ASEAN Economic Community In Indonesia

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1.1 History and Background of ASEAN Economic Community in Indonesia Indonesian business environment today has been influenced by various factors such as ASEAN Economic Community (AEC). ASEAN Economic Community itself also give an influence to the 9 ASEAN country besides Indonesia. ASEAN Economic Community can affect the business environment especially in the country’s activity. ASEAN Economic Community has four pillars, they are a single market, a competitive economic, equitable economic, and integration in the global economy. From the Indonesia President, Joko Widodo has a regulation that focus on the ASEAN Economic Community. His regulation in ASEAN Economic Community is to reduce the protectionism in measures (non-tariff barriers) and…show more content…
ASEAN Economic Community (AEC) established in 2015. In 2014 ASEAN Economic Community become the largest economy in Asia and the seventh largest in the world, because of the ASEAN Economic Community it makes the cooperation and integration among the ten member countries especially in Southeast Asia. (Association of Southeast Asian Nations, 2015) One of the Multinational Corporation (MNC) and also as an insurance company that focus to the ASEAN Economic Community and contribute to the small medium enterprise is Allianz. Allianz is an insurance company founded in Munich, Berlin on February 5, 1890. Allianz is an insurance company in managing the transport and accident insurer with 20 percent of its premium income is from international operations because the outbreak of World War I. (Aliianz, 2015) The GDP (Growth Domestic Product) of a multinational company can exceed the GDP of a country, so that multinational corporations can influence the world to cooperate with the WTO (World Trade Organization) and the World Bank. The multinational companies can help the country’s GDP especially related to the activities of ASEAN Economic Community. The influence of multinational companies must not only be felt by the government or the state, but the society also felt or even become the target of the multinational companies to launch its marketing…show more content…
Production began to be developed and deployed to various regions resulting in the expansion of the company. In Indonesia, the first time of the rising multinational company is from VOC (Veerenigde Oostindische Compangnie) which is a trade union founded by the Dutch in Indonesia. There are also political reciprocation being addressed by Douwes Dekker in the days of forced cultivation occurring in the colonial period, political reciprocation can be equated with CSR (Corporate Social Responsibility) today because of the political reciprocation is the provision of welfare responsibilities to society in the colonial timed previously in Indonesia. Multinational Corporations or commonly called as a MNC is a multinational or transnational companies. The multinational company is a company that has its headquarters offices in their home country, and has branch offices in developed countries and developing countries. Multinational corporations must undertake expansion in terms of its business to various countries to various countries by have a branch office in that

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