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Wednesday, September 2, 2015

Asean Economic Community, whether it is ready to compete with China and India?

Asean Economic Community, whether it is ready to compete with China and India?

Workers in Indonesia will face competition from other workers in Southeast Asia.
Competition in the labor market will increase towards the implementation of the Asean free market by the end of 2015.
This will affect many people, especially the workers engaged in the sector specific expertise.
Here are five things you need to know and anticipation in the face of the free market in Southeast Asia known as the Asean Economic Community (AEC).
What the Asean Economic Community?
More than a decade ago, ASEAN leaders agreed to establish a single market in Southeast Asia in late 2015.
This is done in order to increase the competitiveness of ASEAN as well as China and India could compete to attract foreign investment. Foreign investment in the region is needed to boost employment and improve welfare.
The establishment of a single market which is termed the Asean Economic Community (AEC) This will allow the country to sell goods and services easily into other countries across Southeast Asia so the competition will be intense.
How does it affect you?
Various professions such as medical personnel may be filled by foreign workers in 2015.
Asean Economic Community is not only open the flow of goods or services, but also the labor market professionals, such as doctors, lawyers, accountants, and others.
Special staff Minister of Manpower and Transmigration, Dita Indah Sari, told the BBC explaining that the MEA requires the elimination of rules that have plagued the recruitment of foreign labor.
"Restrictions, particularly in the labor sector professionals, are encouraged to be eliminated," he said.
"So in essence, MEA will be more opportunities for foreign workers to fill a variety of positions and professions in Indonesia were closed or minimal foreign power."
Is Indonesian workers can compete with other Southeast Asian countries?
A number of leaders of professional associations admitted quite optimistic that the skilled manpower in Indonesia is quite competitive.
Chairman of the Indonesian Advocates Association, Otto Hasibuan, for example, says that the trend is the use of foreign lawyers in Indonesia actually decreased.
Okay positions opened, the sector expanded, but the requirements were tightened. So open source is not open, free not free origin.
Dita Indah Sari
"The lawyers of us, especially young ones, is quite superior. During this time we're only language barriers. But now a lot of our members who study abroad," he said.
In the accounting sector, Chairman of the Indonesian Institute of Certified Public Accountants, Tarko Sunaryo, admits there is a concern because many young workers who have not been aware of the increasingly fierce competition.
"In addition to the lack of English proficiency, readiness they are also very dependent on the mental. Many are not ready when they compete with foreign accountants."
How Indonesia to anticipate the flow of foreign labor?
Special staff Minister of Manpower and Transmigration, Dita Indah Sari, states do not want to "cheated" and claimed to have prepared a strategy in the face of free market labor.
"Okay positions opened, the sector expanded, but the requirements were tightened. So open source is not open, independent of origin is not free," he said.
"We do not want the local workforce are actually qualified and capable, but because there are foreign workers be displaced.
A number of defined terms such as payment of Indonesian language and certifications related professional institutions in the country.
Labor demand ahead of the MEA will be higher, the ILO said.
What are the advantages MEA for the countries of Southeast Asia?
Recent research from the World Labour Organization, or ILO mentions the opening of labor markets to bring great benefits.
Besides being able to create millions of new jobs, these schemes can also improve the welfare of 600 million people living in Southeast Asia.
In 2015, the ILO specifies that the demand for professional workforce will increase by 41% or about 14 million.
While the demand for labor middle class will be up 22% or 38 million, while the labor force increased by 24% a low level, or 12 million.
But the report predicts that many companies will find less skilled employees or even false job placement because of a lack of training and professional education.


Written by: Arya Baskoro (Associate Researcher)

Are you ready to face the competition in 2015? We should be prepared to face intense competition in 2015. Indonesia and other countries in the Southeast Asia region will form an integrated region, known as the ASEAN Economic Community (AEC). MEA is a form of realization of the ultimate goal of economic integration in Southeast Asia.

There are four things that will be the focus of the AEC in 2015 that can be used as a good momentum for Indonesia. First, countries in Southeast Asia will be used as a region unified market and production base. With the creation of the unity of the market and production base will make the flow of goods, services, investment, large amounts of capital, and skilled labor becomes no barrier from one country to other countries in Southeast Asia.

Second, the MEA will be formed as an economic region with a high level of competition, which requires a policy that includes competition policy, consumer protection, Intellectual Property Rights (IPR), taxation, and E-Commerce. Thus, it can create a climate of fair competition; there is protection in the form of a network system of consumer protection agencies; prevent copyright infringement; creating a transport network that is efficient, safe, and integrated; eliminating the Double Taxation system, and; increase trade with online-based electronic media.

