the training and capacity building. This policy analysis paper evaluated the advantages and disadvantages of the new law in terms of enhancing the capability of professionals through CPD programs. Thus, this article identified the benefits and burden experienced by Filipino healthcare professionals since its enactment. To name a few, the advantages include improving professional competencies, acquiring and refining the necessary knowledge and skills for career advancement, achieving personal and professional growth, and becoming globally competitive while the disadvantages include high cost and expense, inaccessibility and unavailability of CPD programs, additional requirement despite the work overload, lack of support, time constraints among family and loved ones, and limitations of rest and relaxation. Policy directives in addressing these salient issues in the implementation of the law are also recommended. The CPD is indeed a critical factor in ensuring that Filipino healthcare professionals are empowered and globally competitive. In return, their societal contributions will benefit the country’s welfare and economic growth, continued development toward AEC and globalization, and community engagement within the ASEAN region through mobility.

Projecting the Mobility of School Teachers of Islamic Subject From Indonesia to Malaysia, Brunei Darussalam, and Thailand in the Era of Asean Free Market

This article deals with mapping of teacher’s competence for Islamic religious subject in facing ASEAN Economic Community. Since the free market has launched in 2015, ASEAN countries will transform to be a region in which goods, services, skilled workers and capital can move freely. It means that all skilled workers, including teachers of Islamic subjects, have the same access to get a good job suitable with their competence in ASEAN countries. To prepare such skilled workers, it is very important to understand and to map the competences standard of Islamic religious teacher set up by Islamic education institutions (schools) in ASEAN countries.We conclude that there are at least two basic competences and five additional competences required. Two basic competences are mastery of Islamic teachings (theology and law) and good command in Arabic, both written and spoken (muhadathah). While five additional competences are mastering local languages (Malay and Thai); English; writing and reading Malay-Arabic script (Arab-Jawi);performing Islamic rituals with a special reference to Shafi‘i’s school of thought; and computer literacy. To compete and to fulfill the demand of the above competences, it is needed to make sure that the implementation of the curriculum of Islamic Education Department in the Faculty of Islamic Education in Indonesian Islamic higher education has been going well, and to adopt as well as to change it as long as in line with the competences needed.

The Challenges of ASEAN Economic Community (AEC) in Sharia-Based Small and Medium Enterprises (SMEs) from The Social Capital Aspects

This study evaluated the attributes of social capital that influence the business performance of sharia-based SMEs in Pekanbaru. This research is expected to provide contributions and inputs for SMEs in facing the challenges they enconter in the era of AEC and for the government in making the policy. The methode used is a quantitative descriptive and an inferential analysis. The population of this study is all players in the Sharia-Based SMEs in Pekanbaru that is unknown numbers. In this research, there are 70 respondents. The results showed that the partial reciprocity significantly affected the performance of sharia-based SMEs; while norms, networks, values and proactive action also gave positive effects, but they were not significant. Simultaneously, the six attributes of social capital influenced on the performance of the SMEs significantly. The coefficient of determination is 0.664. It means that the variable of norms, trust, networking, reciprocity, value, and strong desire jointly determine the performance variable of 66.4%. Most of sharia-based SMEs are optimistic to resume the business in the era of ACE (Asean Community of Economi).

Analysis of the mitigation effects of corporate social responsibility on the negative impact of high leverage in ASEAN-5

One of the ASEAN Economic Community's intentions is to direct firms in ASEAN to society-oriented development. We investigate the impact of corporate social responsibility that is moderated by high leverage to sales growth in the region of ASEAN-5. The research sample consisted of 87 firms that were listed in the stock exchange of ASEAN-5, including Indonesia, Malaysia, Singapore, Thailand, and the Philippines during the period of 2014–2018. This research found a significant positive impact of corporate social responsibility moderated by a high leverage to sales growth. This research contributes to previous research on high leverage costs literature through reviewing existing determinants of high leverage costs including additional variables such as country-level factors in the ASEAN-5 region.

How Does Human Capital Spillover Inflow of Foreign Workers Affect Economic Growth?

The ASEAN Economic Community provides opportunities for foreign workers to enter Indonesia, including Central Java Province. The existence of these foreign workers tends to negatively and positively impact the regional economic growth of the country. Therefore, this study aims to analyze the effects of foreign workers’ human capital spillover inflow on the economic growth of Central Java. The Euclidean distance spatial weight matrix was used to calculate the spatial autoregressive model from 2015 to 2020. These results indicate that the presence of skilled foreign workers positively impacts increasing economic growth in Central Java Province. The influx of foreign workers, along with the influx of investment, encourages local workers to follow the performance of foreign workers. This study suggests a policy to encourage technology transfer from foreign workers to local workers. The government is also expected to strengthen local workers’ productivity to compete with foreign workers.

