AseanEconomicCommunity:ChallengeandOpportunity

ErniYulianti
PhysicsStudiesProgram, FacultyofMathematicsandNaturalSciences, Padjadjaran University
Jl. Raya Bandung Sumedang Km. 21, Jatinangor, Jawa Barat 45363
Email: erni13yuliantil@gmail.com
Abstract
Indonesia is a member country of the ASEAN Economic Community (AEC), which came
into effect in early 2016. AEC is the early rounds to develop a variety of quality economies
in Southeast Asia for Indonesia. AEC become two sides of a coin for Indonesia: one side is
a good opportunity to show the quality and quantity of products and human resources (HR)
Indonesia to other countries openly, but on the other side, it can be a boomerang for
Indonesia if Indonesia can not utilize this opportunities. The challenges facing Indonesia in
the AEC that are the rate of increase in imports, the rate of inflation, the similarity of
products, the competitiveness of priority integration sectors, the competitiveness of human
resources, and the level of economic development. As for the opportunities that can be taken
by Indonesia in this AEC that are, the potential market of the world, the country of export,
country of destination investor, competitiveness, the service sector is open, the flow of
capital. The things that must be prepared by the Indonesian community in facing of this AEC
that are the ability in leadership, public speaking, foreign language, project management,
negotiation and mediation, networking, and good attitude.
Keywords: ASEAN Economic Community (AEC), challenge, opportunity, preparation

1. Introduction
ASEAN Economic Community
(AEC) is a regional community that has
a joint agreement to integrate the
economy including all markets of
ASEAN member countries..
There are four things that will be a
focus on AEC that can be used as a
good momentum for Indonesia. First,
countries in Southeast Asia will be used
as a unified region market and
production base. With the creation of
the unity of the market and production
base will make the flow of goods,
services, investments, large amounts of
capital, and skilled labor becomes no
barrier from one country to another
country in Southeast Asia.

Second, AEC will be established as

an economic region with a high level of
competition, which requires a policy
that includes competition policy,
consumer
protection,
Intellectual
Property Rights (IPR), taxation, and ECommerce. Thus, it can create a
climate of fair competition; there is
protection in the form of a network
system of consumer protection
agencies;
prevent
copyright
infringement; creating an efficient
transport
network,
secure,
and
integrated;eliminating
the
double
taxation system, and; increase trade
with online-based electronic media.
Third, AEC also will serve as the
region
has
equitable
economic
development, with priority on Small

and Medium Enterprises (SMEs).

Competitiveness and dynamism of
SMEs will be improved by facilitating
their access to the latest information,
market conditions, the development of
human resources in terms of capacity
building, finance, and technology.
Fourth, the MEA will be fully
integrated to the global economy. By
building a system to improve
coordination of the member states. In
addition, there will be increased
participation of countries in Southeast
Asia in the global supply networks
through the development of a package
of technical assistance to countries less
developed ASEAN members. This is
done to improve the capabilities and
productivity of the industry so that not
only enhancing their participation in a
regional scale, but also gave rise to the
initiative to globally integrated.
According to the description above,
it can be ascertained that the job will be
open to the widest possible community
ASEAN region. However, besides, the
citizens will scramble to get a job. They
will be out from one country to another
without any hindrance from the State
destination. Therefore, for community
of Indonesia itself, AEC can be a
challenge and an opportunity.

2. Methodes
The method that is used in this paper
is a literature study method. The idea
and the exposure of each material
developed through several references so
that the material presented is a
summary of some references. The facts
are collected and compiled in a single
unitary continuous material. The data

have been obtained and analyzed by

descriptive
analysis
method.
Descriptive analysis method is done by
describing the facts which are then
followed by analysis, not merely
outlines, but also provide insight and a
simple explanation.

3. Result and Discussion

Indonesia is a member country of
the ASEAN Economic Community
(AEC), which came into effect in early
2016. However, the AEC is not a new
thing, but rather a long process since
the formation of PTA in 1977. MEA is
the realization of economic integration
in the ASEAN region dynamic and
competitive economy where the gap
between countries is getting reduced.
AEC become two sides of a coin for
Indonesia: one side is a good
opportunity to demonstrate the quality
and quantity of products and human
resources (SDM) Indonesia to other
countries to open, but on the other hand
can be a boomerang for Indonesia if
Indonesia can not use it properly
The challenge for Indonesia in facing
AEC
Applicability of this AEC provides a
challenge for AEC member countries,
especially Indonesia. As for some of the
challenges for Indonesia in the face of
this AEC among which, first, the rate of
increase
in
imports.
If
the
competitiveness of Indonesia is not
immediately corrected, the value of a
trade deficit with ASEAN Member
States will increase. Second, the rate of
inflation. Macro stability remains a