Third, the MEA will serve as the region has equitable economic development, with priority on Small and Medium Enterprises (SMEs). Competitiveness and dynamism of SMEs will be enhanced by facilitating their access to the latest information, market conditions, development of human resources in terms of capacity building, finance, and technology.

Fourth, the MEA will be fully integrated to the global economy. By building a system to improve coordination of the member states. In addition, there will be increased participation of countries in Southeast Asia in the global supply chain through pengembangkan package of technical assistance to countries less developed ASEAN Member. This is done to improve the ability of industry and productivity so that not only increase their participation in a regional scale, but also led the initiative to globally integrated.

Based on the ASEAN Economic Blueprint, MEA becomes very necessary to minimize the gap between ASEAN countries in terms of economic growth by increasing dependence of the members therein. MEA can develop the concept of meta-national in the food supply chain, and produce a single trading block that can handle and negotiate with the exporters and importers of non-ASEAN.

For Indonesia alone, MEA will be a good opportunity because of trade barriers will tend to diminish even be non-existent. This will result in increased exports, which in turn will increase Indonesia's GDP. On the other hand, appears a new challenge for Indonesia in the form of commodities traded homogeneity problems, for example for agricultural commodities, rubber, wood products, textiles, and electronics (Santoso 2008). In this case the risk of competition will arise with the number of imported goods will flow in large quantities to Indonesia which will threaten the local industry to compete with foreign products of a much higher quality. This in turn will increase the trade deficit for the State Indonesia alone.

On the investment side, this condition can create a climate that supports the entry of Foreign Direct Investment (FDI), which can stimulate economic growth through the development of technology, job creation, human resource development (human capital) and easier access to the world market. Nevertheless, these conditions can bring risk exploitation. Indonesia still has a level of regulation that is less binding that can cause large-scale act of exploitation in the availability of natural resources by foreign companies into Indonesia as the country with the abundant natural resources compared to other countries. There is a possibility also exploitation by foreign companies could damage the ecosystem in Indonesia, while the regulation of investment in Indonesia has not been strong enough to keep the natural conditions including the availability of natural resources contained.

From the aspect of employment, there is a tremendous opportunity for job seekers as it can be a lot of available jobs with the various needs of its diverse membership. In addition, access to go abroad in order to find the job easier even could be without any particular obstacles. MEA also be a good opportunity for entrepreneurs to find the best workers in accordance with the desired criteria. In this case may bring the risk of ketenagakarejaan for Indonesia. In terms of education and productivity Indonesia is still unable to compete with workers from Malaysia, Singapore, and Thailand as well as the industrial foundation for Indonesia alone makes Indonesia ranks fourth in ASEAN (Republika Online, 2013).

With the presence of this MEA event, Indonesia has the opportunity to take advantage of economies of scale in the country as a base gain. However, Indonesia still has many challenges and risks that would arise if the MEA has been implemented. Therefore, the professional risk is expected to be more sensitive to the fluctuations which will occur in order to anticipate emerging risks appropriately. In addition, a slick collaboration between the state authorities and businesses is needed, both physical infrastructure and social (laws and policies) needs to be addressed, as well as the need for increased capacity and competitiveness of the workforce and companies in Indonesia. Do not let Indonesia only be a spectator in his own country in 2015.

Definition and characteristics of the ASEAN Economic Community (AEC)
Heroine Rahayu 7 Comments Asean, Organizations
Definition and characteristics of the ASEAN Economic Community (AEC). MEA is a form of economic integration of ASEAN in terms of the system perdagaangan freely between countries asean. Indonesia and nine other ASEAN member countries have agreed agreement ASEAN Economic Community (AEC) or the ASEAN Economic Community (AEC).

Definition and characteristics of the ASEAN Economic Community (AEC)
Definition and characteristics of the ASEAN Economic Community (AEC)

At the summit in Kuala Lumpur in December 1997 ASEAN Leaders decided to transform ASEAN into a region that is stable, prosperous and highly competitive with equitable economic development, and reduce poverty and socio-economic disparities (ASEAN Vision 2020).

At the Bali Summit in October 2003, the ASEAN leaders stated that the ASEAN Economic Community (AEC) will be the goal of regional economic integration in 2020, the ASEAN Security Community and ASEAN Socio-Cultural Community two inseparable pillars of the ASEAN Community. All parties are expected to work are strong in building the ASEAN Community by 2020.

