Paper Of Asean Economic Community

Subscribe

CHAPTER
PRELIMINARY

1.1 Background Issues
              Are you ready to face the competition in 2015? We should be prepared to face the competition in 2015. Indonesia and the industrial countries in the Southeast Asia region will form an integrated neighborhood known as the ASEAN Economic Community (AEC). MEA is a form of realization of the ultimate goal of economic industry in Southeast Asia.
              There are four things that will be the AEC industry in 2015 which can be used as a good momentum for Indonesia, namely:
             First, ndust-state in Southeast Asia will be used as a unified region market and production base. With the creation of the unity of the market and production base will make the flow of goods, services, investments, large amounts of capital, and skilled labor becomes no barrier from one ndust ndust to other Southeast Asian region.
             Second, the MEA will be established 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 ndust network of consumer protection agencies; prevent copyright infringement; creating an efficient transport network, secure, and integrated; eliminating ndust Double Taxation, 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 improved by facilitating their access to the latest information, market conditions, the 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 an industry to improve the coordination of 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 members.
            One is done to improve the industry's ability and productivity so that not only enhancing their participation in a regional scale, but also led the initiative to globally integrated.
            From the above, it is in this paper the author will discuss "Opportunities, challenges and risks for Indonesia with the Asean Economic Community".
1.2 Problem Formulation
           As for the issues to be discussed in this paper are the opportunities, challenges and risks for Indonesia with the ASEAN Economic Community. This issue is taken for their ASEAN free market in Indonesia. In this paper, the authors formulate the problem as follows:
1. What are the opportunities and challenges that we can take in the MEA program?
2. What are the risk will be borne Indonesia in the face of MEA?
1.3 Purpose Papers
From the formulation of the above problems, the general purpose of this paper is to explain the opportunities, challenges, and risks faced by Indonesia in facing the ASEAN Economic Community that the community is able to face the global market competition. The purpose of this paper is to know clearly about:
1. Opportunities and challenges that can be used by communities in MEA.
2. Risks facing Indonesia today MEA.

CHAPTER II
DISCUSSION

2.1 Basis Theory
                Asean Economic Community is the regional integration of ASEAN in the field of economy. Formation of MEA is based on four pillars. First, make ASEAN as a single market and production center. Second, being a competitive economic region. Third, create a balanced economic growth, and the last pillar is economic integration into global. Unifacation is intended to improve the competitiveness of the region, promote economic growth, reduce poverty and to improve the living standards of ASEAN. This integration is expected to build the ASEAN economies as well as directing the ASEAN as the backbone of the Asian economy. With the start of MEA, each ASEAN member states should merge territorial limit in a free market. MEA will consolidate the market every country in the region into a single market. As the single market, the flow of goods and services that are free is a necessity. In addition to the countries of the region are also required to free up the flow of investment, capital and skilled labor.
            MEA is a deal that has a tremendous goal but some parties are also concerned about this deal. Free flow of goods, services, investment, capital and labor are inevitably brings its own concerns for some parties. In this case the potential domestic market and jobs are at stake. Just food for thought, the index of global competitiveness of Indonesia in 2013-2014 (rank 38), which is far below Singapore (2), Malaysia (24), Brunei Darussalam (26) and one rank below Thailand (37). On the other hand, let's see Indonesia's population of nearly 40% of the population of ASEAN. A large market but not supported maximum competitiveness. Indonesia not to repeat the impact of the ASEAN-China free trade. Expect an increase in the economy instead flooded with Chinese products.

2.2. Opportunities and challenges of Indonesia in the activities of the ASEAN Economic Community

1. On the trade side

According to Santoso in 2008. For Indonesia alone, MEA will be a good opportunity for trade barriers will tend to diminish even be non-existent. This will impact on increasing exports, which in turn will increase the GDP of Indonesia. On the other hand, emerging new challenges for Indonesia in the form of homogeneity problems commodity bought and sold, for example, for agricultural commodities, rubber, wood products, textiles, and electronics.

