NURUL HUSNA

Abstract

A lot of steps have been taken to evolve the world economy. It is either to evolve economy in the world as a whole, or specifically to evolve economy in particular regions, or even economy of each country itself.So many international economic Organizations were established to make the progress of economy escalation. The move was started from The Bretton Woods Conference, which officially known as the United Nations Monetary and Financial Conference in 1944. Bretton Woods was held to agree upon a series of new rules for the post-WWII international monetary system, Bretton Woods Conference finally resulted World Bank and International Monetary Fund (IMF). Other than Bretton Woods, there was the establishment of the Association of Southeast Asian Nations (ASEAN) in August 1967, followed by other regional economic organizations, such as the African Economic Community (AEC) in 1991, and then the European Union (EU) in 1993, and so on and so forth. All these international and regional economic organizations have proven on how every stakeholders all over the world tried to maximize their efforts on escalating the economy. Even if being recognized as one of the founders of ASEAN, Indonesia is still categorized as developing country according to its education level, life expectancy, and also the GDP. Basically, in terms of development in several sectors, Indonesia is not as good as other countries in ASEAN, for example in technology sectors, and so on and so forth. This gap is not only happened specifically to Indonesia, but all the countries in ASEAN initially have differences in terms of capability of development and these things actually be the real challenges and obstacles for each countries to face AEC program itself. Thus, this paper will examine the current challenges and obstacles for Indonesia to face ASEAN Economic Community, how Indonesia could cope up with the gap of development with other countries and ASEAN, and also Indonesia’s moral obligation as a country member of ASEAN to provide the nation decent and proper industrialized preparedness.

Keywords: Indonesia, ASEAN Economic Community, Developing, Economy, Inequality of Development

INTRODUCTION

1.1 Background

The AEC was formally established as part of the ASEAN Community on 31 December 2015. AEC’s antecedents go back to the origins of the group, in which it hopes for economic cooperation figured prominently in the first and originating ASEAN Declaration signed in 1967.[1] The Declaration stipulates the aim and purpose “…to accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of South-East Asian Nations.”[2]

After a number of early attempts, economic integration in the region intensified in the early 1990s following the adoption of the ASEAN Framework Agreement on Economic Cooperation and the ASEAN Free Trade Area, agreed in 1992. The AEC was first envisioned as the goal of economic integration by leaders in the 2003 Bali Concord II, with 2020 set out as the original completion date. This agreement has boosted AEC to go further than the group has ever ventured, not only in the pledges made by members but also in real change and implementation. This is visible across a range of economic policies from the virtual elimination of intra-regional tariffs, gradual removal of formal restrictions in the services sector, continued improvement of the investment regime, reduction in trade costs through the streamlining of cross-border trade processes, enhancement of business friendly regulatory framework and connectivity. Just as importantly, targeted efforts have been made at narrowing the development gap as well as integrating the region to the global economy.[3]

To recap, the objective of the AEC is to improve economic stability in Southeast Asia, to address economic matters among ASEAN member countries and to improve ASEAN competitiveness and enable members to compete with China and India in attracting foreign investment. The AEC is expected to create an integrated market for capital, goods and service as well as labor. The impact of this will be a free flow of goods and services, investment, credit and skilled workers among ASEAN countries. Another positive impact is that Indonesian investors may expand their businesses without facing restrictions in neighboring countries. Conversely, Indonesia can draw investment from ASEAN investors.[4]

The government of Indonesia has issued Presidential Instruction (Inpres) No. 11/2011 on the implementation of the AEC blueprint in preparing ASEAN free trade. The blueprint mentions twelve priority industries to be integrated by the government, namely agribusiness, automotives, electronics, fisheries, rubber products, wood products and textiles. The remaining five come from the services sector, comprising air transportation, health, tourism, logistics and information technology. In the AEC era, these industries will be integrated to allow for a free flow of goods, services, investment and labor. According to the Industry Ministry, Indonesia currently has nine industries where the country can excel in the ASEAN market, namely agro-based businesses (CPO, cacao and rubber), fish and fish products, textiles and textile products, footwear, leather and leather products, furniture, foods and beverages, fertilizers and petrochemicals, machinery, base metals, iron and steel. Other industries, like manufacturing and tourism, are yet to be developed to reach their full potential.[5]

