ASEAN Territorial Trading Liberalization through ASEAN Charter Retification for Indonesia under the Legal Aspect Review

AIJOSH | This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License Vol. 3 No. 2 (2021) Andalas International Journal of Socio-Humanities ISSN: 2715-601X (Online) Available at: http://aijosh.lppm.unand.ac.id/index.php/aijosh/index DOI: https://doi.org/10.25077/aijosh.v3i2.21 Article ASEAN Territorial Trading Liberalization through ASEAN Charter Retification for Indonesia under the Legal Aspect Review M. John* & Delfiyanti Department of Law, Universitas Andalas, Indonesia Article Information Abstract Received : September 25, 2021 ASEAN Charter is the most important “legal instrument” and sucessor of Bangkok Declaration 1967. It also contain the status and position of ASEAN on the including agreement. The Charter come into effect since 15 December 2008 after ratification of ten ASEAN member-states. Indonesia was ratifying by Act No.38 of 2008 on ratification of ASEAN Charter. It had a legally binding to Indonesia. The content related to the establishment of ASEAN Economic Community in economy, socioculture, and security politics. Moreover, the agreement comprise a critical issue, trading liberalization or “ASEAN Single Market” through ASEAN Economic Community. Therefore, the ratification of ASEAN Charter gives significant influence to the Indonesia in the future. By the reasons, the objectives of research are, first, analyze the implication of Act No.38 of 2008 on ratification of ASEAN Charter to Indonesia in correlation with ASEAN Economic Community under legal aspect review, and second, analyze the challenge and opportunity in participation of ASEAN Economic Community as indonesia has ratified the Charter. Revised : November 23, 2021 Accepted : December 23, 2021 Published : January 20, 2022 Keywords trading; liberalization; ASEAN; ratification; Indonesia *Correspondence INTRODUCTION Established in 8 August 1967 under Bangkok Declaration, ASEAN is a regional organization in southeast Asia has long been establish and considered by international trading. It is an association of nations with specific characteristic and plurality than any perspective. In accordance with the development of ASEAN, the Summit 13th at Singapore of 19-22 November 2007 has become a mailstone of important change to the organization. It is caused by signed two documents of agreement, ASEAN Charter and ASEAN Community. The Charter come into effect since 15 December 2008 after ratification by the member-states thus it is validate the charter in built the regional block into the offcial institution for the first time in history since four decades of establishment. The Charter come into effect in 15 December 2008 s member-states submit the ratification to the Secretary General of ASEAN. Inauguration carried out by president of Republic of Indonesia, Mr. Susilo Bambang Yudhoyono in ASEAN secretariat. The enforcement for Indonesia validated by Act No. 38 of 2008 on ratification a Charter of The Association of Southeast Asian Nations. The implementation was confirmed in ASEAN Summit 14th in Hua Hin, Thailand of 28 February – 1 March 2009 (Papp, 1996). In the ASEAN Charter was found a provision in create the ASEAN community of 2015. It is consist of 3 stakes, security political community, economic community, and socioculture community. To attain the ASEAN Community 2015, the organization create the blue print of 3 stakes. It is 89 AIJOSH | This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License Vol. 3 No. 2 (2021) become a manual of direction for establishment. The blue print of ASEAN Economic Community ratified in ASEAN Summit 13th of 2007 at Singapore. Then, the remains, Security Political Community and Socioculture Community ratified in ASEAN Summit 14th of 2009 at Cha Am Hua Hin, Thailand. Moreover, in the summit signed Cha Am Hua Hin Declaration on road map of establishment ASEAN Commnity of 2009-2011. In this case, an idea of community or ASEAN Economic Community early delivered by prime minister of Singapore, Goh Cok Tong in ASEAN Summit 8th in Phnom Penh of 4 November 2002. The Secretariat of ASEAN records the statement of Goh Cok Tong in 19 November 2002 that “ASEAN must be seean as working in aclear direction towards a clear goal. Our cooperation projects must be really working. Singapore proposes Asean Economic Community as an end point, not like EU now, but like the EEC of the earlier years with some suitable elements that could be adopted by ASEAN. Ministers and offocials concerned should study and reports their finding and recommendation at the Asean Summit 9th.” The progress in ASEAN continue until advent an idea regarding the formation of integrated ASEAN Economic Community (AEC) as well as the single market of European Union Society. European Single Market was estbalish the powerful economy among the member-states even more agree on single currency for Europe known as “Euro”. It is do not the currency only but unity and increase the trade traffic in the territory. The ASEAN Charter of 2008 is a substitute of Bangkok Declartion of 1967 that was become an instrument of establishment of ASEAN. It is a mailstone of ASEAN in signed relationship for the future. The Charter has made ASEAN powerful under “legal personality” as questionable by concerned parties. Another equally important thing is that the Charter containing long-term plan through the vision of ASEAN 2020 for ASEAN Community. Thereafter, ASEAN Summit of Cebu Philipine of 2007 was agreed to advance the ASEAN Community including 3 stakes, security political community, economic community, and socioculture community. they are related and support each other, but the ASEAN Economic Community is the most important issue as it come into contact with social economic activity (Puja, 2019). For Indonesia, welcoming ASEAN Economic Community become an opportunity and challenge. Indonesia signed the ASEAN Charter in 2008 and ratified by Act No. 38 of 2008 on Ratification of ASEAN Charter. Moreover, Indonesia involved in create the ASEAN Community Blue Print. The ratification through Act No. 38 of 2008 results in Indonesia being legally “bound by agreement” including support an establishment of collective single market in ASEAN territory. Therefore, Indonesia must prepare for trading competition with the other member-states of ASEAN. The existing provisions of trading must prepare and synchronized with the “blue print” of ASEAN Economic Community was agreed by the member-states for ASEAN single market through the trading liberalization mechanism. RESULT AND DISCUSSION An Implication of ASEAN Charter Ratification to Indonesia for Trading Liberalization The ASEAN Economic Community (AEC) is a concept was used first in Declaration of ASEAN Concord II in Bali (Bali Concord II), October 2003. It is one of the stake of implementation of ASEAN vision together with ASEAN Security Community (ASC) dan ASEAN Socio-Cultural Community (ASC (...truncated)