The Analysis Of AEC-BLUEPRINT And It's Effect On Indonesia's Economy

Nowadays,every region of the world has entered the era of economic integration and the openness of each countries has become highly increasing,as well as in the ASEAN region.At present,ASEAN too has entered a period of economic integration.In order to promote more comprehensive an integrated economic development in the region,ASEAN had built an action plan called the ASEAN Economic Community Blueprint.The plan of action in the AEC-Blueprint has 4 main pillars,namely towards a single market and production base,towards the establishment of a highly competitive region,towards a fair economic development region and lastly towards a global economic integration.The plan of action is also to face the ASEAN Economic Community era which begin in the end of 2015 or could say in 2016.The AEC-Blueprint plan of action is not likely the same as the one that contained in AFT A,which only facilitates the flow of trade in goods and services.But it also facilitates investment,capital and even the skilled labor mobility.In addition,it also contained such as economic policy,consumer protection,infrastructure development,SME development,the ASEAN Integration Initiative,and the coherence of Extra-ASEAN economic relations,etc.Indonesia as a founding and a member of ASEAN need to participate in the plan of action of the AEC-Blueprint.The commitment to implement the action plan is one of the strategic measures that could be taken by the Indonesian Government to take advantage of these economic globalization.It could have an impact on the growth of trade in goods,services and investment in Indonesia,which would eventually increase Indonesia's Gross Domestic Product.In addition,it could also create a jobs opportunity,developing human resources and entering teh international market,it will ultimately affect Indonesia's economy development in future.This paper is divided into 6 parts.First part is an Introduction,introducing the research background,domestic and international literature review,research ideas and methods as well as the framework and main content of the thesis.Second part is an overview of ASEAN Economic Integration,introducing teh theory of economic globalization and liberalization,regional economic integration and the characteristics of its form,and the process of regional integration in ASEAN.The Third part is the overview of the AEC-Blueprint,introducing its content and the framework of the action plan.The Fourth part is about Indonesian reaction towards the aec blueprint,pointed out some indonesian perspective about aec and what Indonesian policies and measures cope with the AEC-Blueprint.The Fifth part is the effect of the AEC-Blueprint towards Indonesia's economy development,introducing the analysis of the growth of Indonesia's GDP and analysis trade in goods,services and investment development as the impact of Indonesia economy development,lastly analysis the tools that help to promote economic growth namely infrastructure and human resources.And the last part is the conclusion and suggestions part,puts forward some suggestions on Indonesia's participation in AEC.