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The Potential Development Effect of ASEAN Connectivity: the Case of Riau Corridor

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The Potential Development Effect of ASEAN Connectivity: the Case of Riau Corridor YASIR, et al. A ModelMIMBAR of Communication, Vol. 33, toNo. Empower 2nd (December, Fisherman 2017) Community pp 341-349 in Bengkalis Regency The Potential Development Effect of ASEAN Connectivity: The Case of Riau Corridor ADIWAN FAHLAN ARITENANG Regional and City Planning, Institut Teknologi Bandung, Jl. Ganesha No.10, Bandung, Indonesia email: [email protected] Abstract. The implementation of Masterplan on ASEAN Connectivity (MPAC), especially on transportation and connectivity, includes plan to connect the member countries. This paper examined the issues and potential effects of ASEAN Connectivity in Indonesia. The paper conducted qualitative analysis on literature study, policy content analysis, and interviews allowing detail information on the MPAC implementation in Indonesia. The paper findings are as follows; (i) The lack of MPAC implementation at both ASEAN and Indonesia levels. The ASEAN lacks a designated authority and leadership to carry MPAC forward the masterplan, whilst in Indonesia there is no institution to lead the MPAC delivery. (ii) The important role of a leading institution in Indonesian government is to define and determine the strategic projects with higher value added. The paper concludes that the national government should regulate and lead the MPAC projects to ensure regional-wide connectivity with ASEAN, whilst at the same time integrate local development in Indonesia. Keywords: indonesia, ASEAN connectivity, regional development Introduction MPAC remains to be limited in Indonesia since 2010 to 2015. For instance, in the physical The vision of ASEAN Leaders to build connectivity, the projects are dominantly an ASEAN Community by 2015 calls for well- at the feasibility study (FS) stage including connected ASEAN member countries that Sunda Straits Bridge (SSB), the Singapore- will contribute towards a more competitive Kunming Rail Link (SKRL) to Surabaya and and resilient ASEAN, as it will bring people, Roll-On/Roll-Of (RO-RO) development in goods, services and capital closer together. Indonesia. In the institutional connectivity, Enhanced ASEAN connectivity is essential to Indonesia has generally ratified the protocols; achieve the ASEAN community’s economic however, the implementation should be growth aspirations. monitored. This includes The Facilitation The MPAC is considered as a stepping of Inter-State Transport (AFAFIST) and stage on building the connectivity of physical, “The Facilitation of Multimodal Transport institutional and people mobility that is crucial (AFAMT) that have not been ratified, and The to accelerate integrated ASEAN market through Facilitation of Goods in Transit (AFAFGIT) the ASEAN Economic Community (AEC) that has only been six protocols ratified by (Tongzon and Cheong, 2014). Considering its Indonesia. Whilst the ASEAN Single Shipping strategic geographical location, there will be Market and ASEAN Single Aviation Market much to gain from two of ASEAN’s flagship remains at the discussion stage. transport infrastructure projects, the ASEAN Thus, this paper aims to explore issues Highway Network (AHN) and the Singapore - and potential role of ASEAN Connectivity Kunming Rail Link (SKRL) for Indonesia. implementation in Indonesia under the MPAC Despite many construction and plans. This paper relies on formal documents development plans, the implementation of such as MPAC, national RPJM (Medium-Term Received: June 02, 2017, Revision: September 31, 2017, Accepted: December 15, 2017 Print ISSN: 0215-8175; Online ISSN: 2303-2499. DOI: http://dx.doi.org/10.29313/mimbar.v33i2.2590.341-349 Accredited B based on the decree No.040/P/2014, valid on February, 18, 2014 until February, 18, 2019. Indexed by DOAJ, Sinta, IPI 341 ADIWAN FAHLAN ARITENANG. The Potential Development Effect of ASEAN Connectivity: The Case of Riau... Development Plan) 2015-2019, and the The connectivity will not only reduce business provincial and municipality RPJM. The paper transaction cost, time and travel but also conducts qualitative analysis on literature connects among cores and between the core study, policy content analysis, and interviews and peripheral parts of ASEAN to accelerate allowing detail information on the MPAC growth in the region. As such, the MPAC implementation in Indonesia. integrates aims of ASEAN development; first, it aims to consolidate three existing The paper is structured as follows: pillars of ASEAN (political-security, economic, the following section revisits the MPAC, and socio-cultural) to achieve the goals of followed by section three which examines ASEAN Community and second, to coordinate MPAC implementation progress and issues in infrastructure