The Ability Of Indonesia In Facing ASEAN Economic Comunity Market Competition

20130524ASEAN_Economic_CommunityAbstract – Entering the free market of Southeast Asia in 2016, Indonesia as one of the countries member in ASEAN should be able to compete with the other Southeast Asian countries. This study analyzes Indonesian competitive advantage compared to other countries of Southeast Asia which aims to provide inputs to the employers, the government and people of Indonesia.

The theories used in this study are Michael E. Porter’s Diamond Model (Porter, 2010) and Dong-Sung Cho 9 Element Matrix (Dong, 2010) to analyze the competitive advantage of nations. Pre-test is done by using the model of triangulation to get the same perception of the questions used. The method used in this research is qualitative, and collecting data is done through in-depth interviews with respondents from various countries and professions who are expected to represent different backgrounds and point of views. Results were analyzed using IFE (Internal Factors Evaluation) matrix and BCG (Boston Consulting Group) matrix to determine the position of Indonesia among all of the AEC members.

The results showed that Indonesia still could not compete well in ASEAN Economic Community. Based on the Diamond model of Michael Porter, there are four factors which form the competitive advantage of a nation, and among all of those four factors, Indonesia only has one factor, which is not competitive enough to survive in ASEAN Economic Community.Therefore, Indonesia should improve in several aspects such as social security reform, education, security from terrorism, internet based system and building more numbers of new ports.

References

Porter, M. E. (1990). The Competitive Advantage of a Nation. New York.

Yuliana, Primadiana (2015), Analyzing Asean Economic Integration Development To Enforcement of Asean Economic Community (AEC) 2015, Online Public Access Catalog : Univesity of Gajah Mada.

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