ASEAN Economic Community (AEC): An Empirical Impact Analysis

Regional Economic Integration is considered the most powerful method of ensuring productivity and attaining economic prosperity. ASEAN Economic Community established to achieve one vision, one identity, and one community is one of Asia's most promising regional economic integration. It aims to emerge as a leading integrated economy in the world. To establish this community, ASEAN adopted Blueprint-2015 in 2007; after implementing the community, it enhanced this blueprint and adopted Blueprint-2025 in 2015. The Blueprint-2025 mentioned five characteristics as the target for ASEAN Economic Community to be undertaken for 2016-2025. Besides, the blueprint also mentioned some significant elements associated with the characteristics. This study focused on the empirical analysis of these characteristics of Blueprint-2025. Therefore, this work used the data of the ten ASEAN countries from 2010 to 2019 by selecting some indicators representing the elements of these characteristics. The finding of this analysis suggested that a large number of the indicators have experienced a decent level of progress, whereas only a few failed to achieve the expected trend.

Determinasi Pakta AUKUS terhadap Keamanan Asia Tenggara

This paper is intended to analyze the determinations of the AUKUS Pact on the security of the Southeast Asian region. With this aim, the focus of the analysis will lead to the attitude or foreign policy of the countries of the Southeast Asian region and ASEAN's attitude towards the determination made by the AUKUS Pact towards the ASEAN Economic Community. The constellation of international relations in the Indo Pacific shows the struggle of two great powers, namely the United States and China. China's ambition to become a hegemonic regional power is manifested in economic maneuvers through the BRI and political maneuvers through the nine dash line claim in the South China Sea. This offensive Chinese activity poses a threat to the United States. As a reaction to China's maneuvers, the AUKUS Pact promises a balance of power as well as the potential to intensify Asia-Pacific security stability. The excesses of the constellation between the United States and China places Southeast Asian countries in a dilemma, including ASEAN which must be able to take on a role to accommodate common interests in Southeast Asia. This paper uses a historical perspective with the balance of threat theory from Stephen Walt. The findings from the paper are, first, the implications of the AUKUS Pact depend on the attitude of ASEAN member countries with two consequent models, namely creating security stability in the Southeast Asian region or causing security and peace instability; second, differences of opinion among ASEAN member countries emphasize ASEAN's inability to manage conflicts and all potential conflicts that threaten its regional security; third, the choice of balancing, bandwagoning or maintaining balance in different degrees between the United States and China is a rational choice for ASEAN member countries. The existence of the AUKUS Pact requires Southeast Asian countries to continuously develop their security mechanisms and strategies to address any potential that may occur in the future.
 
 Keywords: AUKUS Pact, China, United States of America, ASEAN, Balance of threat

Strategies to Enhance the Competitiveness of Malaysia Haulage Operators at Bukit Kayu Hitam-Sadao, Thailand Border in Facing the Establishment of Asean Economic Community (AEC)

The implementation of ASEAN Economic Community (AEC) has given some impact towards the cross-border activities for ASEAN countries. Competitiveness, single market, cross border logistics have been the main highlight for the haulage operators that provide a cross border service between Malaysia and Thailand. This paper is discussing the strategies that need to be taken by the government and haulage operators in making Malaysia especially Bukit Kayu Hitam as the logistics hub between Malaysia and Thailand. Malaysia needs to upgrade its Customs, Immigration and Quarantine (CIQ) Complex facilities, Information Technology investment and address the talent issue for drivers for Malaysia to prepare facing AEC.

HARMONIZATION OF COMMERCIAL TRANSACTION LAW IN THE ASEAN REGION: THE IMPORTANCE, POSSIBILITIES AND CHALLENGES

<em>The Southeast Asian region is viewed as a united block that is ASEAN. The ASEAN roots from a diverse economic system, culture, ethnic, technical, and educational system. In the modern-day globalization, economic globalization continues to develop as well. This economic globalization pushes the importance of having an integrated commercial transaction law of the ASEAN member states. The idea of integration that stems from a rapidly growing economic globalization results in an unavoidable demand for harmonization of commercial transaction law within the ASEAN region. As a united region that is the ASEAN, having different regulations to govern matters of cross border commercial transactions inter-ASEAN would hinder the effectiveness of each country’s law itself. Yet, the importance of having a harmonized commercial transaction law within the ASEAN region is still questioned. This paper will analyze on the importance of having a harmonized commercial law among the ASEAN member states, the possibility and challenges of developing such a harmonization and if possible, how the ASEAN Economic Community (AEC) is planning to develop a form of harmonization in its commercial transaction law.</em>

INTEGRASI REGIONAL: ARUS INVESTASI DAN IMPLIKASINYA TERHADAP PENERIMAAN PAJAK

The ASEAN Economic Community (AEC) has been established for several decades. The AEC is inspired by other regional communities. The situation strengthens each country’ economic and investment. Based on ASEAN Statistical Yearbook 2020, in 2019 the capital inflow to ASEAN amounted USD 158 Billion. The objective of this study is to investigate the cause and effect of these global phenomenon to ASEAN countries especially Indonesia. Also, this paper will elaborate FDI effect from the tax revenue point of view. This paper uses a qualitative method in order to obtain a deep understanding. We found several findings. First, there is a relation between the establishment of regional community and foreign direct investment (FDI). Second, FDI is beneficial to enhance the tax administration system especially country’s tax revenue.

