Asean Economic Integration: A Community Vision Versus Structural Reality

Abstract: Economic integration within ASEAN, facilitated by the establishment of the ASEAN Economic Community (AEC), constitutes a strategic legal and policy framework aimed at transforming Southeast Asia into a unified market and production hub with enhanced global competitiveness. This article analyses the disparity between ASEAN’s aspirational vision of economic integration and the actual legal and structural realities of its implementation. Employing a normative juridical approach complemented by regional legal and policy analysis, the study demonstrates that, although ASEAN has successfully established a low-tariff legal regime and attracted significant foreign direct investment, the AEC continues to face challenges stemming from fragmented legal implementation and inconsistent regulatory enforcement. Reliance on soft law instruments, limited legal certainty, and the emergence of non-tariff barriers impede the realization of a true single market, thereby hindering inclusive economic growth. Particular emphasis is placed on Indonesia’s strategic legal role through the implementation of RCEP, potential accession to CPTPP, and domestic legal reforms supporting micro, small, and medium enterprises (MSMEs). It is concluded that the future success of ASEAN’s economic integration hinges upon enhanced legal harmonization, improved compliance and enforcement mechanisms, and the development of a more binding regional legal framework aligned with the ASEAN Community Vision 2045.