However, Indonesia still has its own obstacles to reach their potentials. Those potentials as like the lacking of human resources’ quality, particularly for entrepreneurs. Skills and creativity are selling points in business. As for professionals, they must enhance their skills, competence and professionalism. Other obstacles are the lacking of MSMEs’ (Micro, Small, and Medium Sized Enterprises) empowerment. With high quality human resources in terms of skills and creativity, and the maximum empowerment of MSMEs, Indonesia can attract investors and spread their wings in other ASEAN countries.[6]

1.2 Research Problem and Questions

A discussion of the topics will dynamically generates as some problems and questions explained in this paper, thus this paper will try to examine and expand answers towards these questions:

1. How is Indonesia preparedness to welcoming ASEAN Economic Community?
2. What is current challenges Indonesia face as developing countries to enabling ASEAN Economic Community Program into its domestic level?
3. How Indonesia cope up with the “Inequality Developments” challenges?

1.3 Scope and Limitation

This paper will examine the implication of Indonesia’s strategy to enabling ASEAN Economic Community’s program within its domestic policy amid the condition of Indonesia as developing country whereas the ability of the people has not eligible enough, and amid the several obstacles as like lacking in terms of empowerment of MSMEs, lacking of quality of the workers, etc. To discuss the certain issues as mentioned, this paper will use the ASEAN Economic Community Blueprint 2025 and the government of Indonesia Presidential Instruction (Inpres) No. 11/2011 on the implementation of the AEC blueprint in preparing ASEAN free trade as the basis ground for the discussion. Another thing to be added up to the discussion in this paper is that about Indonesia’s strategy to welcome AEC and also to see Indonesia’s challenges and opportunity in enabling AEC. From this pictures, it can be seen that mostly the discussion will talk about Indonesia’s policy as mechanisms to cope up with the development inequality with other ASEAN country members to run this AEC program.

DISCUSSION

2.1 Indonesia’s Challenges as Developing Country to enabling ASEAN Economic Community Program

Development gaps between and within members in income, human capital, institutions, and infrastructure and the absence of regional distributive mechanisms; disparities in good governance and the rule of law; disparities in population growth and population aging, that together with disparities in economic growth lead to large labor deficits and surpluses among countries that spurred cross-border illegal migration; slow decision making and even slower implementation of AEC commitments due to need for consensus building and slow progress in domestic reforms; weak ASEAN Secretariat with inadequate human and financial resources; are such basic weaknesses that ASEAN have since the beginning.[7]

Following that, in Indonesia, AEC indirectly causes increased employment, which affects the employment opportunities of migrant workers. With the presence of ASEAN labor migrants, AEC can spread to each ASEAN country. However, it is possible that the workforce in Indonesia itself can be a source of competition in getting employment opportunities within the country, in which in the worst case, if Indonesia citizens are not competitive enough, they will lose their opportunity itself. In this case, the government should create some qualifications for foreign workers. For the writer, foreign workers must have certain requirements in order to work in Indonesia, which ensure that the workforce in Indonesia remains administratively unrivaled by its employment opportunities. Examples of the requirements for foreign workers to be able to work in Indonesia are to reactivate the Indonesian Language Test held by Balai Bahasa Indonesia; this test was abolished by President Joko Widodo on August 21, 2015. This policy is intended to protect domestic workers or the local labor in Indonesia facing the AEC. However, this requirement is only addressed to the workers and not the investors. Foreign investors may fear that their limited movement to improve the economy in Indonesia may cause all foreign investors to leave, many workers eventually losing their livelihood. Thus, as the policy executor, the government should strengthen the workforce from both the inside and outside aspects so that the self-esteem of the workforce reflects the economics of the country is being developing.[8]

Other than employment things, the lacking of empowerment of Micro, Small, and Medium–sized Enterprises also become a crucial obstacle that Indonesia has. To help MSMEs with capital, the Financial Services Authority (OJK) actually can apply preferential treatment not only by giving subsidies but also through a more flexible approach to non-performing loans (NPL). Other than that, the government should also facilitate entrepreneurial activity entering the domestic market by providing vocational and training centers and by connecting entrepreneurial activities in one region with those in other areas for information exchange.[9]