ELIMINATION OF NON-TARIFF BARRIERS OF TRADE IN GOODS IN THE ASEAN REGION: WILL IT EVER WORK?

Within the framework of the ASEAN Economic Community (AEC), there is a mandate to promote trade liberalization with the aim of increasing intra-ASEAN trade. The realization of the AEC includes the existence of the free flow of goods, services and investments within the ASEAN region. In terms of trade in goods, the regulations within the AEC framework are intended to promote the establishment of single markets and production bases in the ASEAN region that does not only require the elimination of tariff barriers, but also non-tariff barriers. This article conclude that the NTB Regulations in the AEC 2015 are not very well implemented proven by the increase amount of NTMs imposed by ASEAN countries. It was found that several initiatives have been formulated in the AEC Blueprint 2025 in order to further eliminate non-tarrif barriers.

Indonesia’s coffee and cocoa agribusiness opportunities in Regional Comprehensive Economic Partnership trade cooperation

Following the agreement of the ASEAN Economic Community (AEC) in 2015, it has been approved that cooperation between ASEAN and the other five partner countries, namely China, Japan, Australia, New Zealand, and Korea, has been bound in new economic partnerships, Regional Comprehensive Economic Partnership (RCEP). The main objective of RCEP is to empower economic integrity and enhance the economic development of respective member countries. Coffee and cocoa are two of Indonesia’s important estate commodities for exports. A study focusing on coffee and cocoa agribusiness development to take advantage of RCEP was conducted in several production centers of rural areas. This paper aims to analyze the role of coffee and cocoa business in RCEP trade cooperation by: (i) understanding and analyzing trade on RCEP using RCA and RO, (ii) reviewing trade development in RCEP toward Indonesia’s coffee and cocoa performance using Gereffi analysis. This study was conducted in North Sumatra and South Sulawesi provinces. The study revealed an opportunity for coffee and cocoa to increase their market in the RCEP region but only with its high quality. Coffee and cocoa should be well prepared with significant, integrative, and comprehensive improvement. The government is suggested increasing the production and productivity of coffee and cocoa through intensive extension and closely working with the farmers.

Strengthening the Twenty-first Century Skills of University Students in Facing ASEAN Economic Community

This study aims to determine the strengthening of the 21st Century Skills of UPBJJ Pekanbaru and Pangkal Pinang students in dealing with the ASEAN economic community (MEA). The 21st Century Skills strengthening study was motivated by the low competition in economic politics in Indonesia. The study involved 379 students selected based on study programs at the Pekanbaru Open University and Pangkal Pinang. Data in the form of opinions and statements were collected using a questionnaire in the form of a questionnaire and essay. Data obtained were analyzed qualitatively and quantitatively. The results showed that UPBJJ Pekanbaru and Pangkal Pinang students were qualitatively ready to perform 21st-century skills, including digital era literacy, inventive thinking, memorable communication, high productivity, and spiritual norms and values. Based on quantitative data, there is no significant difference in strengthening the 21st Century Skills of UPBJJ Pekanbaru and Pangkal Pinang students.

ASEAN's economic security and regional economic cooperation: Past, present, and future

Since the end of the Cold War, ASEAN has continuously increased its level of integration into the global economy to enhance regional economic prosperity and stability. Given the conceptual fluidity of economic security in international relations, however, ASEAN's firm commitment to promoting positive synergies between economic and security interests warrants further attention. In this vein, this article examines the evolving nature of ASEAN's economic security with a focus on regional economic initiatives, including trade agreements and the ASEAN Economic Community. The article suggests that ASEAN can maximize its potential for economic security when it increases the credibility of its commitment to regional economic cooperation and integration. To do so, ASEAN should more effectively address the issues of weak institutional capabilities and domestic political conflicts over regional economic governance. It should also proactively respond to unexpected challenges from external factors, such as US–China rivalry and the COVID-19 pandemic.

PENGARUH STRATEGI DIVERSIFIKASI DAN KEPEMILIKAN MANAJERIAL TERHADAP KINERJA KEUANGAN

The emergence of the Asean Economic Community (AEC) has an impact on the wider openness of trade between countries so that competition between companies increases. Companies are looking for ways to improve its financial performance so that it can compete among the other competitors. Diversification strategies and managerial ownership can be applied by companies in improving the company's financial performance. Diversification strategy is a strategy that can be used to develop a business, expand market share, and increase competitiveness. Managerial ownership can be used to motivate managerial performance in improving financial performance. This study aims to analyze the effect of diversification strategies and managerial ownership on financial performance. The object this research is using manufacturing companies listed in Indonesia Stock Exchange (IDX) in 2016-2019. This research is a quantitative research with hypothesis testing. The sample used this study were 103 manufacturing companies selected using purposive sampling technique and using multiple linear regression analysis techniques. The results of this study prove that diversification strategy and managerial ownership has no effect on financial performance. The contribution of this research is as additional information regarding the effect of diversification strategies and managerial ownership on financial performance. Limitations of this study is the researchers only collected samples from the official website of the IDX and only use the research object manufacturing company. It is expected that further research can collect data not only on the IDX website but from the company's website and further research is expected to develop a research object.