Furthermore, ASEAN Economic Ministers' Meeting held in August 2006 in Kuala Lumpur, Malaysia, agreed to advance the ASEAN Economic Community (AEC) with clear targets and timetables for implementation.

At the ASEAN Summit 12 in January 2007, the Leaders reiterated their strong commitment to accelerate the establishment of ASEAN Community in 2015 proposed in the ASEAN Vision 2020 and the ASEAN Concord II, and signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015. In Specifically, the leaders agreed to accelerate the establishment of the ASEAN Economic Community in 2015 and to transform ASEAN into a region with free trade of goods, services, investment, skilled labor, and freer flow of capital.

And the characteristic element of the ASEAN Economic Community (AEC)
ASEAN Economic Community (AEC) is a realization of the ultimate goal of economic integration adopted in Vision 2020, which is based on the convergence of the interests of the member countries of ASEAN to deepen and broaden economic integration through existing and new initiatives with a clear time limit. in establishing the ASEAN Economic Community (AEC), ASEAN must act in accordance with the principles of an open, outward-looking, inclusive and market-oriented economy consistent with multilateral rules and compliance with the system for compliance and effective implementation of the commitment to a rules-based economy.

ASEAN Economic Community (AEC) will establish ASEAN as a single market and production base to make ASEAN a more dynamic and competitive with the mechanisms and measures to strengthen the implementation of existing and new economic initiatives; accelerate regional integration in the priority sectors; facilitating the movement of business, skilled labor and talents; and strengthening institutional mechanisms of ASEAN. As a first step to realize the ASEAN Economic Community,

At the same time, the ASEAN Economic Community (AEC) will address the development gap and accelerate the integration of the countries of Cambodia, Laos, Myanmar and VietNam through the Initiative for ASEAN Integration and other regional initiatives.
The cooperation forms are:
Human resource development and capacity building;
Recognition of professional qualifications;
Closer consultation on macroeconomic and financial policies;
Trade financing measures;
Improve infrastructure
The development of electronic transactions through e-ASEAN;
Integrating the industry throughout the region to promote regional sources;
Increase the involvement of the private sector to establish the ASEAN Economic Community (AEC).
Importance to ASEAN's external trade and the need for ASEAN Community as a whole to keep looking forward,
The main characteristics of the ASEAN Economic Community (AEC):
Single market and production base,
Competitive economic region,
Region of equitable economic development
Region fully integrated into the global economy.
These characteristics are related to each other strongly. By Incorporating elements required of each characteristic and should ensure consistency and coherence of the elements as well as the implementation of appropriate and mutually coordinating among relevant stakeholders.

Regarding the Single Market Definition Based Production

Regarding the Single Market Definition Based on Production. A single market and production base ASEAN consists of five main elements that influence terhadao ASEAN Economic Community (AEC):
Regarding the Single Market Definition Based Production

1. Traffic flow of goods
Goods traffic. Free flow of goods is one of the primary means of which the object of a single market and production base to be achieved. Through the ASEAN Free Trade Area (AFTA), ASEAN has achieved significant progress in eliminating tariffs. However, goods traffic will require not only zero tariffs but in the elimination of non-tariff barriers as well. In addition, the main part of others that will facilitate the flow of goods is independently facilitation measures other trades such as integrating customs procedures, forms a junction ASEAN Single Window, continuously improve Rates Common Effective Preferential (CEPT) Rules of Origin as Tata Operational Approval way, and the harmonization of standards and compliance procedures.

2. Freedom of current service
The free flow of trade in services is one important element in realizing Economy ASEAN Community, where there are no restrictions to the service supplier in providing services and in establishing companies across national borders in the Asean countries, some services sectors such as financial services and air transport is done by agencies of Ministers respectively.

3. Flow-free investment
An investment regime that is free and open is key to enhancing ASEAN's competitiveness in attracting foreign direct investment and investment between ASEAN countries. Continuous inflows and new investments will promote and ensure the dynamic development of the ASEAN economies.

4. Flow freer capital
Strengthen Capital Market Development ASEA. Reaching for greater harmonization in standards of capital market in ASEAN in areas that offer debt rules, disclosure requirements and conditions as well as the distribution Easing the rules are interrelated.

5. Freedom flow of trained manpower / Skilled

The free flow of trained manpower / Skilled. Allowing to facilitate the entrance to the movement of natural persons involved in the trade in goods, services, and investment, in accordance with the applicable provisions of the country of destination, ASEAN To Work in accordance with their respective skills.

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