2. On Side Investments

This condition can create a climate that supports entry of Foreign Direct Investment (FDI), which can stimulate economic growth through technology development, job creation, human resource development (human capital) and easier access to the world market.

3. Aspects Employment
There is a tremendous opportunity for job seekers because it can be a lot of jobs available with the various needs of a diverse membership. In addition, access to go abroad in search of jobs easier and 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.

Recent research from the World Labor Organization, or ILO mentions the opening of labor markets to bring great benefits. Be This condition can create a climate that supports entry of Foreign Direct Investment (FDI), which can stimulate economic growth through technology development, job creation, human resource development (human capital) and easier access to the world market.sides being able to create millions of new jobs, this scheme 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 middle-class workers will rise 22% or 38 million, while the lower level of labor increased by 24% or 12 million. But the report predicts that many companies will find their employees are less skilled or even incorrect placement due to a lack of training and professional education. Thus, the authors concluded that the opportunities and challenges of Indonesia in the ASEAN Economic Citizens are enormous. Indonesia can obtain several advantages including increased economic growth. However, it should be followed by improvement in the quality of human resources, and utilization of natural resources as much as possible.
2.3. Risks facing Indonesia today MEA

1.      The competition risk will appear with the number of imported goods will flow in large quantities to Indonesia, which will threaten the local industry in competing with foreign products of much higher quality. This in turn will increase the trade deficit for the State

2.      The risk with large-scale exploitation of 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 of 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.

The employment of risk in terms of education and productivity of Indonesia is still unable to compete with workers coming from Malaysia, Singapore, and Thailand as well as the industrial foundation for Indonesia alone makes Indonesia is ranked fourth in ASEAN.
            According to Media Indonesia, Thursday, March 27, 2014, with the market for goods and services freely would result in foreign workers to easily enter and work in Indonesia resulting labor competition increasingly fierce in the field of employment.
           When MEA applies, in the field of employment there are 8 (eight) professions who have agreed to be opened, ie engineers, architects, nurses, surveyors, energy tourism, medical practitioners, dentists, and accountants This is what will be a new test for the world's problems employment in Indonesia because each country must have been prepared in ketanagakerjaannya in the face of the MEA. How about Indonesia? In order for national security by keeping in view the opportunities and face the challenges of the Indonesian nation in the era of the MEA will be, particularly on the readiness of the Indonesian labor indispensable concrete steps in order to compete against the foreign worker.

 On the other hand, with the MEA, it will spur the growth of investment from both outside and inside the country so that it will create new job opportunities. In addition, Indonesia will be able to find employment in other ASEAN countries with rules is relatively much easier with the MEA is due to the delay in the national economy at this time and based on data from the Central Statistics Agency (BPS), the number of unemployed per February 2014 compared to February 2013 reduced only 50,000 people. In fact, when you see the number pengguran last three years, by February 2013, unemployment 440,000 people, while in February 2012 decreased 510,000 people, and by February 2011 decreased by 410,000 persons (Koran Sindo, Tuesday, May 6, 2014). Thus, the presence of MEA is expected to reduce unemployment because it will create new jobs and absorb the existing labor force at this time to enter into the job market.
            For that, the authors concluded that the risks that will arise in the AEC is the competition of local industry with foreign industries, exploitation of natural resources by foreign countries, as well as local labor competition with foreign workers are more qualified.
2.4. How to face the ASEAN Economic Community
            Many ways at once in preparation for the ASEAN Economic Community (AEC) in 2015. It is also a challenge for the true mindset and spirit of the government and economic actors Indonesia is still as usual.

1.      According to the economist of the Indonesian Islamic University (UII) in Yogyakarta Edy Suandi Hamid, governments and economic actors should be more offensive the ASEAN Economic Community in 2015 by expanding the market for goods, services, capital, investment, and labor markets. The presence of MEA should be seen as an increase in the Indonesian market to more than double, from 250 million to 600 million, "he said. With the mindset and spirit as it was, he hoped Indonesia could reap optimum benefit from MEA. The economy must be driven faster growing , expansive, and competitive, not vice versa.

