Вы находитесь на странице: 1из 10

The Challenges of Indonesia Foreign Policy Towards Asean Economic

Community in SBY Presidency

By:

Atiqa Rana Fergus Putri

STUDENT ID:

20180510418

INTERNATIONAL PROGRAM OF INTERNATIONAL RELATIONS

FACULTY OF SOCIAL AND POLITICAL SCIENCES

UNIVERSITAS MUHAMMADIYAH YOGYAKARTA

2019
The Challenges of Indonesia Foreign Policy Towards Asean Economic
Community in SBY Presidency

Abstract

SBY was the president who won the first and second general elections, namely the period
of 2004-2009 and 2009-2014. In running his government, he implemented his foreign
policy program. One such program forms the ASEAN community, the ASEAN Economic
Community (AEC) which will be implemented in 2015. Where this program is a stepping
stone in the regional economic integration agenda in ASEAN. This program was also
created because it saw Indonesia's opportunities for it. The purpose of this paper is to find
out and analyze the opportunities, challenges and efforts of Indonesia's foreign policy
towards the Asean Economic Community during SBY's administration.

Keywords: Asean Economic Community (AEC), Foreign Policy, Economy

A. INTRODUCTION

Southeast Asia is the most dynamic region compared to another Asia in the world
Southeast Asia is the most dynamic region compared to other Asia in the world. The
number of differences between one another and in terms of different ideologies, politics,
economics, and defense. Many conflicts are well managed by Southeast Asia, as a region
that was once fragmented due to the cold war between the two blocs. The establishment of
ASEAN in 1967 proves that the Southeast Asian regions are very good at managing
conflicts. However, at that time several regions or countries in Southeast Asia chose to join
the countries in the two blocks by entering into cooperation and agreements (Widiatmaja,
2019). It aims to achieve the interests of each country. One of these interests can be
achieved by carrying out the foreign policy of each country. Foreign policy is a policy
carried out by a country in its dealings with other countries whose aim is to achieve
national goals. Foreign policy can be an instrument used by each country to achieve
national interests carried out outside the country's borders. In addition, foreign policy is
also carried out as a national development plan.
Foreign policy is a reflection of domestic conditions and at the same time influenced
by dynamic changes of the regional and international environment. Indonesia itself uses an
impartial foreign policy between the two blocs, the "free-active" policy in achieving its
interests in other countries. The formulation of this idea was first conceived by the first
vice president, Muhammad Hatta. "Free" means that Indonesia does not impartiality with
anyone and can determine its own way without the intervention of the western countries.
While being "active" means that Indonesia has taken part in the international sphere to
maintain world peace (Nasution, 2016).

SBY as Indonesia's sixth president and first president directly elected, of course in
running the government also implements foreign policy. It can be said that during SBY's
administration, Indonesia's foreign policy was stable. This can be proven from one of the
successes, namely the improved economy in Indonesia (Maksum, 2015). One of the
foreign policy programs in the SBY era was Indonesia's participation in ASEAN. In
carrying out his foreign policy, SBY made ASEAN the main focus because of the role of
the Indonesian Ministry of Foreign Affairs which is always active in every ASEAN forum.
This was then realized through Indonesia's role in realizing the ASEAN Community in
2015 which had been designed since Bali Concord II in 2003. The realization of the
formation of this community invited various opinions from the Scholars. However, in an
effort to increase regional resilience in Southeast Asia, ASEAN is still a guideline for
Indonesia to carry out its diplomacy. For this reason, the ASEAN Community remains a
reality. In addition, by looking at economic development, making ASEAN a foreign policy
is the right choice because ASEAN is one of the regions seen as quite dynamic in moving
the global economy. This ASEAN Community was formed with the aim of having a
positive impact on fostering stability in the adjacent region and also in the future, this
community can help to create social welfare and stability in Southeast Asia (Lestari, 2015).