However, the most significant of all the obstacles is that the human resources, particularly for entrepreneurs. Skills and creativity are selling points in business. As for professionals, they must enhance their skills, competence and professionalism. With high quality human resources in terms of skills and creativity, Indonesia can attract investors and Indonesians can spread their wings in other ASEAN countries. Since 2007, Bank Mandiri has prepared college students and youth through the Mandiri Young Entrepreneur Program (WMM). Bank Mandiri has also given public lectures on leadership and entrepreneurship to change mindsets so as to encourage people to engage in entrepreneurial activity. With all this in their hands, students and entrepreneurs should be ready to participate in the AEC.
Bank Mandiri, through Mandiri Institute, is now conducting research on national entrepreneurship in cooperation with the GEM and the UKM Center.[10]

The last obstacle is about the ‘market opportunity’. The AEC certainly provides a wider market for entrepreneurs, which they can penetrate by providing products in demand overseas. In regard to this, the government should be able to identify Indonesia’s unique products and ensure standardization. If the domestic market can be fully supplied by local players then they should not be worried about foreign products entering Indonesia.[11]

2.2 Indonesia’s Strategy to Welcome the ASEAN Economic Community

So far, five main measures have been taken by the government to prepare for the AEC, they are:

1. The ‘Aku Cinta Indonesia’ (I love Indonesia) Program as a National Branding Campaign for the consumption of domestic products such as garments, accessories, entertainment, tourism, etc.[12] The main purpose of this national branding is to build up the ‘positive image’ of domestic product, but not only that, the creation of this branding is also wished to awaken the ‘awareness’ of Indonesia’s citizens on how important it is to preserve and be proud of the national products. Regardless the purpose, the nation branding also brings the multiplier effects, especially for the domestic industry. This nation branding will enhance the passion of either MSMEs or even manufactures to maximize their productions, and by this, the MSMEs or manufactures will empower more workers to work for them and (which will open more job vacancy for the citizens). That’s why the nation branding is really crucial to awaken the spirit of industry in particular country.
2. The Strengthening of the Micro, Small and Medium Enterprises (MSMEs) segment. Entrepreneurial activity in the segment is buoyed by promoting ambition, production efficiency and effective management, supporting market absorption of local MSMEs products as well as creating conducive business conditions.[13] During President Joko Widodo’s leadership, the government realizes that we are a few steps behind Vietnam, Philippines, and Malaysia, in ensuring a comfortable business climate for foreign investments. This makes Indonesia relatively uncompetitive compared to the neighbor countries. That’s why the government continues to push the regional infrastructure development projects in order to enhance the regional economic potentials which remain open with economic hubs in the process of development in various islands and economic sectors such as manufacturing, tourism, maritime, etc.[14]
3. Capacity and Quality Improvements of Infrastructure like land, sea and air transportation, communication and information systems and energy supply.[15] In order to revitalize the infrastructure conditions in Indonesia, the Government of Indonesia (GOI) has initiated some policy initiatives and plans for infrastructure development, including the introduction of several sectoral reform initiatives, the holding of infrastructure summits in 2005 and 2006, the launching of infrastructure packages, and the introduction of regulatory and institutional reforms meant to attract public- private partnership (PPP) in infrastructure.[16]
4. The Improvement of Human Resources through Education. Productive human resources is the driving force of economic growth. To produce a productive workforce, it is deemed necessary to have high quality education that is relevant with the development needs. In an economy that is shifting towards a knowledge-based economy, the role of high level education is very important to create a superior and productive workforce. This superior and productive workforce is expected to have the ability to apply science and technology needed to improve the value added of sustainable economic activity. The high level education consists of academic education programs, vocational education programs, and professional education programs. The development of academic education programs is aimed at aligning the fields and study programs with the economic development potential in each economic corridor. Academic program must create a network which contributes to the value added chain for each commodity and sectors developed in each economic corridor. University research centers must be developed nationally as an important part of national innovation center. University research centers have to be developed based on the principle of integration, resource sharing, and utilize information technology optimally. Vocational education programs are encouraged to produce skilled graduates. Therefore, the development of vocational education programs should correspond with the potential in each economic corridor.[17]
5. Organizational and Administrative Reform as stipulated in the 2012-2025 national strategy to prevent and eradicate corruption. In realization of the efforts in CPE (Corruption Prevention and Eradication), Presiden Susilo Bambang Yudhoyono established Presidential Decree No 55 Year 2012 Annex National Strategy on Corruption Prevention and Eradication 2012-2014 and 2012-2025 by UNODC Indonesia.[18]

