This paper examines the interrelationship between the success of regional economic development with its external regions by requiring to create market integration of the main commodities production. The occurrence of market integration is one of the necessities for the creation of economic agglomerations in the development area. The research approach method used is a regional economic analysis approach. Trade integration is measured using the Grubel Lloyd Index. Research results show that the rubber economy market in West Sumatra has been cointegrated with the economic corridors of Sumatra and ASEAN countries. The market integration of the rubber economy has been captured with the Grubel-Lloyd index which successfully explains the interrelationships between rubber exports and imports with ASEAN countries all this time. Keywords-market integration; rubber market; intra industry trade of rubber1st Social and Humaniora Research Symposium (SoRes 2018)

The main focus of this research is to analyse the integration of Indonesia's rubber trade with countries in the ASEAN region and how this trade integration affects the convergence of development. The analysis method used is the principal analysis method that measures the integration of Indonesia's rubber trade with the ASEAN region, and the fixed effect method approach to examine the impact of trade integration on regional economic development convergence. The results showed that the greater integration of Indonesia's rubber trade with ASEAN countries was marked by the principal value of its component analysis, which grew from 1989 to 2017. Increased integration of this rubber trade with the ASEAN region is also very dependent on regional and global economic conditions, when regional and global economies experience a decline, the intensity of Indonesia's rubber trade also fluctuates towards decreasing. Changes in economic progress shown by changes in the value of GDP greatly affect the strength of integration of Indonesia's rubber trade with the country concerned, changes in the value of GDP of rubber export destination countries have led to the convergence of Indonesia's economy with Singapore, Thailand and Vietnam, and experienced divergence with Malaysia and the Philippines.