Rabu, 01 April 2015

ENFORCEMENT AND LAW DEVELOPMENT IN THE FACE OF ASEAN ECONOMIC COMMUNITY 2015

Name     : Muhammad Zaky Adilarif
NIM        : 1214210210
Lecture   : Prof . Dr . Faisal Santiago, SH, MM
Subject   : Business Law

 Economies of Southeast Asia seemed to be an inevitable phenomenon. That is, like it or not, ready or not ASEAN Economic Community 2015 will roll officially on January 1, 2016. After experiencing delays in the execution of about a year, the leaders of the ASEAN countries agreed and remains confident this moment continue to higher stages. While the debate about Indonesia's readiness to deal with it continues to reverberate in everywhere, but no concrete steps from political parties concerning this matter. In fact, election-winning party anybody will be faced with the challenge of ASEAN Economic Community 2015. There are at least two views circulates in society about the ASEAN Economic Community  2015. First, accept the ASEAN Economic Community as an inevitability that could not have been avoided despite the readiness of Indonesia.

For those who believe in this view, the strengthening of competitiveness with improved governance, strengthening the capacity of law enforcement, and indiscriminately into key while performing domestic improvements, including minimizing the losses that occur from the integration of the domestic economy with regional and global economy. The second view suggests that Indonesia should be independent, not dependent with the outside world. In fact, it doesn't need to be integrated with the global world. This thought can be categorized more isolationist.The focus on empowerment of human and natural resources in our own country with the highest possible utilisation for especially Indonesia people. In the extreme in the context of ASEAN Economic Community , participation in this process should be considered and if necessary steps are more nationalistic. Of the two opposing views that appear different consequences. Ironically, whatever the views espoused, there are no political parties that are clearly thinking about them, much less make it happen in a concrete work.Moreover, the election focus will still face the legislative seats contested in various ways.

 5 (five) of the subject goods from ASEAN Economic Community that would not be considered one eye. It took a thorough and systematic preparation well encompassing his regulation devices and infra-structure to support it. This is certainly not to be an exaggeration, given the ASEAN Economic Community, not just the products goods could get out in Indonesia, but also labor, services, and capital. Moreover, as a country that has the largest population and the largest natural resources compared to other ASEAN countries, Indonesia has certainly become a potential market for their products. One of the important tools that need to be prepared to face the ASEAN Economic Community was the construction of the legal system in the form of legislation in favor of the needs of ASEAN Economic Community. Preparation of legal devices support AEC also is not an easy thing to do. This is due to the application of the ASEAN economic integration is still restricted by the policies and economic decisions that are owned by the respective ASEAN countries. This poses a challenge when Indonesia would like to cooperate more closely with other ASEAN countries,Indonesia inevitably must be able to make decisions together.

The issue, on the one side, Indonesia is still reluctant to split some sovereignty, but on the other hand the fact on the ground the Government must realistically to face the demands of the market economy and trade. In the end, the Government of Indonesia will be in a situation that forced it to take a policy together and collectively. The condition that the laws force the invitations that are in line with the policies of the ASEAN Economic Community must contain the same principles, or at least have basic philosophical and sociological value that supports the principles of the ASEAN Economic Community. This is considered important because if our invitation laws yet in line regulations, not the impossible, Indonesia only as a country of destination of sales of goods and services as a result of the ASEAN Economic Community rather than as perpetrators of trafficking itself. Legal developments Expected in the capacity to be able to embody the participation of Indonesia in the cauldron of the ASEAN economic community, or AEC, surely this is not an easy thing. Necessary preparation and of maturity both in terms of legislation,human resources engaged, as well as the infrastructure that supports it. 
        
In terms of the formation of Indonesia's laws and regulations that support the implementation of the AEC, the establishment of a legal product should be in line with the direction of the development of national law as the Foundation in creating and shaping the 3 regulation legislation in question. If you see the view from Romli Atmasasmita, who stated that the development of national law implicitly reflect that until recently in Indonesia still occurs the process of social change towards the modernization of legislation process are packed in a regular and continuous improvement by incorporating socio cultural aspects that support the direction of such changes. This suggests that the development of our national law continues to undergo changes towards modernization with notes keep plugging his socio cultural aspects.In the long term National Development Plan 2005-2025 as stated in Act No. 17 of 2007, not yet seen concretely support the development of national laws in the face of changes to international trade, one of which in the form of the ASEAN economic community, or AEC.

In one of the national development vision provided in Long-term National development plan mentioned that the vision of the national development aims to realize Indonesia plays an important role internationally in the Association by way of solidifying diplomacy Indonesia in order to fight for national interests; Indonesia's commitment to continue the formation of identity and the establishment of international and regional integration; and encouraging international cooperation, regionally and bilaterally between communities, between groups, as well as between institutions in various fields. While the principal goal of this vision is to restore the important position of Indonesia as a democratic State that is marked by the success of diplomacy in international fora in the maintenance of national security, territorial integrity, and safeguarding the natural resources of the national wealth; the realization of national independence in a global constellation; and increased investment companies Indonesia abroad. Next in Long-term National Development Plan 2005-2025, there is a direction of development in order to create a nation of Indonesia which has competitiveness particularly in strengthening domestic economy with a global orientation and competitive power.

To strengthen the domestic economy with a global orientation and the competitive power, need to do some strategic steps in between doing a gradual transformation from an economy based on comparative advantages in natural resources into the economy a competitive edge; still developing economy that is based on the principles of economic democracy that observes the national interest so that the assured opportunity seek and work for the whole of society and encourage the achievement of poverty reduction; and in order to strengthen the competitiveness of the economy globally, the industrial sector need to be built in order to create the environment of micro enterprise (local) which can stimulate the growth of related industries that healthy and strong through (1) value added chain through the development of diversified products (downstream development), we may, to the detriment of the structure or overall development (upstream-downstream); (2) strengthening relationships between related industries including industrial horizontal support and complement industry, including multinational companies associated with networking, as well as strengthening relations with primary sector activities and services that support it; and (3) the provision of a range of infrastructure for improved collective capacity, among other things, include the physical facilities and infrastructure (transport, communications, energy, and infrastructure technologies;measurement infrastructure, standardization, testing and quality control; and infrastructure as well as the education and training of industrial manpower) 

 In relation to the enactment of the AEC will or ASEAN Economic Community 2015. It should be the direction of development of national laws, which implied earlier in RPJPN, directed to support the start of the AEC. It is becoming important to the implementation of the AEC forums especially for Indonesia could be implemented for all stakeholders involved. Nevertheless the legal developments should still be guidedby the directions of the national development corridors in General by incorporating socio cultural aspects that support the direction of such changes. If looking at the AEC blueprint as has been described previously, there are several settings in the fields of law that need to be there for immediate adjustments (adjustment). According to the author's view there are at least fourteen (14) field arrangements and regulations that need to be adjusted to the introduction of the AEC. The fields of trade, industry, investment, labor, food, agriculture, forestry, taxation, consumer protection,intellectual property rights, air transportation, health, tourism, and small and medium enterprises. However, there are also laws that in the settings associated with the spirit of the setting in the AEC.
          
   
            As an example of arrangements concerning the protection of consumers in the AEC as already disclosed in the earlier, that exposure to consumer protection, policies that attempted to build a competitive economic region, performed with such activities including strengthening consumer protection in the ASEAN Coordinating Committee through the establishment of consumer protection the ASEAN countries as well as consumer protection agencies build networks to facilitate the exchange of information. In article 34 paragraph (2) of Act No. 8 of 1999 on the protection of Consumers stated that in carrying out its work, the National Consumer Protection Agency may cooperate with international consumer organizations. Please note that current National Consumer Protection Agency (BPKN) has been established since 2004, and currently has entered the 3rd stewardship until the year 2016. Associated with the settings in article 34 paragraph (2) it can be noted that the authority of Indonesia represented by BPKN opens the possibility to do with co-operation with International consumer protection organization, so this shows also that spirit in the AEC Coordination Committee declared that the protection of consumers of the ASEAN countries.


REFERENCES

=> http://tirtamursitama.com/wp-content/uploads/2014/08/Parpol-dan-Masyarakat-ASEAN-2015-Koran-Sindo-07052013.pdf
=> http://rechtsvinding.bphn.go.id/jurnal_online/ARAH%20PEMBANGUNAN%20HUKUM.pdf


INDONESIA READINESS TO FACE AEC 2015 (ASPECT OF LAW ENFORCEMENT)



Name: Asyifa Pritazora
NIM: 1214210039
Lecture: Prof, DR Faisal Santiago.SH.MH
Subject: Business Law










INDONESIA READINESS TO FACE AEC 2015
 (ASPECT OF LAW ENFORCEMENT)

Asean Economic Community
ASEAN's ambitions to form the AEC are driven by external and internal development area. On the external side, Asia is predicted to become the new economic power, with supported by India, China, and ASEAN countries. Currently, based on the World Bank report (2014), using the purchasing power parity (PPP) international dollars, ASEAN economies accounted for 6 percent of global GDP. It makes ASEAN as the fifth largest economic bloc in the world after NAFTA (20 per cent), the EU (17 percent), China (16 percent), and India (7 percent). Meanwhile, from the internal region, the Asian financial crisis in 1997/1998 provides further motivation for the regional integration agenda in order to build a more resilient financial volatility macro. In addition, ASEAN also has a growing middle class young age very rapidly which can provide new sources of growth in this region.
Now, AEC was in front of the eyes, and we should ask, the extent to which the preparation of Indonesia in the era of trade liberalization this? Because as the country with the largest economy in ASEAN, with about 40 percent of the GDP of ASEAN, and almost half of the population of ASEAN, Indonesia is an important factor in the MEA which will take place this.
The readiness of Indonesia
Unfortunately, if we look at the data from BPS per October 2014 alone, not-yet implemented AEC, Indonesia has experienced a trade deficit with Thailand which reached 3.36 billion US dollars. Of course this is not a small figure. Not to mention if we look at the ranking of Indonesia according to the Global Competitiveness Index, which is still in a 38th of 148 countries, lagging far from Singapore who finished 2nd, Malaysia at position 24, and Thailand at position 37. Then, what should optimize for one year so that we can reap the benefit of the AEC that will take place this.
There are two strategies that must be done if the country is going to profit by the AEC. Therev are strategy into the country and abroad. Which will be discussed is the domestic strategy. Strategy into the efforts made in the country in order to face the AEC, such as the use of domestic products, the improvement of infrastructure and improvement of the national logistics system, improving the quality of human resources, and build industry-based value-added. As we know, the lack of infrastructure support, poor transportation systems / logistics, lack of legal instruments, and the limited number of competent human resources is a major obstacle facing this nation. It has been commonplace to hear that poor infrastructure problems often lead to high costs of production and this leads to, for example, local fruit farmers result we are often more expensive than fruit imports from China that cause local fruit cannot compete in their own country. Likewise, in terms of law is enforcement problem. The entrepreneurs are in need of legal certainty and the rule of law in Indonesia as a country frame of law.
Readiness of Law Enforcement
Legal conditions in Indonesia today are more frequent criticism than praise. Various criticisms directed both with regard to law enforcement, legal awareness, the quality of law, and also weak implementation of various regulations. Criticism leveled so often associated with law enforcement in Indonesia. Most people talk that the law in Indonesia that can be purchased, which won those with rank, name and power, which have much money should be safe from disturbance state law even if the rules are violated. There is recognition in the community that can be purchased because the law then the law enforcement officers cannot be expected to perform law enforcement thorough and fair. So far, the law does not just run as a mere routine but also mocked as merchandise. The law should be the instrument of renewal of society, has turned into a kind of killing machine motivated by the uncertain legal.
Article 1 (3) of Chapter I, the Third Amendment to the 1945 Constitution, has made it clear that Indonesia is a country of law, meaning that the Republic of Indonesia is a state based on law (rechtsstaat), not based on power (machtstaat), and the rule of system constitution (basic law), not absolutism (unlimited power). As a consequence of Article 1 (3) Third Amendment to the 1945 Constitution, there are three basic principles shall be upheld by all citizens, namely: the rule of law, equality before the law, and law enforcement in ways that do not conflict with the law. Indonesian legal system should produce legislation that can serve as a rule in the life of the state and society. But in fact the legislation that is still causing uncertainty in its implementation. Similarly, human rights, respect for the law and human rights is a must and there should be no pressure from any party to do so.
Nation building is basically also intended to meet the basic rights of citizens. It is not only the duty of the government, but also of all citizens that these rights can be met consistently and continuously. If enforced, the law and human rights, the rule of security, peace, or harmonious life will be realized. But otherwise without the rule of law will lead to uncertainty for the community and ultimately hinder the implementation of everyday life in meeting their needs.
To see the condition of the implementation of the rule of law and human rights at this time, there is some legal theory that should be mentioned. First, based on the theory of Van Vollenhoven on the implementation of government power that the government has 4 (four) kinds of functions, namely, the function Bestuur/function command, function Politie / police functions, function Justitie/hearing function, and function Regelaar / function set. In this case, the implementation of these functions must be in the underlying by law because in it there is an element of order which is to be achieved both in terms of administration and in the legal sense. The order in question is the purpose of the law as delivered by socrates and Purnadi Purbacaraka and Soerjono Soekarno.