The ASEAN Community itself consists of 3 pillars namely; 1) ASEAN Economic


Community (AEC), 2) ASEAN Political-Security Community, and 3) ASEAN Socio-
Culture Community. In this paper, what I will discuss further is how Indonesia's foreign
policy in running the ASEAN Economic Community (AEC).
B. RESEARCH QUESTIONS

1. How are the challenges of Indonesia foreign policy towards Asean Economic
Community in SBY presidency?

C. DISCUSSION

The ASEAN Economic Community is a community formed with the main


objective of forming a single market in the Southeast Asian region. In addition, this
community was formed to improve economic quality such as reducing poverty,
creating free trade in services and exchanging professional workers. The AEC was
also formed as a basis for trade, technology, human resources and services between
ASEAN countries. Asean Economic Community also has 4 important pillars
including; economic equality, the establishment of a single ASEAN market,
economic development in ASEAN, and efforts to improve global competitiveness
(Sapriansyah, 2016).

With the existence of Asean Economic Community, it will make a free market, free
of goods, free of services, investment, free of capital in the ASEAN region which
will later be created in a region with equitable economic development and a fully
integrated region with the global economy. During SBY's reign, SBY had to face
economic problems in Indonesia. For this reason, realizing the ASEAN community,
especially in the AEC, can help the Indonesian economy and advance the economy
in Indonesia because of the many opportunities that can be obtained in this regard.
The AEC blueprint in 2015 can be used by Indonesian national businesses to serve as
a direction to expand coverage and penetration of the ASEAN market which will be
a signal and confirm the greatness of the Indonesian economy in ASEAN (Saputra,
2012).

C.1 Indonesian opportunities for Asean Economy Community (AEC)

Indonesia in running the AEC program has several opportunities. Indonesia has the
largest economic level in the ASEAN region with the ability of gross domestic
product (GDP) of 854 billion US dollars or 35% of the total ASEAN GDP in 2011 of
3.3 billion US dollars. In addition, Indonesia is the country with the most population
in the ASEAN region. This can help Indonesia as a potential market in the ASEAN
region and has the potential to embody the AEC. AEC can also provide opportunities
for Indonesian businesses to enter a broader market such as ASEAN. With the
establishment of the AEC, through trade cooperation and exchange of goods,
Indonesia is able to strengthen its cooperation and unity in the economic field.

Indonesia is also a country in ASEAN which is a destination country for foreign


investors with a 43% chance, which is three times higher compared to other ASEAN
countries which only have a 15% chance. ASEAN has treated the ASEAN
Investment Area (AIA) in 1998 which was developed through the ASEAN
Comprehensive Investment Agreement (ACIA) in 2009. ACIA has several pillars of
discussion carried out in the AEC including; there is protection in terms of
investment, economic liberalization in ASEAN, economic promotion in ASEAN,
and also facilities and cooperation between countries in ASEAN. These things have
positive benefits for Indonesia because Indonesia will find it easier to make
proposals and approve investments from and for investors (Nur, p. 2015). Another
benefit is creating new jobs.

In terms of export, Indonesia also has the opportunity to increase its exports to
intra-ASEAN countries. In 2010, the opportunity is currently only 18-19%, while
outside ASEAN is around 80-82% of total exports. In 2011, Indonesia was able to
increase its exports to 32.2 billion US dollars. This value has increased significantly
compared to 2010 which only reached 19,147 US dollars. AEC makes it easy for
Indonesia to build a food supply chain. With this AEC program, non-ASEAN
countries can also carry out export-import activities with Indonesia. With the AEC, it
can provide opportunities or new drivers for Indonesia's export growth and this can
be used as an opportunity for Indonesia to reduce trade barriers so that Indonesia can
increase its gross domestic product (GDP). With this increase, Indonesia will be able
to compete with superior products in agriculture, plantations and fisheries.

C.2 Challenges faced by Indonesia towards Asean Economy Community

In carrying out foreign policy and striving to achieve these opportunities, of course,
Indonesia must also face the challenges that exist to realize the AEC with its single
market principle. These opportunities have their risks so that Indonesia must be
prepared for it. One of the biggest challenges that must be faced by Indonesia in the
AEC is that Indonesia still has a high level of social inequality among other member
countries. One example that can be taken Namely in 2009, there is a fairly high
difference in economic output reaching 258 billion US dollars between the country's
GDP of Laos which is only 1% of Indonesia's GDP. As a result of these conditions,
in 2011, when Indonesia became the chair of ASEAN, Indonesia proposed the
establishment of the ASEAN Framework on Equitable Economic Development
(EED). This aims to reaffirm the commitments made by ASEAN to achieve
economic equality among ASEAN members by seeking to improve the quality of
human resources, improve social welfare, open greater opportunities for ASEAN
members to participate in the integration process, and reduce inequalities
development.

