Indonesian law in the face of the ASEAN Economic Community (AEC)

Name: Revi Pradana Putra

NIM: 1214210273

Lecture: Prof . Dr . Faisal Santiago, SH, MM

Subject: Business Law

         As one of the three main pillars of the ASEAN Community by 2015, ASEAN Economic Community was formed with a mission to make the economy in ASEAN for the better and be able to compete with countries whose economies are more advanced than the current condition of the ASEAN countries. In addition, the realization of the ASEAN Community in which there is the economic aspect, can make ASEAN into a more strategic position in the international arena. The realization of the AEC community can open the eyes of all parties, so that there is a dialogue between the sectors where the latter also complementary among stakeholders economic sector in ASEAN countries is very important. For example for infrastructure in Indonesia is still very need, whether it be roads, airports, ports, and so forth. In this case we can benefit from the exchange of experiences with other ASEAN members. According to DKK Firstborn (2013) says that the opportunity for Indonesia to be able to compete in AEC 2015 is actually quite large, Indonesia is currently ranked 16th in the world for economies of scale.
          Economies of scale are also supported by the proportion of productive age population and the growth of a large middle class. Indonesian economic prospects are positive is also supported by the improvement of Indonesia's investment rating by the rating agencies as well as the inclusion of the Indonesia as the world's rating of 4 (four) prospective destinations according to UNCTAD's World Investment Report. Increasingly strong fundamentals of the Indonesian economy can be seen when many countries are "fallen" buffeted by the global economic slowdown, the Indonesian economy can still be maintained for positive growth. To realize the opportunities AEC 2015, it's time to clean up and to take effective measures and directed and supported by various parties. When viewed from the side of the demographics of Human Resources, Indonesia in the ASEAN Economic Community is actually one of the country productive. When viewed from the factors of age, most of the population of 9 Indonesia, or about 70% of them are of childbearing age. If we look at the employment we have 110 million workers (Central Bureau of Statistics, 2007), which is conducive to the stability of the Indonesian economy is an opportunity which Indonesia will become a force of its own, especially with the natural resources that are so large, it will be very does not make sense if we can not do anything with it. When you look at the records of trade with ASEAN countries last few years, Indonesia worth optimistic that the MEA is an opportunity to progress more rapidly. Trade relations with ASEAN countries has boosted exports.
     Indonesia is currently around 50 percent contributed to the growth of ASEAN countries. This figure gives a positive signal that the MEA is the form of an increase in the intensity of economic relations with ASEAN countries, which would give effect promising to the Indonesian economy in the future. In addition, the number of middle class and a large portion of the economy is expected to lead economic growth in the ASEAN countries. ASEAN economic integration is likely to be a stepping stone for Indonesia to have a strong bargaining position in global political constellation. Indonesia and even predicted that there will be a country with a seventh-largest economy in 2030. This fact and the future predictions provide fresh air in the building optimism Indonesia look to the future, especially ahead of the entry into force of the AEC in 2015. However, despite the optimism of potential opportunities, many among skeptical with Indonesian readiness to face the MEA. Most alarming MEA will lead terhantamnya business sectors in the country. Other concerns also arise due to weak competitiveness, the development of the infrastructure that is not maximized, and the current account deficit. These problems are fundamental things that make some people are pessimistic about the readiness of Indonesia to face the MEA 2015. Concerns about the unpreparedness not only happen in Indonesia, but also in countries other ASEAN. This was revealed by the investigation conducted by the American Chamber of Commerce in Singapore. 10 survey involving 475 senior American businessman revealed that 52 percent of respondents do not believe the AEC can be realized in 2015.
          Besides, it can be concluded that the concerns about the readiness of Indonesia in facing the ASEAN Economic Community, can be said to be ready, but in the country are needed to reduce economic inequality gap between central and local governments and reduce the gap between SMEs and large employers with an increase in some sectors that may still should be encouraged to improve competitiveness. This implies that the competition aspect of thrusting the opportunities and challenges for all countries. However, Indonesia's natural resource wealth that is second to none in the region, the local-advantage which remains a strong attraction, in addition to the largest population that can provide cheap labor. We must immediately improve itself to prepare Indonesian Human Resources of very competitive and global. Towards 2015 it was not long, Are you ready we'll Challenges and opportunities for our young professionals to not stunned passersby watched foreign workers in our region. Indonesian challenge ahead is to bring meaningful change to the lives of everyday people. Hopefully all Indonesian people we can help to realize the economic and social life worth so that we can immediately realize the ASEAN economic community. 