Second, Immanuel Kant's theory according to which state the purpose of law is to ensure that the legal position of individuals in society, so that the rule of law must have two (2) main elements, namely, the protection of human rights and the separation of powers in the state. Then, the theory A.V. Dicey on The Rule of Law theory or rule by law or Government of Judiciary, who said that this theory has three (3) elements namely, supremacy of law, equality before the law (equal footing before the law), and the rights not rooted in the Constitution or the Constitution but has existed since human beings are born. Both theory shows how the different implementation of a state of law. Indonesia itself based on Pancasila and the 1945 Constitution took prismatic or integrative concepts of the two theories.
Based on some of the theories in the field of law as described above, to achieve these functions must be preceded by a matter of law because in it there is an element of order which is to be achieved both in terms of administration and in the legal sense. Order in question is the purpose of the law as delivered by socrates, and specifically to Indonesia by Purnadi Purbacaraka and Soerjono Soekarno which means the birth of harmony, peace, and justice based on the values ​​of Pancasila. In addition, the theory of Immanuel Kant representing the Continental European countries and the theory of AV Dicey representing Anglo-Saxon countries as well as the concept of Indonesia based on Pancasila and the 1945 Constitution has taken the concept of integrative both theories, showing the same thing with the characteristics of the need for a state guarantee the legal position and the recognition of human rights of individuals in the community, as well as the equation before the law. Three is a principle that is universal, the difference is just how the process of implementation of these three traits.
Likewise that, in line with the Socratic theory of the state that the state's duty is to educate citizens in virtue of promoting the happiness of the citizens and make their lives as good as possible, and the theory of CJM Schuyt who said that the law as a system of interwoven values that gave birth to their personal interests and the public interest, it is expected that the Government can create the rule of law and human rights both within the government and in society.
Relation to the issue of how "legal" right and fair can be established and enforced in Indonesia, it is expected that there are improvements in the material aspects of the legal, human resources, law enforcement, the legal infrastructure and legal culture, the explanation is as follows:
a.              Law contents.
From the aspect of the contents, in general, be expected is the creation of legal materials that can answer the problems of the nation and the state. To that end, the legislation in force in Indonesia, including prevailing in the area in the form of regional regulation shall be in accordance with Pancasila and the 1945 Constitution is important because according to the opinion and Soerjono Purnadi Purbacaraka Soekarno that for the Indonesian nation Pancasila is joint legal harmony. While the theory presented by Prof. Mochtar Kusumaatmadja that the concept of Roscoe Pound said law as a tool of social engineering can be applied with a note that the utilization of the law as a means to manipulate the public by government policy scenarios addressed to the birth of the rule of law.
b.             Human Resources Law Enforcement.
From the aspect of human resources law enforcement, in general, is expected in addition to professional law enforcement but also have good leadership and mentally. As it is known that in addition to the Commission specifically addressing corruption, the institution most responsible for law enforcement in addition to the Commission is the police, prosecutors and the Judiciary. It is expected to law enforcement officers or their human resources can be clean, dignified, and professional.
In addition to human resources law enforcement, human resources in other areas of law such as legal researchers, designer’s legislation, implementing, and law enforcement, is expected also to be professional. In terms of preparing and discussing a law, the government can be said to have a special institution that handles the research and development of a law. In contrast to all members of Parliament who do not understand the material laws? Thus Parliament is also expected to have an expert staff of legislation that can charge all areas of law, so as to assess the legal materials not only on political considerations.
c.            Infrastructure Law.
On the legal aspects of infrastructure that is expected is the supporting infrastructure of the modern legal management system. Expected, the pattern of development of infrastructure of law, must be related to planning law, counseling, legal information network, implementation / enforcement, and legal services. To that end, planning law, law enforcement and law enforcement to modernize. Expected modernization priority on infrastructure includes building law, urban design and layout of the room, office equipment, transportation equipment, computerized, housing, welfare of employees, publishing and libraries.
d.            Legal Culture.
Legal culture is the values and behavior of community members in the life of the law, then the cultural aspects of the law, is expected to create the legal culture in all walks of life. Legal culture is one component in a legal system. However, as has been mentioned that the emergence of legal culture is not solely because of the law but also influenced by other factors. These factors emerge as cultural include aspects of society to live. Culture also means a way of life which is the result of learning from the natural and social environment.