constraint
increase
Indonesia's
competitiveness and prosperity level in
Indonesia is still relatively low in
ASEAN. Third, the products are
similar. It is important for Indonesia is
pursuing a strategy of adding value and
innovation for products eskpornya that
has its own characteristics.
Fourth, the competitiveness of
priority integration sectors. Currently,
Indonesia has the advantage in the
commodity sector such as: wood-based
products, agriculture, oil palm,
fisheries, rubber and electronics, while
that for textiles, electronics, minerals
(copper, coal, nickel), machinery,
chemical products, rubber and paper
still with a limited level of excellence.
Fifth, the competitiveness of human
resources. Indonesian human resources
capacity must be improved both
formally and informally to exploit the
potential
of
wide-open
job
opportunities in ASEAN. Sixth, the
level of economic development. High
levels of inequality between Indonesia
and Singapore, Malaysia and Thailand
is one of the problems in the region is
quite urgent to be solved in order not to
hamper the acceleration region towards
AEC 2015.
Benefits and Opportunities of AEC
for Indonesia
There are several benefits of AEC
for Indonesia, among which economic
integration is based on the conviction
will boost economic growth in the
ASEAN region in general and
Indonesia in particular. In addition,
economic integration will also be a lot
of
open
jobs,
lowering
the

unemployment rate and improve the

welfare of the people of ASEAN.
The opportunity for Indonesia by the
realization of economic integration of
ASEAN region. First, the potential
world market. The population of
Indonesia is the largest in the ASEAN
region is a huge potential to become a
productive and dynamic economy that
can lead the ASEAN market in the
future. Secondly, the exporting country.
The ASEAN countries are known as an
exporter and Indonesia have a
commodity that is likely to be increased
their exports to the world, among
others: office equipment, spices,
jewelry, handicrafts, fish and fishery
products, essential oils, processed
foods, medicines, medical equipment,
as well as leather and leather products.
Of course, Indonesia should carefully
identify the destination market in
accordance with the specifications and
market segments and product quality.
Thirdly, investor destination country.
Indonesia is expected to attract
investors into the country and get
greater economic opportunities than
other ASEAN Member States because
of the breadth and diversity of potential
Indonesia. Fourth, competitiveness.
Indonesia as one of the major countries
that also have a high level of
integration in the electronics sector and
sector-based comparative advantage in
natural resources, has a great
opportunity to develop the industry in
these sectors. Fifth, open the services
sector. Skilled manpower Indonesia
(accountants, doctors, nurses, architects
and so on) which sizeable have the
opportunity to work in international
companies spread across the ASEAN

region. In addition, the service sector is

likely to Indonesia in the ASEAN
market is the field of construction,
healthcare, e-ASEAN, logistics, air
transport, and tourism. Lastly, the
capital flows. Investment regime is
increasingly open to foreign equity
ownership rate reached 70% and is
supported by natural resources and
abundant human resources make
Indonesia as an attraction for foreign
investors to invest in Indonesia.
In the face of AEC, the Indonesian
people must prepare themselves in
some of the following:
1. Leadership
People who were gifted the lead is
always needed everywhere. Because
people like this have a tendency to set
up and very concerned about the
progress of the group.
2. Public Speaking
Speak in front of crowds is a skill
not everyone. In the world of work,
people with presentation skills and
public speaking was the one who often
so reliable
3. .Foreign Language
The ability of English, both spoken
and written already not a plus but
obligatory. Therefore, in addition to
English, we also need to master other
languages such as Mandarin, German,
French, and Spanish.
4. Project Management
Can be defined as the knowledge to
design a project. In essence, learning to
work in a professional manner. How do
we work in a team and personally.
5. Negotiation and Mediation
Negotiation and mediation will be
needed in the working world.

Therefore, it must continue to hone and

improve.
6. Networking
Networking is building networks to
help our careers. How to build
networking is to expand relationships.
7. Attitude
Attitude is also crucial in our
success. There is some attitude that we
must have among which oppenness,
curious and critical, professionalism.

4. Conclusion
ASEAN Economic Community
(AEC) is a regional community that has
a joint agreement to integrate the
economy including market all ASEAN
member countries. AEC into two sides
of a coin for Indonesia: one side is a
good opportunity to demonstrate the
quality and quantity of products and
human resources (HR) Indonesia to
other countries to open, but on the other
hand can be a boomerang for Indonesia
if Indonesia did not can make good use.
The challenges facing Indonesia in the
AEC is the rate of increase in imports,
the rate of inflation, the similarity of
products, the competitiveness of
priority integration sectors, the
competitiveness of human resources,
and the level of economic development.
As for the opportunities that can be
taken by Indonesia in this AEC among
which, the potential market of the
world, the country of export, country of
destination investor, competitiveness,
the service sector is open, the flow of
capital.

Reference

ASEAN Secretariat (ASEAN). 2008.

ASEAN Economic Community
Blueprint.
Jakarta:
ASEAN
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Direktorat
Jendral
Kerjasama
Perdagangan Internasional. 2014.
Masyarakat Ekonomi ASEAN
2015.
http://ditjenkpi.kemenag.go.id/
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08.21 AM)
Baskoro, Arya. 2015. Peluang,
Tantangan, dan Risiko Bagi
Indonesia
Dengan
Adanya

Masyarakat Ekonomi ASEAN.

http://crmsindonesia.org/knowledg
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14 April 2016 at 08.21 AM)
Istiqomah, Ita. 2015. 10 Kiat
Mempersiapkan Diri Menghadapi
MEA
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https://www.getscoop.com/berita/k
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April 2016 at 08.21 AM)