THE ROLES OF ASEAN ECONOMIC COMMUNITY IN SUPPORTING THE MICRO, SMALL AND MEDIUM ENTERPRISES IN INDONESIA (2015-2017)

Abstract

ASEAN as the regional organizations in Southeast Asia has ASEAN Economic Community with purpose to create single market and production base leading to the equitable regional competitiveness that integrated to the global economy. Therefore, Indonesia as one of ASEAN member countries have to compete in increasing its economic development as the way in facing the equitable regional competitiveness. That is why ASEAN Economic Community can give roles in supporting the Small and Medium Enterprises in Indonesia. The more MSMEs showing the progress towards the Indonesian economic development, therefore, ASEAN Economic Community success to implement its roles. There are five roles of ASEAN Economic Community in supporting the development of micro, small and medium enterprises in Indonesia as one of the ASEAN member states, the first role is simplify the Rules Of Origin (ROO) in enhancing the trade process, the second role is recommending the member of ASEAN to strengthen the transparency over the rules and regulation in purpose to protect the investment flow, the third role is recommending the member in providing the financial inclusiveness to the society, the fourth role is through the Mutual Recognitions Agreements (MRAs), ASEAN is providing equality of qualifications to the practitioners in finding the employment in all of ASEAN countries, the fifth role is narrowing the development gap in the society. Using the Neoliberalism theory in the analysis of Single Market and Production Base and Modernisation theory in the analysis of Equitable Economic Development