2. PRESENTATION OUTLINE
• ASEAN
– History
– Overview
– ASEAN Economic Community
– ASEAN Free Trade Area
• INDONESIA
– Overview
– Geographic of Indonesia
– Economy of Indonesia
6. OVERVIEW
ASEAN aims include
accelerating economic growth,
social progress,
cultural development among its members,
protection of regional peace and stability, and
opportunities for member countries to discuss differences peacefully
7. OVERVIEW
The fundamental principles, as contained in the Treaty of Amity and
Cooperation in Southeast Asia (TAC) of 1976
• Mutual respect for the independence, sovereignty, equality,
territorial integrity, and national identity of all nations;
• The right of every State to lead its national existence free from
external interference, subversion or coercion;
• Non-interference in the internal affairs of one another;
• Settlement of differences or disputes by peaceful manner;
• Renunciation of the threat or use of force; and
• Effective cooperation among themselves.
8. OVERVIEW
Three pillars of ASEAN
ASEAN Political-Security Community
ASEAN Economic Community
ASEAN Socio-Cultural Community
10. ASEAN Economic Community
The key characteristic
A single market and production base
A highly competitive economic region
A region of equitable economic development
A region fully integrated into the global economy
12th
ASEAN SUMMIT 2007
11. ASEAN Economic Community
The AEC areas of cooperation include
human resources development and capacity building;
recognition of professional qualifications;
closer consultation on macroeconomic and financial policies;
trade financing measures;
enhanced infrastructure and communications connectivity;
development of electronic transactions through e-ASEAN;
integrating industries across the region to promote regional sourcing;
enhancing private sector involvement for the building of the AEC.
In short, the AEC will transform ASEAN into a region with free movement of goods,
services, investment, skilled labor, and freer flow of capital.
13. ASEAN Free Trade Area (AFTA)
• Was establishes in 1992
• The objective of AFTA is to increase the ASEAN region's competitive
advantage as a production base geared for the world market
• The Common Effective Preferential Tariff (CEPT) Agreement for AFTA
requires that tariff rates levied on a wide range of products traded
within the region are reduced to 0-5%, quantitative restrictions and
other non-tariff barriers are eliminated.
14. ASEAN Free Trade Area (AFTA)
YEAR COMMITMENT for the SIX ASEAN Countries*
2000 85% of the Inclusion List with tariff of 0-5%
2001 90% of the Inclusion List with tariff of 0-5%
2002 100% of the Inclusion List with tariff of 0-5%
Time table for accelerating AFTA for the Six ASEAN Countries
(Inclusion List products)
* Indonesia, Malaysia, Philippines, Singapore, Thailand, and Brunei Darussalam
15. ASEAN Free Trade Area (AFTA)
4 categories of the products :
1.Inclusion List : manufactured products - including capital goods,
processed agricultural products, and those products failing
outside the definition of agricultural products.
2.Temporary Exclusion List : list of products which economies are
temporarily not ready to commit to the CEPT scheme.
•Should be transferred into IL
(Mining, forestry, fishery, etc.)
16. ASEAN Free Trade Area (AFTA)
3. Sensitive List : list of products which economies are
temporarily not ready to commit to the CEPT scheme (given a longer time)
(unprocessed agricultural products-rice, sugar, onion, etc.)
4. General Exception : permanently excluded from CEPT scheme
due to national security, public morals and health reasons.
(Gun, ammunition, narcotics, etc.)
17. ASEAN Free Trade Area (AFTA)
Time table for accelerating AFTA for all countries
ASEAN 6
1
2
3
2003
2007
2010
60% products with tariff of 0-5%
80% products with tariff of 0-5%
100% products with tariff of 0-5%
Vietnam
1
2
3
2006
2010
2015
60% products with tariff of 0-5%
80% products with tariff of 0-5%
100% products with tariff of 0-5%
18. ASEAN Free Trade Area (AFTA)
Time table for accelerating AFTA for all countries
Laos and Myanmar
1
2
3
2008
2012
2015
60% products with tariff of 0-5%
80% products with tariff of 0-5%
100% products with tariff of 0-5%
Cambodia
1
2
2010
2015
60% products with tariff of 0-5%
100% products with tariff of 0-5%
20. OVERVIEW
• 17,503 Islands
• 5 large islands
• 33 Provinces and 1
special
administrative
region
• 246,9 Millions
• Around 300 ethnic
• Over than 742
languages and
dialects
• 86% are Muslim
• 17,503 Islands
• 5 large islands
• 33 Provinces and 1
special
administrative
region
• 246,9 Millions
• Around 300 ethnic
• Over than 742
languages and
dialects
• 86% are Muslim
22. Geography of Indonesia
• AREA Total : 1,904,569 sq km
(Land: 1,811,569 sq km, Water: 93,000 sq km)
• CLIMATE
Tropical; hot, humid, more moderate in highlands
• NATURAL RESOURCES
Pretoleum, tin, natural gas, timber, bauxite, copper,
fertile soils, coal, gold, silver
