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Optimizing Indonesian’s Advantage to Survive in AEC

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Heading ASEAN Economic Community
Heading ASEAN Economic Community

By: Ahsan Zoelva *)

Jakarta, CIDISS – It has been almost two months since Indonesia and other ASEAN countries entering the stage called “ASEAN Economic Community” (AEC). However, along the time, there are still many people who are confused, even pessimistic with the implementation of AEC. Naturally, it is happened because there are still many people who are unfamiliar with the “true” concept of AEC. In fact, the “confusing about AEC” is compounded by the so many “myths” that is associated with AEC.

At least, there are three most popular myths associated with AEC. First, many consider that the AEC is a “free market”, in the sense of all goods and services within the ASEAN region will pass cross freely without hindrance. This assumption is wrong, because the purpose of the actual AEC is forming a “common market”, a concept is far different from the “free market” concept. Thus, the main objective is to improve the market capacity of each ASEAN member country.

The second myth is the notion that with the implementation of AEC, there will be an increase in the movement of labor, which in turn will lead to increasing competition between the labors in Indonesia. In fact, the AEC is in principle not open up employment opportunities as possible for foreign workers, due to the existing agreement that AEC only regulates professional, not labor. More specifically, there will only be five professions that could be “move freely” in the AEC, such the professional in health, construction, tourism, accounting, and surveyors sector.

The third myth is the assumption that Indonesia will lose at AEC since Indonesia has low competitiveness. Indeed, based on the Global Competitiveness Index report 2014-2015, Indonesia’s competitiveness is under Singapore, Malaysia, and Thailand. However, this fact does not ensure that Indonesia will not be able to compete in AEC. In fact, Indonesia has a number of potential and advantages of its own which, if being optimized, will make Indonesia came out as “winners” in the “AEC stage”.

One of Indonesian advantage in AEC is Indonesia always continues to exp

erience entrepreneurship’s growth in terms of quantity and capacity. It has been proven from the number Indonesian’s micro, small and medium enterprises (SMEs) that has grown from approximately 50 million units in 2007 to 56 million units in 2013, with a record of export value of Rp140 trillion to Rp200 trillion in the same period. Thus, it can be said that the entrepreneurial sector, particularly SMEs, have a great opportunity to continue to grow and develop, especially in AEC that promising a “common market” in order to improve the competitiveness of each country in ASEAN.

This opportunity absolutely must being optimized, not only by government but also the public. The public, especially young people, need to continue to foster creativity, innovation and entrepreneurial spirit, so that they can create products of quality goods and services that will ultimately improve the competitiveness of Indonesia. [AZ]

*) CIDISS Contributor

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