2.3 Indonesia’s Policy to Cope Up with Development Inequality between ASEAN country members

As an effort to welcome and cope up with any kind of obstacles that Indonesia face as one of the ASEAN member to run ASEAN Economic Community Program, either domestically or regionally, the government of Indonesia, at that moment, it was under the governance of President Susilo Bambang Yudhoyono, together with the Ministry For Economic Affairs, Ministry Of National Planning And Development/ National Development Planning Agency has created “The Masterplan for the Acceleration and Expansion of Economic Development of Indonesia (MP3EI).”[19]

Indonesia requires acceleration and expansion of economic development to support its transformation into a developed country by 2025. In doing so, millions of people will be lifted out of poverty, and given better access to quality education, employment, higher living standard and medical care. A stronger middle class will also mean that the country and its citizens will have higher purchasing power and the increased ability to compete in the global arena.[20]

The development of MP3EI can be accomplished if the government and business sector embrace a new way of thinking in doing business. In writer’s opinion. Everyone must take a collective approach toward improving and utilizing the country’s resources, strategic position, and manpower, in order to propel its citizens forward. The stakeholders, the central government, local governments, state owned enterprises, and private sector must work together productively. In this effort, the private sector will be given a major and important role in economic development, particularly in investments to increase job opportunities. The government will not only be a regulator, it will also be a facilitator, and catalyst to support this growth. With regard to regulations, the government will amend or remove (debottlenecking) regulations that inhibit the implementation of investments. As a facilitator and catalyst, the government will provide incentives, both fiscal and non-fiscal.[21]

Implementation of MP3EI will include 8 main programs which consist of 22 (twenty two) main economic activities. The implementation strategy of MP3EI will integrate 3 main elements:

1. Developing the regional economic potential in 6 (six) Indonesia Economic Corridors: Sumatra Economic Corridor, Java Economic Corridor, Kalimantan Economic Corridor, Sulawesi Economic Corridor, Bali – Nusa Tenggara Economic Corridor, and Papua – Kepulauan Maluku Economic Corridor;
2. Strengthening national connectivity locally and internationally;
3. Strengthening human resource capacity and national science & technology to support the development of main programs in every economic corridor.

Implementation of MP3EI is expected to fully support and complement existing development planning documents produced by the government, including Long Term National Development Plan (RPJPN) and Medium Term National Development Plan (RPJMN). The implementation of MP3EI will be coordinated by a Committee chaired by the President of Republic of Indonesia, and the committee will be responsible for the coordination, monitoring and evaluation of specific strategies and actions identified in the masterplan.

In the Masterplan for the Acceleration and Expansion of Economic Development of Indonesia (MP3EI), are exercised the 2025’s 3 main goals to achieve Indonesia’s Masterplan visions, they are:

1. Increase value adding and expanding value chain for industrial production processes, and increase the efficiency of the distribution network. In addition increase the capability of the industry to access and utilize natural resources and human resources. These increases can be attained by the creation of economic activities within regions as well as among regional centers of economic growth.
2. Encourage efficiency in production and improve marketing efforts to further integrate domestic markets in order to push for competitiveness and strengthen the national economy.
3. To push for the strengthening of the national innovation system in the areas of production, process, and marketing with a focus on the overall strengthening of sustainable global competitiveness towards an innovation-driven economy.

The Masterplan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) is developed based on basic principles and prerequisites for successful implementation. The successful execution of MP3EI is determined by the following basic principles. These basic principles will require the shift in perspective and behavior of all of the nation’s components as follows:

• Change must affect positively on all stakeholders of the nation;
• Change in mindset starts from the Government and its bureaucracy;
• Change requires the spirit of hard work and the strong desire to develop collaborations within a healthy competitive environment;
• Productivity, innovation and creativity, driven by science and technology;
• Enhancing entrepreneurship;
• Private sector has an important role in economic development;
• A Campaign to implement sustainable development principles;
• Campaign for change in mindset to improve prosperity has to be carried out extensively by all stakeholders of the nation.

