ABSTRACT
The impact of the establishment of regional trading bloc (RTB) arrangement in member countries economy may come before that arrangement come into force, and known as the anticipatory effect of the establishment of RTB. This thesis tried to find out the anticipatory effect of the establishment of ASEAN Economic Community in Indonesia economy. Since ASEAN made a significant progress in economic cooperation and moving forward to the regional economic integration, it is hypothesized that the establishment of ASEAN Economic Community has an anticipatory effect on the Indonesia economy, and will be reflected on the Indonesian trade pattern toward other ASEAN countries.
Using Gravity Model and data of Trade, GDP, Population, Distance and AEC (ASEAN Economic Community) dummy variable in 8 years observation (2000 ？ 2007), it is revealed detectable effect stemming from the announcement of the establishment of ASEAN Economic Community in Indonesia Economy. The result of research finding can not be generalized to all ASEAN countries since it is only using the Indonesia economy as an object of study.
