BUSINESS PLAYERS ASKED TO PREPARE FOR AEC 2015

Time files. Before you knew it, 2015 was approaching. Meaning, just one year ahaead before the ASEAN Economic Community was in effect. How ready was the national industry in anticipating AEC? Was the national industry ready for it? There were pro and contra opinions in regard to the economic integration concept. Some claimed to be ready, some were far from being ready due to various factors.

AEC 2015, like it or not, was already signed and would pose as great challenge to national industry. In AEC, Asean products would storm Indonesia’s market, not just goods but also services, i.e. foreign workers would grab job opportunities in the local labor market. Don’t be surprised if soon housemaid positions were filled by Filipino workers. Goods and services used by Government institutions should be watched on. A high degree of nationalism was called for to face the condition, or else Indonesia would be spectators in their own territory in labor, trading and industry.

In view of the above, the Ministry of Industry again reminded industry circles to prepare themselves to face AEC 2005 as the market would be invaded by imported products. Secretary General of the Ministry of Industry, Anshary Bukhari stated on Friday [6/12] that AEC 2015 would pose as challenge to Indonesia. “We expect businessplayers to be ready for the competition, because if we were not ready we would be nothing but a market for them.” Ansari remarked.

However, Ansari admitted that AEC 2015 offered opportunities to Indonesia to expand market for national products to the international market. AEC would also draw foreign investors to invest in Indonesia whereby they could set up joint venture companies to ease inflow of imported raw materials for the local industry. In anticipating the AEC 2015, the Government had prioritized some industrial sectors to be developed, among others: agro based industry [CPO, cacao, rubber] abd processed fish products, textile and textile products, footwear, and leather goods. He underscored the need to strengthen regulations, tariff, road infra structure and harbor management.

In tandem with the above, Ansari said that a number of effort to strengthen competitiveness must be exercised toward AEC 2015, including: minimizing of capital expenses, energy cost, and logistics expenses. Besides also assurance of raw materials supply, control on illegal imported products and maximizing consumption of domestic products. In the long run, it was also necessary to promote industry’s supporting factors, develop human resources, R&D development and development of industry.

Meanwhile, Deputy Secretary General of the Indonesian Businessman Association [Apindo] Franky Sibarani disclosed that the Government must focus effort on reforming and strengthening national competitiveness of the national industry toward AEC 2015. According to Franky, the national industry was rated as ready to face AEC 2015 which was unlimited by tariff. Besides the said sectors, the textile industry, especially garments, fishery, wood, rubber, electronics, agro-based products including CPO, and IT, Indonesia was not ready to compete. 

Business News - December 11, 2013