Business enterprises (private sector companies, state and regional owned companies) have an important role in economic development, particularly in generating investments and the creation of employment opportunities. The government, on the other hand, is responsible for creating conducive macro-economic conditions for the acceleration and expansion of investments. Therefore, national development policies must be supported by the full commitments of both the government and business enterprises, in the form of:

• Encouraging businesses to support and increase investment and to boost economic growth and the creation of employment opportunities;
• Business enterprises must undertake innovative measures to develop technology and production methods in order to triumph in today`s global competitiveness;
• The government will provide equal and fair opportunities for all businesses;
• The government is supported by a bureaucracy that serves the needs of businesses;
• The government is creating conducive macro-economic, political, legal and social environment to support business activities;
• The government provides social basic protection and services.

Budget policy must begin with the structuring of a credible and sustainable State Budget (APBN), with provisions to accelerate economic growth in order to create equitable and sustainable development. Essential elements include:

• Prioritizing the allocation of the State Budget for the development of infrastructure, improve basic public services and provide social security for the poor;
• Allocating government loans to finance investment activities instead of to finance routine expenditure. The rate of return on government investment should be higher than the cost of debt;
• Infrastructure will be developed in partnership with the private sector;
• Subsidy will be used as an instrument of social protection by switching the subsidy objective from subsidy for goods into direct subsidy for the poor. To facilitate the implementation of direct subsidy, the proposed national “Single Identity Number“ must be implemented immediately;
• The revenues and royalties from non-renewable natural resources extraction should not be treated and expanded as current revenue but rather some portion to be kept for the benefit of future generations;
• The return from processing renewable natural resources will be invested to enhance the quality of human capital and technology;
• Expanding access to education and basic health service facilities;
• Improve quality of public services for the society and businesses.

Taxes and import duties are one of the instruments of economic policy to support the acceleration and expansion of national economic development. Therefore reform is considered necessary, and can be carried out using the following tax approach:

• Tax rates and import duties should be adjusted due to the economic cycle;
• Increase the number of actual Tax Payers;
• Coordination amongst authorized institutions must be carried out to ensure that all citizens who gain in come above nontaxable income level pays tax according to applicable law;
• Taxes levied on the tax object in Indonesia and not levied on the tax subject in Indonesia (change in concept from National into Domestic or from the concept of GNP to GDP).
• Taxation aimed at the final consumer, replacing the system of value added tax (VAT);
• All taxation schemes are evaluated so that there is no ambiguity in interpretation leading to clarity on what is taxable and not taxable;
• In order to improve competitiveness and efforts to reduce tax evasion, efforts should be made to benchmark the tax rate with neighboring countries;
• Avoidance of double taxation;
• To avoid double counting all tax exemption or tax relief will no longer be regarded as a tax levied to the state.

One of the key components of financial policy reform by the government is an enhanced ”State Asset Reporting System” which recognizes the monetary value of this asset (including natural resources, land and buildings, etc.) and to empower the government to effectively use this asset for budget and planning.

