ASEAN convenes under shadow of global oil shock

ASEAN convenes under shadow of global oil shock

Top officials from across Southeast Asia packed a hectic schedule of back-to-back meetings in Cebu, the Philippines, on Thursday, laying the groundwork for the leaders' summit while zeroing in on a unified ASEAN response to the Middle East crisis, as fears of a deepening energy crunch hang over the 11-nation bloc.

<ASEAN convenes under shadow of global oil shock - Asia & Pacific - The Jakarta Post>

Southeast Asia oil crisis puts sovereign ratings at risk

Southeast Asia oil crisis puts sovereign ratings at risk

Subsidies to offset soaring fuel prices could worsen finances, inflation

<Southeast Asia oil crisis puts sovereign ratings at risk - Nikkei Asia>

Military and trade wars, protests: Top Southeast Asian stories of 2025

Military and trade wars, protests: Top Southeast Asian stories of 2025

Political upheaval, scam centers and a mixed economic picture also grabbed headlines

<Military and trade wars, protests: Top Southeast Asian stories of 2025 - Nikkei Asia>

Southeast Asia's homegrown pop music surges in popularity

Southeast Asia's homegrown pop music surges in popularity

In Indonesia, local content outpaces U.S. artists in streaming share

<https://asia.nikkei.com/Spotlight/Datawatch/Southeast-Asia-s-homegrown-pop-music-surges-in-popularity>

China cosmetics brands target growing Southeast Asian market

China cosmetics brands target growing Southeast Asian market

Skintific and Judydoll gain momentum with products tailored to local skin concerns

<https://asia.nikkei.com/Business/Consumer/China-cosmetics-brands-target-growing-Southeast-Asian-market>

Southeast Asia expands trade as a neutral hub in a divided world

Southeast Asia expands trade as a neutral hub in a divided world

Extra-regional trade to grow $1.2tn in 10 years but deficits with China soar  

<https://asia.nikkei.com/Spotlight/Datawatch/Southeast-Asia-expands-trade-as-a-neutral-hub-in-a-divided-world>

Indonesia's economy grew 5.05% in Q2

Indonesia's economy grew 5.05% in Q2

Southeast Asian nation's GDP expands as holiday demand, foreign tourists spur growth

<https://asia.nikkei.com/Economy/Indonesia-s-economy-grew-5.05-in-Q2>

High Time for Digital Cooperation between Korea and Indonesia(3)

High Time for Digital Cooperation between Korea and Indonesia

It is Singapore and Indonesia which has been spotlighted the most for the startup frenzy in Southeast Asia. The two countries have been in the forefront of the development of the digital economy in the region. 

Singapore has been recognized to incubate the advent of the digital era with its strong commitment to innovation while Indonesia has been viewed to beef up the digital fever based upon its presence as the most sizeable playground. The fact that 9 out of 11 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the ASEAN digital economy.

High Time for Digital Cooperation between Korea and Indonesia(2)

High Time for Digital Cooperation between Korea and Indonesia

In fact, startup boom deserves named as one of the hot issues in Southeast Asia since mid-2010s. Startup markets across Southeast Asia have been rapidly gaining momentums. Local leaders of the digital economy such as Grab in Singapore which acquired the Southeast Asian business unit of Uber in 2018 have been acclaimed for changing the conventional industrial map in the region.

Consequently, as many as 11 unicorns, privately held startup companies valued at over $1 billion, have emerged from various industries such as the mobility, the e-payment and the online game.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(50)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

This is why extra active commitments of the Indonesian government to the AEC and ongoing engagement of the Singaporean government for the success of the AEC remains essential at this critical juncture. 

Although local perspectives on the AEC mostly extracted from the publications cited above consist of primary sources for my argument, this paper may be potentially exposed to criticisms indicating lack of real comments on the spot.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(49)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Perspectives and following readiness of the two countries toward the era of the AEC, though not entirely, are necessary to keep paced with each other. Otherwise, outputs of the more sophisticated regional economic integration may be distributed in a one-sided fashion. 

If Singapore carries on being overwhelmingly outshined along with the AEC, political and diplomatic relation between the two countries may be subject to be worsened accordingly.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(30)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

The larger players, being more experienced, point out that whilst the ASEAN agreements are being help up as the way forward, delays or non-implementation of signed agreements are too common occurrences. 

