Toward ASEAN Economic Community: Revitalising Indonesia’s Position in Financial and Customs Cooperation

This paper is meant to provide a simple current line of discourse on Indonesian position in The ASEAN Economic Community (AEC) focusing in the financial and customs cooperation. AEC is the target of ASEAN economic integration 2015. In regards of favorable precondition: the market of 600 million populations, stable economic growth and relatively high investment level, in the long run AEC most likely will benefit every ASEAN members. The analysis tried to describe and develop issues correlations between financial cooperation: capital market development, liberalization of capital account, liberalization of financial service, ASEAN+3 bond m arket initiative, ASEAN+3 research group; and customs integration issues: Implementation of Strategic Plan of Customs Development (SPCD). There are two conclusions from the analysis. First, in the overall AEC scorecard, Indonesian position is in par with Lao PDR and Cambodia but far behind other members (April 2013 position), while in the context of financial cooperation, Indonesian position is far above BCLMV, competing with Thailand and Philippines but still behind Malaysia and Singapore (ASEAN Cooperation). These facts fortify the urgency of accelerating the implementation of AEC initiatives and reassessing Indonesian position in ASEAN financial cooperation and ASEAN+3. Further, over SPCD 15 strategies as the instruments for customs integration, the paper wrapped up the importance of customs administration capacity building, mainly focused on improving customs procedure, customs valuation rules, rules of origin, and customs modernization. The paper will further articulated the issue recommendations on steps and caveat for policy formulation and harmonization both at national and regional level.