system to integrate physical, Indonesia. In section four the paper examines institutional and people-to-people link within the potential of MPAC projects implementation as well as outside the region (Abidin and Rosli, in the Riau corridor. The last section discusses 2013, p. 153). the paper conclusion. In the MPAC, there are 125 measures which comprise of 55 physicals, 50 institutional Research Method and 20 people-to-people connectivity measures. The assessment of MPAC This paper employs two research implementation by the ASEAN Secretariat methodologies. First, the content analysis of shows that 96 are due for completion by 2015, various law, regulations, and development nine are due to be completed after 2015, while paper published by Indonesian government no specific timeline is given for 20 measures. and ASEAN Secretariat. This analysis provides background and current update progress of ASEAN Connectivity in Indonesia. Second, the paper also conducts interviews with many stakeholders in the development of ASEAN Connectivity. This allows in-depth information and analysis from competent and authorized government officials regarding the ASEAN Connectivity. Among stakeholders that were included in this survey were BAPPENAS, Ministry of Trade, Ministry of Transportation, and Ministry of Public Works. This comprehensive data gathering and analysis ensure the paper provides an accurate analysis of the current situation of MPAC and its potential role to support Indonesia development. Figure 1. Interaction Between ASEAN Connectivity and ASEAN Community ASEAN Connectivity The connectivity has been viewed as an Until early 2015, 22 measures have important issue related to global economic been completed, 55 measures have been growth. The growing countries such as Brazil, assessed and likely to be completed by 2015 Russia, India, China, South Africa (BRICS) as substantive progress has been achieved, economies are suggested to have connectivity 19 measures are expected to be completed related issues including basic access to after 2015 because the implementation plan infrastructure, lack of integration between put in place will go beyond 2015. For MPAC transport types, and over-dependence on measures due by 2015 and without timelines, road transport that impinging domestic it was estimated that 65% of the measures market access which are likely to accentuate (or 74 measures) would be completed by these challenges (Coe, 2014). 2015. Out of the 74 measures that were or are expected to be completed by 2015, 26 In ASEAN, the spirit of MPAC is to measures are in the physical connectivity achieve integration in the region for all dimension, 32 in institutional connectivity, dimensions through physical, institutional, and 16 in people-to-people connectivity as and personal connectivity (Das, 2013) (Fig.1). illustrated in Table 2. 342 ISSN 0215-8175 | EISSN 2303-2499 MIMBAR, Vol. 33, No. 2nd (December, 2017), pp. 341-349 Table 1 leads to missing links largely in Thailand Prospective Assessment of and Cambodia, Thailand and Myanmar, and Implementing MPAC Measures by 2015 between Cambodia and Vietnam. Currently, the project is only operated in Singapore, Mea- Measures sures Malaysia, and Thailand (Chin, 2012). Measures Assessment beyond without Total by 2015 2015 time- The establishment of the ASEAN lines Broadband Corridor (ABC) has been completed Completed 17 0 5 22 following the ASEAN ICT Masterplan 2015 Mid- Likely to Term Review. ASEAN Member States (AMS) be Com- 41 1 11 53 is currently deploying one or more high- pleted speed national broadband network backbone Expected 15 4 3 22 beyond 2015. The West Kalimantan– Sarawak power interconnection project is Unlikely to expected to be commercially operational be Com- 19 2 1 22 pleted in 2015, but the implementation of other Not Yet energy interconnection projects under the 3 0 0 3 Started ASEAN Power Grid and the Trans-ASEAN Not Gas Pipelines face delays due to resource 1 2 0 3 Prioritised constraints, lack of commercial viability of the Total 96 9 20 125 projects, challenging terrain, and technical challenges. Source: Summary assessment of MPAC implementation Institutional Connectivity: While efforts as per February 26th 2015 to operationalise the three transport facilitation agreements of ASEAN Framework Agreement Table 2 Prospective Assessment of MPAC on the Facilitation of Goods in Transit Measures to be completed by 2015 in (AFAFGIT), ASEAN Framework Agreement terms of Physical, Institutional and on the Facilitation on Inter-State Transport People-to-People Connectivity (AFAFIST) and ASEAN Framework Agreement on Multimodal Transport (AFAMT) are currently Measures Connectivity Measures ongoing, completion of the relevant protocols without Total Dimension by 2015 to AFAFGIT and the ratification of agreements timelines and their protocols remain pending. Both the Physical 16 10 26
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