Monday, 2 December 2013


The government is mapping and strengthening the national industrial services sector in order to face the implementation of the ASEAN  Economic  Community  (AEC)  2015.  Indonesian transaction in the service sector,  especially in the field  of  labor, is still not satisfactory.  In fact, the service sector contribution to trade is now very substantial. Compared to India, Thailand, and the Philippines, these countries are very strong in the fields of banking, management training, and finance. Because the workers there are given sufficient training to be competitive.

Agus Tjahajana, Director General of International Industry Cooperation at the Ministry of Industry, in jakarta on Monday  (November 18),  said that the Ministry of Industry is to record the advantages and disadvantages of the national industrial services sector.  To improve the national services sector. To improve the national service sector, the government will make a standard of competence in the service industry. However, it will be done by the resepective industry organizations.

What must be considered, said  Agus, is the free flow of labor when AEC was enacted.  It means that the liberalized services subsectors were freely entered by foreign workers from ASEAN. According to Agus, in the ASEAN agreement,  some industrial services sectors will be liberalized.  In other words, employment in the liberalized industrial services sector can move freely between countries in ASEAN. “ We will strengthen the service sector, so that we can compete with other countries in the ASEAN free market ”, Agus said.

In addition, said Agus, the government also prioritizes nine industry sectors to be developed in order to fill the ASEAN market. He explained that it was a preparatory step in dealing with the implementation of AEC 2015. He mentioned that the priority sectors include agro-based industries  (palm oil, cocoa, rubber),  processed fish products industry, textile industry, footwear industry, leather and leather goods, furniture, food and beverage industries, fertilizer and petrochemical industries, machinery and equipment as well as basic metal industries, iron and steel.

In addition, he said, the government also set seven priority industries to be developed in order to secure the domestic market, namely: automotive industry, electronics industry, cement industry, clothing industry, footwear industry, food and beverage industry as well as furniture.

Some cross-sectoral steps and policies to face AEC 2015 were, amongst others, intensifying AEC socialization to industry stakeholders, proposing acceleration of implementation of anti-dumping and safeguard measures for certain import products, adding laboratory test facilities and improving human resource competence, preparing Indonesian National Occupational Competency Standards (SKKNI) in each industrial sector, and strengthening SMEs and development of new industrial entrepreneurs.

Meanwhile, Chairman of the Masters Program in Planning and Public Policy (PNPM)  of the Faculty of Economics, University of Indonesia, Telisa Falianty Aulia, said that the services industry is classified as a vulnerable sector in relation to the AEC 2015. To that end, the government should immediately strengthen the foundations of national services industry to address the implementation of AEC in 2015.

He admitted that Indonesia’a tourism service sector is still inferior to an average of other ASEAN countries, especially when viewed from the availability of infrastructure and adequate transportation system. In addition to the services sector, he also underlined the readiness of Indonesia in the financial sector and professional workforce. Along with Bank Indonesia policy to raise its benchmark rate, he concerned that it could lose the competitive side of Indonesian banks. Not less important, AEC 2015 will make the free mobilization of foreign workers in Indonesia which would threaten the position of the local workers. 

Business News - November 20, 2013

No comments: