Will ASEANs Dream Be The Dream of Us (Graph)

Will the Dream of ASEAN be
Indonesians Dream?
(or, Will It be Indonesians Nightmare?)
Akhmad Akbar Susamto
-------- The Evolution of ASEAN Community --------

The roots of the ASEAN grouping
can be traced back at least to the
Southeast Asia Treaty
Organization (SEATO).

The SEATO was signed in 1949,
with a purpose to fight
communism in Southeast Asia.

Members of the SEATO: United
States, United Kingdom, France,
Pakistan, Philippines and
Thailand.


The motivation for increasing
economic co-operation in the
1990s was the threat of
competition from China.


The AEC helps to establish a level
playing field across the region, creating
a culture of fair business competition
for among the ASEAN member states
and ultimately enhancing the regions
economic performance.


Recalling that the motivation
behind ASEAN integration is
the threat from China, the
future of ASEAN community
will depend on how individual
member states China is able to
build partnership with China.
The need for ASEAN
cooperation would become less
attractive once .
However, he said the spirit to establish
a single economy is slowly diminishing
as many Asean countries start to revive
their protectionist instincts.


Besides, as each member
experiences good growth, the
will and desire to unite within
the region will, paradoxically,
dwindle.



The need for ASEAN
cooperation would become less
attractive once . Besides, as each
member experiences good
growth, the will and desire to
unite within the region will,
paradoxically, dwindle.



t will be a larger ASEAN market for
all the Asean countries

It requires the hard decision of which
country should lead in which
industry.

Asean is not big enough to have
several different car industries. It has
got to focus on one or two countries. If
each Asean country wants to have a
car industry, then we will be killing
ourselves in terms of economic
competition

---- Future ASEAN: Opportunities for Indonesia ----

The evolution of ASEAN towards a
borderless community offers new
opportunities for Indonesia.

It expands the target market of
Indonesian goods and services.

---- Future ASEAN: Opportunities for Indonesia ----

From consumers perspective, the
creation of a single ASEAN market
is also beneficial as it will create
incentives for businesses to further
develop creative and innovative
products and services as they
willhave to compete with a number
of new players in the market..

------ Future ASEAN: Challenges for Indonesia ------

The evolution of ASEAN towards a
borderless community also brings
greater challenges for Indonesia
that need to be tackled.
. exposing local business to
unfettered competition which they
fear they are ill-prepared to deal
with
Possible marginalization of unskilled
workers
------ Future ASEAN: Challenges for Indonesia ------

Risk of over-exuberant inflows of
capital

----------- Is Indonesia Ready for the Future? -----------

The need for Indonesian government to
assist in preparing their local industries,
particularly small and medium
enterprises (SMEs), to tap into the
benefits of the AEC as well as that of a
single production base
.
-------- Some Closing Remarks --------
The impact of AEC will only become
apparent after 2015 and depends on
factors that are not always easy to
foresee.

It is true that we need to have a long
vision.

It is also true that AEC should be seen
as the end of the beginning rather
than the ultimate integration itself.

But, there is no need to rush!

Lets have a short break, take a very
deep breath and see how the AEC
works.

Rank Country Value
1 Uni ted States 0.824
2 Japan 0.694
3 Norway 0.643
4 Fi nl and 0.621
5 Sweden 0.619
6 Germany 0.616
7 Korea, Republ i c of 0.576
8 Swi tzerl and 0.539
9 Denmark 0.516
10 Si ngapore 0.510
11 Austral i a 0.506
12 Canada 0.461
13 Austri a 0.443
14 New Zeal and 0.408
15 Netherl and 0.405
16 France 0.373
17 Uni ted Ki ngdom 0.364
18 Hong Kong 0.338
19 Bel gi um 0.331
20 Czech Republ i c 0.288
21 Spai n 0.204
22 Ital y 0.134
23 Pol and 0.095
24 Portugal -0.008
25 Chi l e -0.037
60.20
60.42
61.75
66.49
68.27
71.48
75.38
77.34
77.64
78.83
79.26
80.74
80.86
82.48
83.31
85.38
85.55
85.85
86.90
88.59
90.44
90.60
90.67
91.70
94
100 (1) UNITED STATES
(2) JAPAN
(3) NORWAY
(4) FINLAND
(5) SWEDEN
(6) GERMANY
(7) KOREA, REPUBLIC OF
(8) SWITZERLAND
(9) DENMARK
(10) SINGAPORE
(11) AUSTRALIA
(12) CANADA
(13) AUSTRIA
(14) NEW ZEALAND
(15) NETHERLAND
(16) FRANCE
(17) UNITED KINGDOM
(18) HONG KONG
(19) BELGIUM
(20) CZECH REPUBLIC
(21) SPAIN
(22) ITALY
(23) POLAND
(24) PORTUGAL
(25) CHILE
CATCH UP INDEX 2014 (50 COUNTRIES)
26 Saudi Arabi a -0.041
27 Russi an Federati on -0.107
28 Romani a -0.129
29 Mal aysi a -0.136
30 Kazakhstan -0.149
31 Ukrai ne -0.209
32 Thai l and -0.210
33 Turkey -0.212
34 Chi na -0.223
35 Argenti na -0.311
36 Egypt -0.338
37 Brazi l -0.372
38 Iran -0.412
39 Mexi co -0.436
40 Al geri a -0.472
41 Vi et Nam -0.475
42 South Afri ca -0.487
43 Venezuel a -0.510
44 Indonesi a -0.527
45 Phi l i ppi nes -0.548
46 Peru -0.568
47 Col ombi a -0.610
48 Indi a -0.656
49 Ni geri a -1.049
50 Kenya -1.350
0
13.85
31.93
34.07
36.00
36.91
37.89
38.65
39.73
40.24
40.40
42.07
43.17
45.01
46.56
47.79
51.86
52.34
52.43
52.47
55.24
55.85
56.19
57.19
60.20
60.42
0 20 40 60 80 100
(26) SAUDI ARABIA
(27) RUSSIANFEDERATION
(28) ROMANIA
(29) MALAYSIA
(30) KAZAKHSTAN
(31) UKRAINE
(32) THAILAND
(33) TURKEY
(34) CHINA
(35) ARGENTINA
(36) EGYPT
(37) BRAZIL
(38) IRAN
(39) MEXICO
(40) ALGERIA
(41) VIET NAM
(42) SOUTH AFRICA
(43) VENEZUELA
(44) INDONESIA
(45) PHILIPPINES
(46) PERU
(47) COLOMBIA
(48) INDIA
(49) NIGERIA
(50) KENYA
Rank Country Value
0
10
20
30
40
50
60
70
80
90
100
China (42) India (47) Indonesia
(41)
Japan (1) Korea,
Republic of
(14)
Malaysia
(36)
Philippines
(44)
Singapore
(20)
Thailand
(33)
Viet Nam
(37)
S
c
o
r
e

Country/Rank
1. Social Welfare
2. Macroeconomics
0
10
20
30
40
50
60
70
80
90
100
(36)
Japan (4) Korea,
Republic of
(16)
Malaysia
(20)
Philippines
(29)
Singapore
(9)
Thailand
(35)
Viet Nam
(38)
S
c
o
r
e

Country/Rank
3. Infrastructure
0
10
20
30
40
50
60
70
80
90
100
(47)
Japan (22) Korea,
Republic of
(11)
Malaysia
(29)
Philippines
(46)
Singapore
(2)
Thailand
(43)
Viet Nam
(42)
S
c
o
r
e

Country/ Rank
4. Technological Capacity
0
10
20
30
40
50
60
70
80
90
100
(45)
Japan (3) Korea,
Republic of
(2)
Malaysia
(34)
Philippines
(50)
Singapore
(12)
Thailand
(39)
Viet Nam
(48)
S
c
o
r
e

Country/ Rank
5.Innovation Capacity
0
10
20
30
40
50
60
70
80
90
100
(46)
Japan (10) Korea,
Republic of
(2)
Malaysia
(25)
Philippines
(48)
Singapore
(7)
Thailand
(11)
Viet Nam
(49)
S
c
o
r
e

Country/ Rank
6. Institutional Capability
0
10
20
30
40
50
60
70
80
90
100
(26)
Japan (31) Korea,
Republic of
(34)
Malaysia
(36)
Philippines
(37)
Singapore
(40)
Thailand
(42)
Viet Nam
(15)
S
c
o
r
e

Country/ Rank
7. Business Sector Performance
0
10
20
30
40
50
60
70
80
90
100
(29)
Japan (3) Korea,
Republic of
(7)
Malaysia
(25)
Philippines
(39)
Singapore
(6)
Thailand
(12)
Viet Nam
(33)
S
c
o
r
e

Country/ Rank
8. Independency
0
10
20
30
40
50
60
70
80
90
100
(18)
Japan (30) Korea,
Republic of
(15)
Malaysia
(38)
Philippines
(24)
Singapore
(44)
Thailand
(25)
Viet Nam
(49)
S
c
o
r
e

Country/ Rank
9. Sustainability
0
10
20
30
40
50
60
70
80
90
100
(43)
Japan (21) Korea,
Republic of
(35)
Malaysia
(44)
Philippines
(16)
Singapore
(19)
Thailand
(37)
Viet Nam
(45)
S
c
o
r
e

Country/ Rank

Will ASEANs Dream Be The Dream of Us (Graph)

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