ASEAN INTEGRATION AND OPPRTUNITY FOR INDONESIA

Economic Integration among ASEAN countries is necessary to facing global competition. Develop ASEAN as a fully integrated and highly competitive region must envolving all element of ASEAN. It cannot be done by one country. We must realized about the importance of Integration in South East Asia and what its necessary to do to be fully integrated region. Integration with no zero sum game, integration to make a win-win sollution for the member countries.

The global economic crisis that began in the United States and then spread to Europe and some Asian countries makes the world again turned its attention to countries emerging asia. At the moment the United States who suffered the twin deficits (balance of trade deficit and budget) and some countries in Europe which should be in the bail out because the budget deficit, not a few countries of Asia who actually enjoys a good surplus in trade balance and balance the budget. China for example is still posted the largest reserves in the world with 2.5 trillion U.S. dollars while its economic growth had faltered down to single digit , China remains a world economic giant today. Indonesia itself as part of ASEAN also continued to maintain foreign reserves at the level approximately of 115 billion U.S. dollars. Singapore which had recorded minus growth also began to recover and record positive growth. At the moment there is no sign of recovery towards the U.S. and European economies, as well as the threat of impending double dip recession because the balance a huge budget deficit, asia to be excellent for the entry of new investments.

When capital flows comes to Asia as well as to countries in Southeast Asia are still many problems that become obstacles in the absorption of incoming investment. Capital flows that have not yet all can be absorbed into the real sector. This is not out of lack of integration among countries in East Asia including Southeast Asia. AEC (ASEAN Economic Community) that was launched in 2015 indicates that the awareness of stakeholders on the importance of an ASEAN economic integration. Economic integration becomes an absolute necessity for a state because in the middle of limited ability, the State should be able to compete in world economic competition and still get gains from international trade.

Flying geese
Akamatsu (1930) suggests that as time advances developed countries will shift production to developing countries. To produce an item is no longer necessary to do so in a country. But it can harness the advantages of the other countries. This concept was then called with flying geese whereby developed countries would be a leader in the economy followed by developing countries that are behind it to support the production process. For example the time you buy a macbook then you will no longer get it from U.S. products. Macbook designed in the U.S. and then the software installation will be done in India, and ansembled in china. The chip used is produced in Japan or Korea as well as with its LCD screen, will you get it from japan. The phenomena there are no products that are produced by one country show that every state can get added value from their participation in producing a consumption product.

Infrastructure Integration
Economic integration is not only focusing on corporate and governmental policies or tariffs but also paying attention to the connectedness between countries are integrated. This proved important and can contribute to spur economic growth in particular and the integration of the region in general. Bhattacharyay (2010) put forward on infrastructure connectivity among ASEAN countries to support the integration process in ASEAN. Infrastructure plays a very important role for the process of integration and connectivity among ASEAN countries. With the infrastructure of each country can be connected to each other. Infrastructure can also support the economic process because the flow of goods and factors of production will become more fluent when infrastructure.

Monetary integration
Another things that discussed many circles is about the integration of monetary or in other, more popular form of currency unification. Talking about a currency union is not new. Many economists who argue that currency union becomes absolutely necessary when a region wants built. This is based on the number of conveniences that occur in today's society can be unified currency. After seeing the success of the Euro in European economists began to speculate about the occurrence of the same thing in Asia.

ASEAN countries which are developing countries still face some problems which can hamper economic integration such as poverty, corruption, and political uncertainty. This must be addressed by each country. Welfare of the people do not get overlooked simply because of political selfishness. Each stakeholder should be aware of the importance of unity among ASEAN countries. That unity is happening would be good for people's welfare. Because if integration is only driven by a single country then this may lead to neo-colonialism in which a state will control the other countries. A strong economic foundation in each country must be achieved. The provision of public goods like education, health, and infrastructure must have been completed in each ASEAN member country before embarking on the process of further integration. Integration must be driven by economic not by the political decision. Unify inequality will only lead to conflict and chaos. The purpose of the AEC 2015 to realize the ASEAN region to become an integrated and competitive will not be reached without the participation of all stakeholders, both public and private.

Haris Darmawan
Chief of Strategic Research Department
BEMFEBUGM

References
Quarterly Report of Indonesian Economy The World Bank. Desember 2010
Bhattacharyay,Biswa Nath. Infrastructure for ASEAN Connectivity and Integration. ASEAN Economic Bulletin, Vol 27 pp 200-220. 2010
Eichengreen, Barry. The Parallel-Currency Approach to Asian Monetary Integration. The American Economics Review. 2006

Prasetiantono, A.Toni. Perang Kurs dan Prospek Rupiah. Kompas 22 November 2010

Prasetiantono, A. Toni. Hot Money dan Infrastruktur. Media Indonesia 18 Oktober 2010

Schwab, Klaus. Global Competitiveness Report. World Economic Forum. 2010