CONCLUSION

AEC was established to improve economic stability in Southeast Asia, to address economic matters among ASEAN member countries and to improve ASEAN competitiveness and enable members to compete with China and India in attracting foreign investment. The AEC is expected to create an integrated market for capital, goods and service as well as labor. The impact of this will be a free flow of goods and services, investment, credit and skilled workers among ASEAN countries. Another positive impact is that Indonesian investors may expand their businesses without facing restrictions in neighboring countries. Conversely, Indonesia can draw investment from ASEAN investors. To welcome the AEC program, the government of Indonesia has created Presidential Instruction (Inpres) No. 11/2011 on the implementation of the AEC blueprint in preparing ASEAN free trade. But, to achieve the objectives and to gain all those positive impacts from the AEC program, is not as easy as how it is planned. ASEAN country members as a whole have their own obstacles, each of them. In this case, Indonesia as one of ASEAN members, also has its own obstacles to run AEC programs in the domestic level. Some obstacles that Indonesia needs to face in welcoming AEC’s programs are: employment competition between local workers and migrant workers, lacking of empowerment of Micro, Small, and Medium-sized Enterprises (MSMEs), the problem with the quality of human resources, and the last one is about ‘market opportunity’. To overcome those obstacles, the government of Indonesia do certain things and create some strategic policies. Some of plans that have been made by the governments as like: (1) The ‘Aku Cinta Indonesia’ (I love Indonesia) Program as a National Branding Campaign for the consumption of domestic products such as garments, accessories, entertainment, tourism, etc, (2) The Strengthening of the Micro, Small and Medium Enterprises (MSMEs) segment, (3) Capacity and Quality Improvements of Infrastructure like land, sea and air transportation, communication and information systems and energy supply, (4) The Improvement of Human Resources through Education, and (5) Organizational and Administrative Reform as stipulated in the 2012-2025 national strategy to prevent and eradicate corruption. There is also a strategic policy that government established to cope up with some weaknesses that Indonesia has to face AEC program, that strategic policy is “The Masterplan for the Acceleration and Expansion of Economic Development of Indonesia (MP3EI).” This Masterplan basically rules everything, starting from the jobdesk of each stakeholders in the country, funding, infrastructures, development, even the society itself. Basically all the sectors are discussed in the Masterplan. Overall, the government already did their best to arrange national planning for the betterment of the country, in all sectors, but most importantly is in the economic sector itself, as like the main objective of AEC program since the beginning.

Recommendation

As a part of ASEAN member, we should understand that several challenges faced by Indonesia is seemingly natural according to Indonesia’s status as developing country itself. With this condition, some challenges such as incapability of human resources, competition of employment, the lacking of empowerment of Micro, Small, and Medium-sized Enterprises (MSMEs), and the ‘market opportunity’ obstacle, is all understandable. To manage those challenges into an opportunity, Indonesian government should cooperate and work together with the whole citizens, MSMEs, and other particular actors or institutions to run the ‘Masterplan for the Acceleration and Expansion of Economic Development of Indonesia’ that has been established by the government. The awareness by any related stakeholders and proactive society would be very influential yet significant in determining the future fate of Indonesia’s economic development after all.

REFERENCES

ASEAN. 2017. “Global Megatrends: Implications for the ASEAN Economic Community”

Accessed from https://asean.org/storage/2017/09/Global-Megatrends-Implications-for-the-AEC_FULL.pdf in April 20 2020.

Carolina, E. 2016. “Analysis: ASEAN Economic Community for Entrepreneurs.” The Jakarta

Post. Accessed from https://www.thejakartapost.com/news/2016/01/13/analysis-asean-economic-community-entrepreneurs.html in April 20 2020.

Siow Yue Chia. 2013. “The ASEAN Economic Community: Progress, Challenges, and

Prospects.” Asian Development Bank Institute. Accessed from https://www.adb.org/sites/default/files/publication/156295/adbi-wp440.pdf in April 20 2020.

S, Thamrin. 2019. “Job Opportunities and Challenges in the Indonesian Market based on the

ASEAN Economic Community Era.” Revista Espacios. Accessed from http://www.revistaespacios.com/a19v40n07/a19v40n07p14.pdf in April 20 2020

HSBC. 2016. “Indonesia’s Economic Growth in ASEAN: Hopes and Challenges” Accessed

from https://www.business.hsbc.co.id/en-gb/article/indonesias-economic-growth-in-asean in April 20 2020.

Aswicahyono, H dan Friawan, Deni. 2008. “Chapter 5: Infrastructure Development in

Indonesia” Accessed from https://www.eria.org/uploads/media/Research-Project-Report/RPR_FY2007_2_Chapter_5.pdf in April 20 2020.

ASEAN Briefing (Indonesia). 2011. “ASEAN Briefing: Master Plan Acceleration and

Expansion of Indonesia Economic Development 2011-2025.” Accessed from file:///C:/Users/Nurul%20Husna/Downloads/ASEAN_Indonesia_Master%20Plan%20Acceleration%20and%20Expansion%20of%20Indonesia%20Economic%20Development%202011-2025.pdf in April 20 2020

UNODC Indonesia. 2012. “National Strategy of Corruption Prevention & Eradication”.

