Many People Still Misinterpret ASEAN Economic Community

TEMPO.CO, Jakarta - Faisal Basri, the economist from Universitas Indonesia, yesterday, said many people still misunderstand about the ASEAN Economic Community (AEC). "Many people interpret the AEC similar to the European Union that adheres to economic integration principle. They are actually different."

ASEAN was established to form a cooperation, which means that AEC framework aims to increase connectivity between countries.

"So, AEC, which will be established in 2015. It needs to be understood as a strategy to enhance partnership between countries," said Faisal, adding that AEC will not implement a single currency like the euro currency in Eurozone.

The partnership is a gate to increase traffic for commodities, labors, capitals and businessman wishing to invest in ASEAN countries. "A wider and more efficient economic region will invite more foreign investors," Faisal said.

Investment from the global market to ASEAN is larger than investment among ASEAN countries. "Investment from global market to ASEAN is US$67 billion, higher than that of ASEAN countries which is only US$26 billion," Faisal stated.

All of these reasons show that AEC in 2015 is not a threat to the Indonesian economy. "AEC is a big opportunity for Indonesia to increase its gross domestic product that reached US$2.2 trillion last year. It was the highest compared to other ASEAN countries," Faisal said.

RAYMUNDUS RIKANG R.W