The Bangkok Declaration, 8 August 1967, became the initial formal form of ASEAN commitment. The strategic territory of ASEAN member countries makes this region the basis of the Eastern and Western blocs, like in Vietnam and the Philippines, and even other bilateral conflicts, such as in Laos, Vietnam, Cambodia, and Indonesia and Malaysia (Alfari, 2023). The conflicts and tensions that have occurred in relations between member countries have made several leaders aware that it is necessary to create a forum that facilitates the resolution of conflicts and tensions that occur in the region so that they hope to maintain defense stability and create economic cooperation in Southeast Asian countries, because basically awareness of conflict can be detrimental to each other. Therefore, the presence of ASEAN is important to maintain.
ASEAN is a regional organization carrying out its functions in a variety of economic, technical, scientific, social, and cultural sectors. The course of ASEAN is based on respect for justice and the rule of law in relations between countries in the region and compliance with the principles of the UN Charter. Based on the Bangkok Declaration, the presence of ASEAN is to accelerate economic growth, social progress, and cultural development in Southeast Asian countries. In its progress, the existence of the ASEAN Charter as a commitment to an ASEAN constitutional framework, which makes ASEAN an organization with valid laws and a legal subject, was legalized through Law No. 38 of 2008 (Sobar Sukmana, 2024). So the presence of the Jakarta Charter provides flexibility for cooperation in cooperation opportunities for various parties, especially in attracting investment from various companies.
The variety of global challenges, both traditional and non-traditional, makes ASEAN continue to adapt in its steps. This challenge can disrupt geopolitics and its tensions, global health crises, and economic uncertainty. ASEAN’s urgency is present to continue to maintain solidarity and close cooperation, which has an impact on ASEAN’s position on the global stage. Thus, ASEAN can play a strategic role in bringing its national interests to bear on influencing international policy. In this context, the author agrees for ASEAN to be maintained. Because it is important for ASEAN to continue to strengthen cooperation mechanisms and strengthen collective commitment among its member countries. In accordance with ASEAN principles, namely that every ASEAN cooperation must be realized in a useful, effective, efficient, and rational manner. This involves increasing institutional capacity, promoting shared values, and developing strategies that are adaptive to global change. In this way, ASEAN can ensure that they not only survive but also thrive amidst ever-changing global dynamics. This article will discuss why solidarity and cooperation among ASEAN member countries is very important in facing current global challenges, especially in the economic field, as well as how ASEAN can strengthen its role as a strong and influential regional actor.
ASEAN Economic Significance
In terms of economic integrity, ASEAN has succeeded in showing a significant rate of economic growth. ASEAN, with 11 members with different economic levels, makes these member countries collaborate with other partners to accelerate economic progress so that this not only helps stabilize the economy but also encourages global economic growth. In international cooperation relations, ASEAN has a crucial role. This can be seen from the 1.73 trillion US dollar regional economy in the global economy in 2021. This is dominated by export trade in the intra-regional sphere. ASEAN accounts for around 20% of global trade value (Kominfo, 2023).
Figure 1. Economic growth rate in ASEAN, 2013-2022
According to data from the ASEAN Statistical Yearbook 2022, ASEAN is categorized as having the largest regional trade value among trading partners in the 2019-2021 period. In fact, it is recorded that the annual intra-ASEAN regional trade value reaches 638 billion US dollars, around 21% of the total trade between regions in the world. (Kominfo, 2023) Judging from the data that ASEAN is strengthening its steps and commitment so that the rate of economic growth can develop, this cooperation can be interesting. FDI Indirectly, ASEAN can potentially benefit from the tourism or industrial progress of member countries.
In the investment sector, it is a concrete example that ASEAN has succeeded in attracting direct foreign investment to ASEAN countries. It can be seen that the total foreign direct investment (FDI) received by ASEAN totals US$174 billion, and this has increased by 42% in 2021 from the previous year. With Singapore as the largest recipient of foreign investment. In this case we can see that ASEAN is aiming for regional resilience through its total number of FDI, which was accepted, even though global challenges presented themselves unpredictably, such as the presence of a pandemic. FDI saw that ASEAN countries showed rapid economic growth. The increasing population also makes ASEAN the right target for the largest consumer market in the world because demand for goods and services is increasing. ASEAN’s strategic position as a world trade center, coupled with easy access to markets from East and South Asia to Australia, supports ASEAN and its role in logistics and trade relations. Until now, ASEAN still maintains the manufacturing, technology, and service sectors, a form of ASEAN’s relevance in diversifying its economy, so that opportunities for FFROM increased. ASEAN regional integrity leads ASEAN to create a relatively stable political regional atmosphere and environment, as well as a well-maintained economy.
