Indonesia's Readiness Towards ASEAN Community 2015

By Shabrina Salsabila

Editor Shabrina Salsabila

BANDUNG, itb.ac.id - In order to prepare for Students Orientation (OSKM) ITB 2014, ITB Student Union (KM ITB) held Centralized Training for its prospective committee. One of centralized training programs is filled with talk show that was held on Monday (09/06/14) at the West Hall ITB. The talk show discussing the issue of the ASEAN Community with the theme 'ASEAN Community, Nation Problem or Challenge'. Talk show presented by Mohamad Faisal, PhD (Researcher at the Center of Reform on Economics (CORE) of Indonesia and Dr. Arry Bainus, MA (a lecturer at Padjadjaran University and economic observer).

ASEAN Economic Community or in economics known as the ASEAN Economic Community (AEC) is a community comprising 10 countries in Southeast Asia who are members of ASEAN for the realization of an integrated economy. Countries that are members of the AEC enforces single market system or single market is open for trading of goods, services, investment, capital and labor. AEC planned to form in 2015.

Problem or Challenge

With the enactment of AEC, each state will be integrated in the production areas to improve efficiency. Production actor's collaboration between countries will grow to create efficiencies with high value. AEC will increase the competitive value of ASEAN countries to provide products that have high quality. High quality products will choke the poor quality and over time will be left by the consumers. "For example, in West Java province is regarded as the quite good textile industry. However, pay Indonesian workers with the same quality are higher than Vietnam. Course the industry will run into Vietnam. Then in the end product will still be marketed in Indonesia," said Faisal.

Not all of the ten countries potential that joined AEC is the same, Indonesia occupies a dominant position. Indonesian dominant in terms of population (60% of the ASEAN population are citizens of Indonesia), wide area, and a large market. In keeping with the theme, the position may be a problem or challenge for the nation.

By Faisal explanation, today there are at least some economic issues that need to be addressed in Indonesia. It can be seen from its deficit trade balance of exports and imports that began in 2007 and 2008. Deficit is suspected by the regional economic problems in Indonesia. Indonesian communities still depend on exports of raw and semi-finished goods, while average of imported goods are the final product or product that has been processed. The next issue, trade in services between Indonesia and ASEAN is still a deficit. The transport sector is arguably the sector that drives the deficit. For example, Indonesian does export activities, but the services used for export activities still use foreign ships.

By the time the AEC was formed, labor competition in the ASEAN region will be wider. Thus, the demand for qualified human resources in all respects be a new obligation. According to the data, nearly 67% or two thirds of Indonesia's population only junior high school's graduates. Much compared to other countries, such as Singapore, Malaysia, and the Philippines that are 80% high school graduates and higher education.

ASEAN Political-security Community and ASEAN Socio-cultural Community

ASEAN Community not only affects the economy, with the creation of an open market will also affect the political and socio-culture of each country. For the community formed the ASEAN Political-Security Community and the ASEAN Socio-cultural Community. Political and Security Community is expected to overcome all the problems related to political and security issues in the ASEAN countries. Example, the case of boundary disputes between Indonesia and Malaysia, like the dispute of Ambalat block in the past. Social and Cultural Communities are expected to answer the problems that exist. For example, the case of a claim culture of a nation among the ASEAN countries, it will be resolved with the ASEAN Socio-cultural Community.

In this talk show, uttered a question that attracts big attention, "The existence of the AEC or the most severe monetary crisis though, our nation will continue to survive. Though sticking with parched rice. Question now is whether we have the heart to see this nation survive that way?" asked Arry to students who listen.