VITALITY OF VILLAGE UMKM IN THE ARENA OF ASEAN ECONOMIC COMMUNITY (AEC)
Abstract: A horizon of
expectation seems to be much brighter when the regional cooperation among the
Southeast Asian countries intensify due to their meeting commitment of
integration. The culmination of the regional cooperation commitment in
Southeast Asia is an agreement to become a solid community within the framework
of the Asean Community. One aim of the Asean Community is to form a joint
economic community among the countries in Southeast Asia, commonly known as the
Asean Economic Community (AEC).
AEC opens space for the flow of goods and services from ASEAN member
countries freely, including items that have been developed by Usaha Mikro Kecil
dan Menengah (UMKM) – Micro Small and Medium Enterprises. In Indonesia,
especially in Malang, UMKM provide the foundation of the regional economic
development. The implementation of AEC will slowly and surely give implications
to UMKM and regional economy, more specifically the areas with less attention
preparing for UMKM to face the Southeast Asian regional free market. It is an
early gate to determine whether the position of this proved-to-be-resilient
economic actors (read: UMKM) will be involved or will be squashed to be a
spectator when the other countries of the region make Indonesia as a new
trading arena.
This research will conduct a preliminary assessment towards the local
government’s innovation in facing the implementation of AEC, primarily that
relates to organizing UMKM at the local/village level. The purpose of this
study is to gain an understanding in greater detail in accordance with the
local government's response and strategies in Malang Raya to prepare village
UMKM in dealing with the implementation of AEC. The study also attempts to find
the initial design of strengthening the village UMKM that is adaptive to
current regional and global trade liberalization. Field research will be
conducted in Malang Regencies, Malang City, and Batu City, where all these
areas have village UMKM that are enough to contribute to the local economy.
Author: Dhanny Septimawan
Sutopo
Journal Code: jpsosiologigg160049