Another challenge comes from the trade and services sector, where when Indonesia
conducts free trade flows in the field of goods or services, it will create competition
risk where Indonesia will not only be an exporting country, but Indonesia will also be
a destination country for exporters from foreign countries. With so many exporters
coming to Indonesia by selling goods of better quality, this will threaten the local
industry. So that later it will cause a trade balance deficit. In addition, from the
infrastructure sector, Indonesia is still far behind other ASEAN countries. So that
ahead of the implementation of the 2015 AEC, Indonesia needs to prepare several
infrastructures on land, air, sea, energy security, and information technology

Another challenge that must be faced by Indonesia is in terms of human resources


that still require quality improvement. This occurs due to opportunities to obtain
education in Indonesia. Still lacking so that the inequality that will result in awareness
to take education to a higher or lower level. Wage standards that apply in Indonesia
are also still low so that foreign workers are still reluctant to work in Indonesia. In the
investment sector, Indonesia has a very high risk because of the exploitation risk.
After the establishment of the ASEAN Comprehensive Investment Agreement
(ACIA), many foreign investors will be interested and invade Indonesia. For this
reason, Indonesia is expected to have strict rules and regulations. MSMEs or micro,
small and medium enterprises (UMKM) are also one of the challenges that must be
faced because MSMEs do not get enough attention from the government. However,
MSMEs are also a target for the AEC in creating economic stability and development
in the ASEAN region. One of the challenges that must be faced by Indonesian
MSMEs is the quality of goods produced. This is due to the high production costs so
that it cannot create efficient products and also the lack of knowledge of business
actors to produce quality products and services (Cermati, 2017).

C.3 Indonesia's policies and efforts towards Asean Economy Community

In facing various challenges and also achieving opportunities to the Asean


Economy Community (AEC), Indonesia must make an effort to prepare itself. One of
the efforts made by Indonesia is through a regulation or policy. One form of foreign
policy is to participate in international cooperation. With international cooperation, it
will facilitate Indonesia in implementing national development. The implementation
of the AEC was highlighted during SBY's administration. Although the
implementation of the AEC was still carried out in 2015, its preparation was very
important in determining Indonesia's position in the future. The initial policy
undertaken by Indonesia in achieving the AEC was to participate in agreeing to
accelerate the AEC which initially in 2020 became 2015. Indonesia also signed the
AEC Blueprint which became a guideline for ASEAN countries in achieving the
Asean Economy Community (AEC). AEC Blueprint is an agreement aimed at
liberalizing trade in more valuable goods.

President SBY was active in regional affairs at the time, but he also participated in
preparing Indonesian domestic affairs. This can be seen from what was done by SBY,
namely by issuing several INPRES (Presidential Instruction) in 2014. SBY's
government established a national committee, namely the National Committee for
Preparation of the Asean Economic Community Implementation in preparation for
dealing with the Asean Economy Community. President Susilo Bambang Yudhoyono
also issued INPRES which aims to increase competitiveness to face the Asean
Economic Community (AEC) or the Asean Economy Community (AEC) (Kontan,
2014). Increased competitiveness is guided by several strategies including:
C.3.1. National industrial development

This national industrial development focuses on; priority industry development in


order to meet the ASEAN market, industry development in order to secure the
domestic market, small and medium industry development, and also human resource
development and research. In this sector, SBY made policies such as minimum wage
policies in the context of business continuity and improvement of workers' welfare.
Another policy is that SBY issued RI presidential policy number 18 of 2013
concerning the free trade area and Batam free port.

C.3.2 Development in the agricultural sector

Development in this sector focuses on increasing direct investment in the


agricultural sector and increasing market access. SBY set a policy where foreign
investors will more easily enter Indonesia. This policy was made in response to China
and India in gaining foreign investor confidence. This policy is also in accordance
with Presidential Instruction (Inpres) No. 3 of 2006. After that one year later President
SBY issued a law on investment aimed at encouraging the creation of conducive
national business conditions and accelerating the increase in investment. This is done
to gain the confidence of foreign investors as an economic driver for Indonesia.

C.3.3 Marine and Fisheries Development

Development in this sector has four focuses or strategies including; This


development aims to increase strength in institutional and marine and fisheries
positions, increase strength in competitiveness in the marine and fisheries sector,
strengthen domestic markets, and enhance and strengthen export markets.

