The Ability Of Indonesia In Facing ASEAN Economic Community Market Competition
Entering the free market of Southeast Asia in 2016, Indonesia as one of the countries member in ASEAN should
be able to compete with the other Southeast Asian countries. This study analyzes Indonesian competitive advantage
compared to other countries of Southeast Asia whichaims to provide inputs to the employers, the government and people of
Indonesia. The theories used in this study are Michael E. Porter's Diamond Model (Porter, 2010) and Dong-Sung Cho 9
Element Matrix (Dong, 2010) to analyze the competitive advantage of nations. Pre-test is done by using the model of
triangulation to get the same perception of the questions used. The method used in this research is qualitative, and collecting
data is done through in-depth interviews with respondents from various countries and professions who are expected to
represent different backgrounds and point of views. Results were analyzed using IFE (Internal Factors Evaluation) matrixand
BCG (Boston Consulting Group) matrix to determine the position of Indonesia among all of the AEC members. The results
showed that Indonesia still could not compete well in ASEAN Economic Community. Based on the Diamond model of
Michael Porter, there are four factors which form the competitive advantage of a nation, and among all of those four factors,
Indonesia only has one factor, which is not competitive enough to survive in ASEAN Economic Community.Therefore,
Indonesia shouldimprove in several aspects such associal security reform, education, security from terrorism, internet based
system and building more numbers of new ports.
Keywords— Competitive Advantage, Diamond Model, 9 Elements Matrix, IFE Matrix, BCG Matrix.