A more basic reaction from businesses is tied to the process itself of drawing up the ASEAN economic agreements. An underlying concern is that the agreements are concluded without the involvement of or consultation with the private sector.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(12)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

The joint vision was adopted by Leaders in November 2007 at the 13th ASEAN Summit and culminated in the ASEAN Economic Community (AEC) Blueprint. 

It is a Blueprint that has served as a comprehensive master plan to chart the region's journey towards the formal establishment of the AEC. As projected by the AEC Blueprint, the AEC was finally launched on the 31th of December, 2015.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(7)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

ASEAN consists of 10 member countries. 5 countries including Malaysia, Singapore, Indonesia, Brunei and the Philippines are located in the maritime ASEAN. Remaining 5 countries, Myanmar, Thailand, Laos, Cambodia and Vietnam are positioned in the continental area. 

Since its foundation slightly over 50 years ago, ASEAN has evolved into one of the most dynamic regions with agile economic achievements in the world. Experts point out that ASEAN's outstanding performance has been attributed to its economic cooperation and integration initiatives picking up steam over the past two decades.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(43)

Comparative Study on the Perception and Response of Singapore and Indonesia

Nevertheless, overall perception and response of Indonesia is assessed still lagging behind those of Singapore. This could explain why governmental attention and consideration for non-major players in the business sector including SMEs would be top priority for Indonesia to pave the way to the AEC. 

Truly speaking, as a backbone of the national economy, Indonesian SMEs have undertaken as much as 59% of the GDP and 97% of the business establishments.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(40)

Comparative Study on the Perception and Response of Singapore and Indonesia

Proactive approach of SMEs in Singapore toward the AEC may demonstrate Singapore's skyrocketed anticipation for the new generation of a common market. Most experts have been in the same boat that the AEC may serve Singaporean SMEs armed with regional competitiveness well to navigate tremendous business momentums in one single market with 650 million populations. 

Besides, awareness of the importance of the AEC is not only high in the corporate sector but also considerably widespread among the general public in Singapore.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(25)

Comparative Study on the Perception and Response of Singapore and Indonesia

In other words, the perception of and response to the formation of the AEC in Singapore and Indonesia are intensively discovered in the papers. Accordingly, perspectives of Singapore and Indonesia can be drawn out respectively. 

The 4 papers are 'Deadline 2015: Assessing Indonesia's Progress towards the AEC' by Hadi Soesastro and Raymond Atje, 'Role of the Singapore Private Sector in ASEAN Economic Integration' by Juliana Giam, ASEAN Economic Integration: Perspectives from Singapore' by Ong Keng Yong and 'Perspective of the Indonesian Business Sector on the Regional Integration Process' by Widdi Mugijayani and Pratiwi Kartika.

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(1)

Comparative Study on the Perception and Response of Singapore and Indonesia

The ASEAN (Association of Southeast Asian Nations), the 6th largest economy in the world appeared quite noisy in the first half of 2018. Singapore seems advantaged with its efforts to raise its national reputation as the hub of neutral diplomacy after successfully hosting the historical summit between North Korea and the United States. 

Internal disorder in Malaysia triggered by the opposition party's recent victory on general election looms large as the new Prime Minister, the comeback kid at 92 has clarified his policy shift apart from the previous cabinet.

Why the World Pay Attention to Indonesia(1)

Why the World Pay Attention to Indonesia

'Biggest island country in the world', 'Country with the largest Muslim population', 'Generate 40% of the total GDP(Gross Domestic Product) in ASEAN(The Association of Southeast Asian Nations)'. 

All are called to describe Indonesia. Truly, the world is paying attention to Indonesia armed with the above top records even hard to get one by other nations.

 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(40)

Comparative Study on the Perception and Response of Singapore and Indonesia

As identified above, Singapore and Indonesia may have been claimed to pour continuous efforts to cope with the era of the AEC. Both countries have concentrated on the advent of the AEC and the impacts that the new regional economic community would bring to them. 

Nevertheless, there are yet complaints especially from the private sectors in both countries that incomplete information sharing and insufficient corporate engagement on the core agendas of the AEC has been left shortages.