There are several things that need to be considered or record for the world of employment prior to the time our country will actually enter the MEA.
          First, in terms of legislation in the field of employment. Although the sources of employment law in Indonesia there are legal provisions in the various legislation, Act No. 13 of 2003 on Employment is the principal legislation that contains a thorough and comprehensive regulation in the field of employment. This is the handle as the rules of the game world of employment in Indonesia when entering the MEA. However, if the law already protects workers especially when going into the MEA? With so many companies and foreign workers who will enter later, whether this law will also protect Indonesian workers? For example, in every speech or demonstration conducted by the workers, the implementation of systems and outsourcing contracts based on the Act is deemed to have weakened the position of the workers because there is no job security, wages certainty, even the certainty of other welfare benefits so that workers / laborers ask it is to be removed. Even the government is often accused of having a lot of deleting or changing the protective regulations for the sake of investments into the country of Indonesia.
           Second, from the Human Resources (HR) Indonesian workers. HR competition between countries of ASEAN is a sure thing happens when opening the gate MEA later. When the Indonesian workers are not prepared to deal with this open competition, MEA will be a scourge for Indonesian workers because it will not compete with workers from other ASEAN countries. How readiness Indonesia welcomes MEA HR 2015? Based on BPS data, the number of Indonesian labor force perFebruari 2014 has reached 125.3 million or an increase of 1.7 million compared to February 2013. However, the labor force is still dominated by primary school graduates down the 55.31 million, followed by junior high school graduates 21 , 06 million, 18.91 million high school, vocational high schools 10.91 million, Diploma I / II / II 3.13 million and universities, only 8.85% (Koran Sindo, May 6, 2014).
          Third, in particular law enforcement inspectors. Labor inspection should be carried out in accordance with the provisions of Article 134 of Law No. 13 Year 2003 on Employment, which states that "In order to realize the implementation of the rights and obligations of workers / laborers and employers, the government must implement the monitoring and enforcement of labor legislation". In the face of the MEA, the position of inspectors becomes very important in order to be more conducive industrial relations and as a protector of the workers in the face of global competition. Preparation effort that must be addressed is the quality and quantity of labor inspectors to supervise the implementation of Law No. 13 of 2003 on the Employment. In terms of quality, with the change of government system which initially resulted sentaralistik to decentralized government authority is now mostly relies on the county / city. However, the Department of Labor (Manpower) which should be protective for workers can be said to have not been able to perform the function as it should and know labor issues in depth because often the educational background and work experience of the labor inspectors do not support. This is due to the implementation of personnel transfers are often less attention to the person of the current educational background will perform mutation.
          Meanwhile, lawyers and activists, Nursyahbani Katjasungkana asserted that the Indonesian people are not ready to be a part of the MEA. "We're not ready mentally to thank all products and also strangers Asean to go to Indonesia," he said separately. According needed readiness of legal protection for people and labor and protection of products and intellectual property rights, especially women's work such as weaving, batik and others. "Now we are not only able to anticipate the Chinese products that dominate world trade. HR we still aspire become civil servants, less innovative and familiar with economic rent. Thus there will be an abundance of human resources demographic bonus even in their own country, "he said Indonesia forcible unification in the MEA thinks the same as that witnessed in the European Economic Community (EEC)." In the Netherlands, for example, for instance, that many people are migrating from poorer western European example of Poland. They can not compete with the Dutch population education and mastery of the language better. Thus HR and legal protection of intellectual property rights we do not support the MEA. Which law protects all of it, "he said. (Dian Dharma Tungga)




Reference:
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