Wednesday, 29 January 2014

AEC MUST HAVE ENERGIZING IMPACT ON DOMESTIC SMAL BUSINESS



Toward implementation of ASEAN Economic Community [AEC] in 2015, Indonesian marketplayers were consolidating. With the beginning of free market era in Asean next year, opportunities were open wider for Indonesian businesspeople to market their products overseas. In spite of great challenges from the external, it was expected that AEC would stimulate domestic economic growth.

Upon entering the political year which was transitional the businessworld would feel the effect of national instability. Banking observer Jeffrey Wurangian stated that the legal political and security factor would bring significant impact on Indonesia’s macro economy. “Economic growth this year is expected to be positive. Indonesia’s trade balance is bettered before we join AEC next year,” Jeffrey disclosed to Business News [17/1].

Today the banking sector was focusing attention on credit from small-and-medium business [UKM]. A perfect moment for entrepreneurs building their business. To learn a lesson from 2008 crisis. This was the reason why helping KM was a trend to Indonesian banks. “In a situation where economy is difficult, credit for the UKM sector held less risk than credit for corporations” Jeffrey was quoted as saying.

The UMKM sector was constantly growing. Enterpereneurship was energizing the young generation. Regulations became important to ensure security for UMKM and clarify the rule-of-the-game and the consequences. “Day after day the UMKM sector was developing. The Government must be responsive enough to accommodate the trend and not to let UMKM being unprepared to the AEC in 2015.”

In a different location, Chairman of the Executive Board of the Indonesian Chinese Businesspeople Association Richard Tan stated that China’s economy could rely on ASEAN. China was more frequently running events especially expo which involved Asean. Some big projects like power plant, bridges, or even big dam like the Jatigede dam in Sumedang West Java was important for Indonesia-China relationship in investment. The Jatigede dam when completed would be the biggest dam in Southeast Asia. Electricity supply from the Water Powered Generator [PLTA] would be realized. “The project was once suspended, but now running again” Richard disclosed to Business News sometime ago.

The dam would hold water as much as 70%. The reservoir area had been well calculated by the project planner to fulfill ideal capacity. “One of the infra structure needed today is electricity. We can no longer rely on electricity supply from coal powered generators, solar powered, wind, thermal heat etc. China is one country who had successfully build electricity infra structure.” Richard said.

Perpit also saw increasing trend in Indonesia-China trade relationship. One of the events which was part of national agenda was CAEXPO [China-Asean Expo]. Many activities in investment and trading would promote China-Asean strategic partnership. In the past 10 years, China’s investments in Asean especially Indonesia had been growing, We must maintain this. I am also involved in nickel mining activities in East Indonesia. China was expecting mineral supply from Indonesia.”

Meanwhile Business News during a four day visit to Bangkok saw display banners and balihoo exposing AEC. Public activity centers like Udotany, Nong Khay Tailand were displaying banners and balihoo. The people of Thailand were highly reliant on tourism, so anti-Government demonstrations against Prime Minister Yingluck Shinawarta did not disturb Tourism activities. “The public sector and tourism remained’ sacred’. We are only run demonstrations, to urge PM Yingluck to step down at once. We are not anarchic or disturb foreign tourists activities” Witt, a demonstrator coordinator at Lumphini Park Bangkok disclosed to Business News [16/1]. (SS)

Business News - January 22, 2014

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