2.      According to the senior diplomat Makarin Wibisono also reminded that in the face of AEC 2015, Indonesia needs to pay attention to the growth and development of the services sector. "The liberalization of the services market would be beneficial for Indonesia in the dynamics of MEA," said Makarim seminar Indonesia-China Friendship Association in Jakarta, some time ago. According to him, the liberalization of services market the benefit of enhancing the quality and determine the cost of fairness for workers so that later increase the competitiveness in the industrial sector. Efficient services market, according to Makarim, will increase consumer choice, productivity, competition, and the opportunities for development of new services sectors. "If there is inefficiency, the negative impact on productivity, innovation, technology distribution, and hinder the achievement of optimal growth," said Indonesian Ambassador to the United Nations (2004--2007) this.

3.      According to the rector of the University of March (Solo) Ravik Karsidi one UNS preparation is to prepare human resources (HR) with the hard skills and soft skills. In terms of hard skills, UNS prepare the curriculum so that students are able to compete with graduates of foreign universities. Meanwhile, in terms of soft skills, UNS equip its students with spiritual and mental preparation through training spiritual quotient (SQ). The program is followed by soft skills training at the faculty level. Among the training it is about leadership, communication and language skills. So can the authors conclude, to address the challenges and risks that might occur in the AEC can be done to equip themselves with knowledge, instill a love of the product in the country, as well as sharpen

There are 6 Ways Facing the Asean Economic Community (AEC):

1.      Human Resources (HR)

HR must be more Kratif, innovative, fast and able to compete. Indonesia's human resources ditantanguntuk more competent in dealing with the free market MEA.

2.      Infrastructure
These points need to be prepared to support the competent human resources. Without good infrastructure and memadahi, HR performance will be hampered.

3.      Language
Tools for conveying information is the language. Therefore, we are required to bias a foreign language, at least in English.

4.      Product Quality
No doubt, a quality product will become widely coveted. Without a good product, it looks like it will be difficult to compete. In the MEA, the competition has been ascertained very tight.

5.       Product Quantity
If the quality of the product are met, lived thinking about the quantity of the product. How many products are produced bias, it should also be prepared in a free market mengahapi MEA.

6.      Sustainable Products
If the product quality and quantity requirements are met, the task selnjutnya is how the product or on going continous. Why? Because of the absence of continuity, we're going out of business because consumers immediately switch to another trader.

2.5. America Economic System in The World Economy
            America is one of the richest countries in the world that has abundant natural resources, well-developed infrastructure and high productivity. Income per capita (KKB) is the sixth highest in the world. Almost all countries have enjoyed working with countries America good sam dal am economic, military and education. Countries involved in World War I and II does have a strong influence in the world, especially in the economic and political fields. America's economy is an important milestone in the economic America, America States with all the important influence throughout the world makes the country a role model and a guide for other countries. In the economic field, America association adheres to the capitalist system. Economic associations America is one of the most important in the world.  Because the economy is very strong and many other countries make America States currency (dollar) as a measure of the value of its currency. This means that the exchange rate of the currency of a country depends on the value of money America.

CHAPTER III
COVER

3.1. Conclusion
        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, the right 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 to increase the capability and competitiveness of the workforce and companies in Indonesia. Do not let Indonesia just be spectators in their own country in 2015.
3.2. Suggestion
In accordance with the above conclusions, the authors formulate suggestions in this paper as follows:
1. Should the government to disseminate to the public about the program of the ASEAN Economic Community.
2. Governments pay more attention to SMEs in order to compete with the international market.

BIBLIOGRAPHY

1. http://www.crmsindonesia.org/node/624 downloaded on 14 December 2014
2. http://ekonomi.kabo.biz/2014/08/masyarakat-ekonomi-asean-mea.html downloaded on 14 December 2014
3. http://www.pikiran-rakyat.com/node/303163 downloaded on 14 December 2014
4. http://news.okezone.com/read/2014/09/26/373/1044892/cara-uns-bersiap-hadapi-mea-2015 downloaded on 14 December 2014