Author(s):
1. Bimo Adi Subagiyo, 2. Raisal Fahrozi Lubis, Brawijaya University, Indonesia

Abstract:
The Association of Southeast Asian Nations (ASEAN) has been the representative of regional economic cooperation and integration among developing countries. ASEAN\'s development, though gradual and slow, has consistently demonstrated an uphill shift from a focus on regional peace and stability to closer economic integration. Since ASEAN has also been an important axis of regional economic cooperation and free trade agreements (FTA) in Asia and Pacific’s, a big step toward realization of ASEAN Community is the Southeast Asia regional economic integration into ASEAN Economic Community (AEC) within 2015. These are vast and ambitious, and 2015 is less than two years away. Businesses need to have an international mindset, which gives them the appetite and ability to make cross-border investments and acquisitions. This paper aims to study about the challenges of ASEAN economic integration toward the ASEAN Economic Community (AEC). The challenges of ASEAN economic integration toward the AEC are how to improve ASEAN’s investment attractiveness and improve ASEAN’s international competitiveness. The economic integration process towards AEC will empower ASEAN to remain a dynamic and competitive player in the regional and global supply chains. ASEAN has a demographic bonus, such as abundant natural resources in its region and large supplies of professionals and talented people. By growing deeper economic linkages within ASEAN member countries, ASEAN will have the opportunities to leverage the strengths to pursue the AEC within 2015. Momentum has been established, as seen from many investments and merger and acquisition activities that has occurred in the region. AEC offers clear opportunities and challenges that all businesses need to be thinking about and preparing for. The AEC will leverage ASEAN’s capabilities with liberalization and investment facilitation. The AEC is definitely a work in progress.

Key words:
ASEAN, ASEAN Economic Community (AEC), Economic Integration, Regional Trade Agreements, The Challenges

Date of abstract submission:
22.11.2013.

Conference:
REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies