Purpose of establishing the ASEAN Economic Community (AEC) to improve the economic stability of the ASEAN region, and is expected to overcome the problems in the economy among ASEAN countries.
ASEAN is an economic force consists of 10 countries, namely Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia.
The formation of the ASEAN Economic Community (AEC) originated from the agreement ASEAN leaders in the Summit (Summit) in December 1997 in Kuala Lumpur, Malaysia. This agreement aims to improve the competitiveness of ASEAN as well as China and India can compete to attract foreign investment. Foreign capital needed to boost employment and welfare of the citizens of ASEAN.
At the next summit which took place in Bali in October 2003, ASEAN leaders declared that the establishment of the AEC in 2015.
There are several consequences of the impact of the MEA, the impact of the free flow of goods to the ASEAN countries, the impact of the free flow of services, the impact of the free flow of investment, the impact of the flow of skilled labor, and the impact of the free flow of capital.
Indonesia ready to face global competition in 2015? We should be prepared to face the competition in 2015. Indonesia and countries in Southeast Asia 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 some things that will be the focus of the AEC in 2015 that can be used as a good momentum for Indonesia.
> Southeast Asia region will be used as a unified market and production base. With the creation of a unified market and production base will make the flow of goods, services, investment, large amounts of capital, and skilled labor be no hindrance from one country to other countries in Southeast Asia.
> MEA will be formed as an economic area 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 infringement of copyright; create an efficient transport network, secure, and integrated; eliminating the Double Taxation system, and; increase trade with the online-based electronic media.
> MEA will serve as the region has equitable economic development, with a priority on Small and Medium Enterprises. Competitiveness and dynamism of small and medium enterprises 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.
> MEA will be fully integrated to the global economy. With the building of a system to improve the coordination of the member states. In addition, there will be increased participation of countries in Southeast Asia in the global supply network through pengembangkan package of technical assistance to countries less developed ASEAN members. This is done to improve the capabilities and productivity of the industry so that not only increase their participation at the 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 members therein. MEA can develop the concept of meta-national in the food supply chain, and produce a single trading bloc that can handle and negotiate with exporters and importers of non-ASEAN.
For Indonesia, the MEA will be a good opportunity because of barriers to trade will tend to be reduced even be there. This will result in increased exports, which in turn will increase Indonesia's GDP. In this case the risk of competition will appear with the number of imported goods will flow in large quantities to Indonesia, which would threaten the local industry to compete with foreign products of much higher quality. This in turn will increase the trade deficit for the State of Indonesia itself.
On the investment side, 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 and easier access to the world market. These conditions can result in exploitation risk. Indonesia still has a less binding level of regulation so as to cause large-scale exploitation action against the availability of natural resources by foreign companies into Indonesia as a country with abundant amount of natural resources compared to other countries. There is a possibility also exploitation by foreign companies can damage the ecosystem in Indonesia, while the investment regulations that exist in Indonesia is not yet 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 because 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 raise the risk of ketenagakarejaan for Indonesia. 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 foundations for Indonesia alone makes Indonesia ranked fourth in ASEAN.
With the presence of MEA this 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 risk professionals are expected to be more sensitive to fluctuations will occur in order to anticipate emerging risks appropriately. In addition, a slick collaboration between state authorities and businesses need, both physical infrastructure and social (laws and policies) needs to be addressed, as well as the need to improve the capabilities and competitiveness of the workforce and companies in Indonesia. Do not let Indonesia just be a spectator in his own country in 2015. And also more importantly do not let the natural wealth, Indonesian sovereignty compromised by other countries.
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