ASEAN Cooperation and Agreements in the Economy
The atmosphere of peace and stability created by ASEAN has spurred member countries’ economic growth to be better than the world average. Based on the ASEAN Charter, a blueprint for the ASEAN Community was established, which was built on three pillars: ASEAN Economic Community (AEC), ASEAN Political-Security Community, and ASEAN Socio-Cultural Community. The MEA was agreed upon at the 4th ASEAN summit in 1992, becoming an agreement between ASEAN member countries as a trade-free area in order to increase the region’s economic competitive capacity in the global area (Diggantoro, 2016).
ASEAN and its role in the MEA have an important role, with a 4-pillar blueprint, i.e.,
1. Going to a single market and production-based economy, namely the free flow of trade for the sectors of goods, services, investment, skilled workers, and capital.
2. Towards the creation of a highly competitive regional economic area (regional
competition policy, IPRs action plan, infrastructure development, ICT, energy cooperation, taxation, and SME development).
3. Towards an area with equitable economic development (region of equitable economic development) through SME development and the Program Initiative for ASEAN Integration (IAI).
4. Towards full integration into the global economy (a coherent approach to external economic relations and encouraging participation in global supply networks) (Pramudyo, 2014).
ASEAN Opportunities with Economic Integration through MEA
ASEAN’s adoption of the AEC has had a positive impact on its presence opportunities for FDI with the presence of a single market for integrated production among ASEAN member countries, making it easier to access the flow of goods, services, investment, skilled employment, and free flow of capital in economic efficiency and responding to global challenges. If countries are aware that this can be utilized in a collective bargaining position on the global stage. With more uniform economic rules and policies, economic risk and uncertainty can be reduced, which is important for attracting and retaining investment. ASEAN, through the MEA, also collaborates on social and environmental issues, such as food security, health, education, and climate change. This cooperation helps in creating joint solutions to the challenges faced by the region.
MEA aims to create a common market and integrated production base. This increases competitiveness and economic growth in the region. The success of the MEA is reflected in increased investment and connectivity in ASEAN. So basically, ASEAN must be maintained because the presence of ASEAN can maintain stability and security, develop the region rapidly economically as a sound platform that will be brought to the international arena, provide a venue for cultural exchange, resolve conflicts peacefully through dialogue and negotiation, and serve as a center for a variety of other regional initiatives that can become an integral part of the political and economic structure of Asia Pacific.
However, ASEAN does need to revise some of its principles and steps because in resolving regional conflicts, ASEAN is considered quite weak and late because of the principle of non-intervention and weakness in enforcing decisions; a consensus-based decision-making system often slows down the process and results in weak decisions. This is because every decision must be approved by all members, which can lead to deadlock. There are huge gaps in terms of economic development and political systems between member countries. This can hinder closer collaboration due to differences in priorities and capabilities. Despite progress in economic integration, e.g., the ASEAN Economic Community (AEC), there are still many non-tariff barriers and regulatory differences that hinder the free flow of goods, services, investment, and labor. By addressing existing criticisms and implementing these suggestions, ASEAN can become a stronger and more effective organization in facing future challenges and advancing the common interests of its member countries.
Conclusion
ASEAN’s urgency is present to continue to maintain solidarity and close cooperation, which has an impact on ASEAN’s position on the global stage. Thus, ASEAN can play a strategic role in bringing its national interests to bear on influencing global policy. In its journey, ASEAN has succeeded in increasing the rate of economic growth, as seen from the 1.73 trillion US dollar regional economy in the global economy in 2021. This is dominated by intra-ASEAN export trade, around 20% of the global trade value. The atmosphere of peace and stability created by ASEAN has spurred member countries’ economic growth to be better than the world average. However, ASEAN needs to revise several principles and steps, such as weak law enforcement, long-winded decision-making, economic disparities, regulatory non-tariff barriers in the flow of goods, services, investment, and free labor, etc. Therefore, ASEAN must be aware of the shortcomings that have occurred so that ASEAN can strengthen its steps to become a stronger and more effective organization in facing future challenges and advancing the common interests of its member countries.
