5 - Challenges for Building Better Transportation Infrastructure Linkages Across ASEAN: Indonesia's Perspectives Towards an Integrated Asian Economic Community

Summary

Introduction

To meet the challenges in a global marketplace, ASEAN needs to integrate its member countries and achieve a more dynamic economy, which is inclusive and sustainable. ASEAN leaders are conscious of the increasing interdependence of their economies within the region as well as the rest of the world, and hence aim to implement the ASEAN Economic Community (AEC) by 2015. This vision requires a well-connected ASEAN that will lead to a more competitive and resilient ASEAN. This is expected to be realized through ASEAN connectivity. ASEAN leaders agreed on the concept of ASEAN Connectivity during the 15th ASEAN Summit in Cha-am Hua Hin on 24 October 2009. The country leaders observed that the strategic location of ASEAN has the potential to physically anchor itself as the transportation, information and communication technology, and tourism hub of the region. The Master Plan on ASEAN Connectivity was subsequently adopted one year later by the ASEAN Heads of State at the 17th ASEAN Summit on 28 October 2010.

The Master Plan is expected to accomplish the following goals within the region: 1) enhance trade, investment, tourism, and development; 2) narrow development gaps; and 3) facilitate people-to-people contacts. Furthermore, the connectivity is expected to enhance the attractiveness of ASEAN as a foreign direct investment (FDI) destination and to encourage better integration of production and innovation networks in the region.

A well-connected ASEAN may be achieved through three kinds of connectivity, i.e. physical, institutional, and people-to-people connectivity. Physical connectivity entails an enhanced physical infrastructure (including transport infrastructure, i.e. road, rail, air, and sea linkages), while institutional connectivity refers to effective institutions, mechanisms, and processes. Finally, people-to-people connectivity is meant to empower people.

To realize ASEAN connectivity, it is important to emphasize that the development gaps among the ASEAN member countries is a major issue that needs attention and immediate action.