The
Asean Economic Community [AEC] to be effective on January 1, 2016 should be the
focus of attention of the next president. A great task was waiting ahead. A
number of national development agenda called for serious attention, among them
the AEC 2015 which was just a year ahead.
Generally
speaking there were at least four important points in the execution of MEA
2015. Firstly, Asean as a single market. Secondly, common economic development.
Thirdly, equal distribution of economy. Fourthly, strengthening of competitive
edge including the importance of building competent workface. AEC was
predicated by 10 Asean countries with total population of 600 million people.
Around
43% of Asean people lived in Indonesia. Meaning, AEC would actually place
Indonesia as a main market which was vast, either for the traffic of goods or
investments. In terms of outflow of goods, are local products ready to compete
against products of Thailand, the Philippines, Brunei Darussalam and Malaysia?
It
was noteworthy that based on data of 2012 trading between Indonesia and Vietnam
posted deficit of USD 157 million, with Thailand USD 721 million, with
Singapore deficit USD 707 million, with Malaysia USD 511 million, even with a
small country like Brunei Darussalam USD 281 million.
By
concept, AEC was extremely vast and it was not easy to decide where to begin
the preparation. To committee for AEC preparation set by the Government must
find it hard to prepare a draft for anticipating AEC 2015. Under such
circumstances it was almost certain that trade deficit with the said countries
would swell even bigger.
In
fact there was still enough time for Indonesia to make renegotiation on the key
issues whereby Indonesia could be benefited. The collaboration platform adopted
by the Europe Economy Community [MEE] was not suitable for AEC. The AEC concept
must secure decisions made by every member state. It should be sound and firm.
Here was the point that Indonesia could play the role.
Illumination
about AEC must be exercised by the Government internally in Indonesia not just
on how to penetrate the Asean market, but more important was how national
businesspeople could resist storming of goods from other countries.
With
just 2 month time before installment of the new President, it was indeed not
easy to make preparations. Each sector would need consolidation and inter
sectoral consolidation. Also it was necessary to safeguard the acceleration
process of infrastructure development whereby Indonesia could benefit from the
Asean community era, which would trigger competition.
Southeast
Asia was preparing to establish an economic community with potential to enhance
trading and capital flow, unfortunately the integration it self had the
potential to widen discrepancy. The point was that gender wise, women would
have less job opportunity than men. Ten Asean member countries would share a
common market next year.
The
integration would create 14 million additional job opportunities in 2005 where
skilled workers would be free to perform. Such was report made by the Asian
Development Bank [ADB] and International Labor Organization [ILO].
Economic
growth of the region could be jacked up to 7%. Unfortunately Indonesia was most
unlikely to be advantaged. By estimate the new job opportunities would
encompass only 1.9 million workers or 1.3% of total workers. By estimate,
around half of the highly skilled workers would work in Indonesia. While most
of the vacancy would be filled by less trained, low educated workers. The gap
means less productivity and competitiveness for Indonesia.
Most
of the job opportunities would be in the sectors of trading, construction and
transportation informal occupations mostly held by male rather than female
workers. Shifting of low and middle skilled workers would also be jack up,
hence signaling the need for protective measures for local workers.
The
Government was aware of the need for better regulation of placement for foreign
workers; and Indonesia had to step up quality of goods and services by
conducting training and accommodating more workers.
To
grab job opportunities, skill was the key factor. Applicants must have the
right skill for the right job. Although many job opportunities needed low and medium
skill, the sectors that needed high skilled workers would grow fastest.
Indonesia
was advantaged in the sectors of construction, trading, and transportation. The
question was: how to prepare a labor force that meets the requirement for high
skill. As known, Indonesia had the most numerous workworde in Asean.
Population
of the young was high in Indonesia, while in countries like Thailand and
Singapore aged people would prevail in the statistical data. Indonesia’s
domestic market was high, the young people were many, and fresh innovations
were plentiful.
Policy
making in Indonesia were flexible. Many initiatives had been taken for the
medium term. There was political will in the next Government which emphzized
priority on efforts to be biased in taking advantage from Asean Economic
Community.
For
example Indonesia applied the Minimum Wages Policy which was not done by other
countries, which means that Indonesia’s position was notably good. Besides
Indonesia was Asean’s leader in terms of population. So Indonesia’s role was
import as a whole to the region as well as for her own people.
By
next year, Indonesia would be having a competitive momentum, particularly in
economy and industry when Indonesia would be facing AEC as consequences of
regional agreements.Pursuant
to that matter, it was important for the Government to identify problems and
face challenges of making productive and excellent workers for Asean’s labor
market. Spontaneous response came from the KADIN, the Indonesian Chamber of
Commerce who had prepared 3 programs in facing AEC 2015 and also supported the
Indonesia Economic Development Expansion Program [MP3EI].
Firstly to identify need for skilled workers to support 22 economic activities in 6 economic corridors and to step up competitiveness in 12 prioritized sectors in AEC 2015.
Secondly
o facilitate standard of competence and to set up Professional Cerification
Agency [LSP] by related industrial associations.
Thirdly
to develop KADIN Training Center [KTC] for promoting development of competence based
training programs in accordance with industry need by provincial KADIN.
Furthermore KADIN made inventory of 12 prioritized sector for AEC 2015 called
free flow of skilled labor, health care, tourism. Logistics service, air travel
transport, agro-based products, electronics, fisheries, rubber-based products,
textile and apparels, automotives, and wood based products.
To embark on competition-packed AEC era, high quality huma n resources must be prepared as there were many labor intensive industry which had storage of competent workers which affected productivity especially in industry applying high-technology.
There were some basic
problems faced by Indonesia in facing MEA 2015:
One: high number of disguised unemployment
Two: low number of newcomer
entrepreneurs to speed up expansion of working opportunities.
Three: most of Indonesian
workers were uneducated workers so productivity which was why productivity was
low.
Four: Growing number of educated workers, due to mismatch
between university graduates and need for workforce.
Five: Inter-sectoral discrepancy of productivity of
workers.
Six: the informal sectors prevailed in offering job
opportunities, a sector which was not given enough attention by the Government.
Seven: unemployment in Indonesia was the highest among 10
Asean nations including joblessness among skilled workers in facing AEC 2015.
Eight: workers’ demand for minimum wages and fringe
benefits in employment.
Nine: the problem of Indonesian migrant workers [TKI] spread
out in many countries abroad.
The
next Government had to face one of the strategic agenda of AEC 2015 which
demanded hard work and to be wise and smart in preparing everything whereby to
take maximum benefit when AEC 2015 was applied per January 2016 next. (SS)
Business News - September 5, 2014
No comments:
Post a Comment