Thursday, 4 July 2013

MANAGING ASEAN


              
The whole elements in the country need to welcome positively program of 15 state-owned enterprises (BUMN) planning to expand business to Myanmar. State Minister for state-owned Enterprises Dahlan Iskan said recently that the state companies would start to expand business this year through investment or business consultant in Myanmar.
               
The plan should be called as a program, an intention already prepared thoroughly and measurably so as to be able to meet the target, to differentiate it from only a will in the heart. If the program really materialized, Indonesia’s state enterprises start an important step to demonstrate their power and capability to International communities. If state companies have so far been rather business entity constituting home champion and partly treated as dairy cow by the ruler, the people, starting this year, want to see the state representative to hoist state flag and corporate banner abroad, minimally in Southeast Asia.
               
ASEAN is increasingly considered in global economy. It’s attributable to not only huge population (around 600 million) but also capability of the region to record good economic growth even though global economy is in the state of crisis. Especially for Indonesia, the economic growth rate exceeding six percent in the last several years constitutes the best record achieved by ASEAN member countries. These all become elements strengthening the position of ASAN and Indonesia, in particular in global economy.
               
Giant companies in ASEAN have prepared to reap profit from ASEAN Market. Air Asia in an example; The Malaysia-based airliner has asserted its commitment to eyeing ASEAN market having a total population of over a half of billion. Flight route is extended to various regions, including East Indonesia Region.
               
We chose the world “Management” for the title of this article because of reasons. Firstly, ASEAN would become an economic community saving extraordinary potentials: huge population, rising purchasing-power and abundant natural resources. In this context, it’s the right time for regional companies to play greater role in regional economic dynamics. Secondly, ASEAN also constitutes a political community bound by the same past, even the same future expectations. In addition, in certain cases, it constitutes a historic community having root traceable up to hundreds of years before. These all constitute basic capital for whatever entity, including Indonesian companies (not only BUMN) to expand wing to all over the region.
               
Moreover, managing is a constructive effort to ascertain developments of economy, politics and regional security simultaneously. Here, sophisticated diplomacy is needed. Relations between Indonesia and Malaysia frequently heating the two counties are mutually needing, related to overseas Indonesian worker, for instance. Economic diplomacy must become important part of political diplomacy between the two countries.
               
Our interest in ASEAN is related to not only economy. As the third largest democratic state in the world, democratization of ASEAN, mainly Myanmar, constitutes a political task which must be taken by Indonesia because the democratization could contribute political and economic benefits and open opportunity for BUMN to play role.

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