Accessed from https://www.unodc.org/documents/indonesia/publication/2012/Attachment_to_Perpres_55-2012_National_Strategy_Corruption_Prevention_and_Eradication_translation_by_UNODC.pdf in April 20 2020

[1] ASEAN. 2017. “Global Megatrends: Implications for the ASEAN Economic Community” Accessed from https://asean.org/storage/2017/09/Global-Megatrends-Implications-for-the-AEC_FULL.pdf in April 20 2020.

[2] Ibid.

[3] Ibid.

[4] Carolina, E. 2016. “Analysis: ASEAN Economic Community for Entrepreneurs.” The Jakarta Post. Accessed from https://www.thejakartapost.com/news/2016/01/13/analysis-asean-economic-community-entrepreneurs.html in April 20 2020.

[5] Ibid.

[6] Ibid.

[7] Siow Yue Chia. 2013. “The ASEAN Economic Community: Progress, Challenges, and Prospects.” Asian Development Bank Institute. Accessed from https://www.adb.org/sites/default/files/publication/156295/adbi-wp440.pdf in April 20 2020.

[8] S, Thamrin. 2019. “Job Opportunities and Challenges in the Indonesian Market based on the ASEAN Economic Community Era.” Revista Espacios. Accessed from http://www.revistaespacios.com/a19v40n07/a19v40n07p14.pdf in April 20 2020

[9] Carolina, E. 2016. “Analysis: ASEAN Economic Community for Entrepreneurs.” The Jakarta Post. Accessed from https://www.thejakartapost.com/news/2016/01/13/analysis-asean-economic-community-entrepreneurs.html in April 20 2020

[10] Ibid.

[11]Carolina, E. 2016. “Analysis: ASEAN Economic Community for Entrepreneurs.” The Jakarta Post. Accessed from https://www.thejakartapost.com/news/2016/01/13/analysis-asean-economic-community-entrepreneurs.html in April 20 2020.

[12] Ibid.

[13] Ibid.

[14] HSBC. 2016. “Indonesia’s Economic Growth in ASEAN: Hopes and Challenges” Accessed from https://www.business.hsbc.co.id/en-gb/article/indonesias-economic-growth-in-asean in April 20 2020.

[15] Carolina, E. 2016. “Analysis: ASEAN Economic Community for Entrepreneurs.” The Jakarta Post. Accessed from https://www.thejakartapost.com/news/2016/01/13/analysis-asean-economic-community-entrepreneurs.html in April 20 2020.

[16] Aswicahyono, H dan Friawan, Deni. 2008. “Chapter 5: Infrastructure Development in Indonesia” Accessed from https://www.eria.org/uploads/media/Research-Project-Report/RPR_FY2007_2_Chapter_5.pdf in April 20 2020.

[17] ASEAN Briefing (Indonesia). 2011. “ASEAN Briefing: Master Plan Acceleration and Expansion of Indonesia Economic Development 2011-2025.” Accessed from file:///C:/Users/Nurul%20Husna/Downloads/ASEAN_Indonesia_Master%20Plan%20Acceleration%20and%20Expansion%20of%20Indonesia%20Economic%20Development%202011-2025.pdf in April 20 2020

[18] UNODC Indonesia. 2012. “National Strategy of Corruption Prevention & Eradication”. Accessed from https://www.unodc.org/documents/indonesia/publication/2012/Attachment_to_Perpres_55-2012_National_Strategy_Corruption_Prevention_and_Eradication_translation_by_UNODC.pdf in April 20 2020

[19] ASEAN Briefing (Indonesia). 2011. “ASEAN Briefing: Master Plan Acceleration and Expansion of Indonesia Economic Development 2011-2025.” Accessed from file:///C:/Users/Nurul%20Husna/Downloads/ASEAN_Indonesia_Master%20Plan%20Acceleration%20and%20Expansion%20of%20Indonesia%20Economic%20Development%202011-2025.pdf in April 20 2020

[20] Ibid.

[21] Ibid.