Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(32)

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

To its credit the Indonesian Government has taken the necessary steps to incorporate its commitments to the AEC into the country's national economic development programs. 

Ever since Indonesia initiated trade liberalization in the mid-1980s, it has significantly reduced tariff rates, more or less across the board. In 2007, Indonesia introduced a new investment law aimed at making Indonesia more attractive to foreign investors.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(35)

Comparative Study on the Perception and Response of Singapore and Indonesia

To its credit the Indonesian Government has taken the necessary steps to incorporate its commitments to the AEC into the country's national economic development programs. 

With regard to its commitments to the AEC, there is, unfortunately, no simple way to verify the degree of the Indonesian Government's compliance. Ever since Indonesia initiated trade liberalization in the mid-1980s, it has significantly reduced tariff rates, more or less across the board.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(33)

Comparative Study on the Perception and Response of Singapore and Indonesia

According to the papers by Hadi Soesastro and Raymond Atje (p. 72-77.) and Widdi Mugijayani and Pratiwi Kartika (p. 210-212.), Indonesia's major perception of and response to the formation of the AEC can be summarized as below. 

To its credit the Indonesian Government has taken the necessary steps to incorporate its commitments to the AEC into the country's national economic development programs. With regard to its commitments to the AEC, there is, unfortunately, no simple way to verify the degree of the Indonesian Government's compliance.