C.3.4 Energy development

Energy development has a focus on increasing the electricity sub-sector and


reducing the use of fossil energy or Crude oil. In addition, this development is also
focused on the renewable energy sub-sector that is able to carry out energy
conservation and the development of this sector is able to increase energy and
electricity supply so that it can compete with other countries that have better
infrastructure (Deny, 2014).
D. CONCLUSION

President SBY in his emergence as a successful presidential candidate, trying to


use his personal charisma by taking on more roles standing out carrying external
politics in the country. By approaching to dialogue partners countries to reach foreign
trust in its seriousness in every commitment. Each series of agendas carried out by the
SBY government is a manifestation of efforts to prosper Indonesia and also achieve its
national interest in other countries. During SBY's administration, he considered that
ASEAN was one of the most important pillars in the foreign policy he carried out.
When viewed from the economic development, making ASEAN a foreign policy circle
is the right choice.

In addition, the foreign policy undertaken by SBY towards ASEAN is to realize


the ASEAN community. This community has 4 pillars and one of the pillars of this
community is the Asean Economic Community (AEC). Asean Economic Community
(AEC) is very important for Indonesia because of the economic conditions of
Indonesia with other ASEAN countries such as Malaysia, Thailand, the Philippines
and Brunei Darussalam where there are gaps. AEC was formed with the aim of
creating a single market in the ASEAN region.

With the establishment of the AEC, activities in ASEAN are more open and more
free. For this reason, in realizing the AEC in 2015, the SBY government tried to
prepare it as well as possible. In addition, with the AEC, Indonesia faces intense
competition in the economic field. Indonesia also has many opportunities to improve
its economy. AEC is expected to realize prosperity among ASEAN countries.

However, Indonesia's efforts to realize these opportunities did not escape the
challenges that must be faced. Therefore, Indonesia must be smart in taking advantage
of opportunities and facing existing challenges by issuing a policy. Such policies as
optimizing in improving the quality of Human Resources and also increasing the
quality and innovation in producing goods and services so that they can compete with
foreign products.
References

Cermati. (2017, 1 18). Peluang dan Tantangan dalam Masyarakat Ekonomi ASEAN
(MEA). Retrieved 12 5, 2019, from Cermati: https://www.cermati.com/artikel/
peluang-dan-tantangan-dalam-masyarakat-ekonomi-asean-mea

Deny, S. (2014, 9 14). Hadapi Pasar Bebas ASEAN, SBY Terbitkan Inpres. Retrieved 12 5,
2019, from Liputan 6: https://www.liputan6.com/bisnis/read/2105171/hadapi-
pasar-bebas-asean-sby-terbitkan-inpres

Kontan. (2014, 9 14). Hadapi MEA, SBY terbitkan inpres daya saing. Retrieved 12 5,
2019, from Kontan: https://nasional.kontan.co.id/news/hadapi-mea-sby-terbitkan-
inpres-daya-saing

Lestari, D. T. (2015). Kebijakan Luar Negeri Indonesia Terhadap ASEAN (Studi Kasus:
Kontribusi Kebijakan Luar Negeri Indonesia Terhadap Komunitas Politik
Keamanan ASEAN). 4.

Maksum, A. (2015, May). Poros Maritim dan Politik Luar Negeri Jokowi. Andalas Journal
of International Studies, 4, 5.

Nasution, N. (2016). Dinamika Politik Luar Negeri Indonesia . Yayasan Bina Insan Cita .

Nur, S. (n.d.). Politik Luar Negeri pada Era Asean Economic Community (AEC). 7.

Sapriansyah. (2016). Upaya Indonesia Meningkatkan Daya Saing Dalam Menghadapi


Msyarakat Ekonomi ASEAN (MEA). 2.

Saputra, A. B. (2012). Politik Luar Negeri Indonesia Dibawah Susilo Bambang Yudhoyono
. 11.

Widiatmaja, A. (2019). Indonesia di Era Susilo Bambang Yudhoyono (SBY) dan Joko
Widodo: Kebijakan Luar Negeri di Tengah Dinamika Lingkungan Strategis
Regional. Program Studi Diplomasi Pertahanan, Fakultas Strategi Pertahanan,
Universitas Pertahanan Indonesia, 78.

Вам также может понравиться