The Law in Indonesia to face ASEAN 2015

ASEAN ECONOMIC COMMUNITY OF THE YEAR 2015 AND ITS IMPACT ON PEOPLE IN INDONESIA IN PARTICULAR PROBLEMS ASSOCIATED WITH LEGAL ISSUES IN INDONESIA

ASEAN was established in 1967. The ASEAN free trade has existed since 1977 in the presence of preferential trade agreements, where the period of 10 (ten) years since the establishment of the existing ASEAN-establishment of the relationship between state-of States members of ASEAN. The development will it continue with the ASEAN Free Trade Agreement ("AFTA") in 1992. So trade liberalization in ASEAN has been there long enough. Therefore, AEC 2015 is not the same as AFTA, as AFTA there from 1977.


The difference between AFTA and the MEA is AFTA tarif  on products or goods, while MEA include goods, services, professions, the flow of people, etc. In essence MEA is an integration of the region in which ten (10) ASEAN members into one on January 1, 2016 with the aim of creating the ASEAN region as a single market and production base that is highly competitive with equitable economic growth as well as integrated with the global economy.



Integration MEA includes four (4) pillars, but this time seems not to meet the ASEAN 4 (four) pillars example yet competitive because there are still problems of uneven development, not equitable because it still UMKN a victim and not integrated into the global economy, for example, Indonesia is still full concentration on domestic needs. In essence, the ASEAN countries are simply not ready to face the MEA.
ASEAN member countries have the freedom to set its own rules, it is a challenge for ASEAN how to move forward together in achieving the four (4) pillars.
One of the benefits of integration MEA is growing competitiveness. Examples of small things that can foster competitiveness is to learn other languages. But in terms of competitiveness, Indonesia still has shortcomings and weakest.
In the field of services related to the professional workforce, new architects and engineers are already a registered professional. Meanwhile, Indonesian workers working professionals in ASEAN totaled 65,000.
The scope of the professional workforce ASEAN ASEAN briefly set on Movement of Natural Persons on ("MNP") Agreement signed by the ASEAN Economic Ministers on the sidelines of the organization of the 21st ASEAN Summit in 2012.
The purpose of the agreement is to provide convenience MNP and transparency temporary residence permit application procedure for professionals in the region. In addition, the MNP is also intended to protect the workforce and domestic workers in each ASEAN country through clear arrangements for cross-border professional workforce. So MNP Agreement does not regulate the flow of people, but on the investment that brings professional workforce.
MNP agreement governing the movement of labor only profesional with catergory as follows :
a. Business Visitor ie employees and / or representatives of the companies in  ASEAN countries to visit in the context of business and investment treaty negotiations and not allowed to conduct business transactions during the visit.
b. Contractual Service Suppliers ie natural person who is an employee of a  company in the ASEAN countries to implement the supply of services to companies in other ASEAN countries is based on a contract between the two companies. Supply of temporary services performed.
c. Intra-corporate transferee is a natural person who is an employee of a company in the ASEAN countries and employed temporarily to perform services in the supply of the company's investment in other ASEAN countries. In agreement Article 3 point e also explained that for the category of Intra Corporate transferee, position level / position natural person who can enjoy the ASEAN Agreement MNP is an office / executive positions, manager and specialist.
d. Categories natural person for the temporary entry and temporary stay committed other more appropriate Schedule of Commitments of each AMS.

The Indonesian goverment in the face inovatuon of ASEAN product among others, as follows :
Presidential instruction NO.5 OF 2008 on focus economic program 2008-2009
Presidential  decree No. 11 of 2011 on the implentation of the AEC blueprint commitment
Presidential decree No.23, 2012 About membership structure ASEAN national secretariat indonesia
Presindetial Decree no. 6 2014 on improving National Competitiveness in order facing MEA
Presidential Decree No.37 of 2014 on the Implementation of the   Preparatory Committee of MEA


Article 5paragraph (2) ASEAN Charter:
Member States shall take all measures Necessary, Including the enactment of domestic legislation NAMAs, to Effectively implement the provisions of this Charter and to comply with all obligations of membership.
Opinion of the Constitutional Court for a Judicial Review are as follows:

a. ASEAN Charter is still a macro policy that can not be tested whether the conflict with the Act of 1945
b. ASEAN Charter is part of Act No. 38 of 2008 so that the Constitutional Court has the right to test
c. Ratification of the ASEAN Charter in the form of the Act is not appropriate because it resulted in countries other ASEAN members should be subject to the Act No. 38 of 2008
d. Loading ASEAN Charter in the form of law needs to be revisited

Values Pancasila In Law Enforcement
The first principle that is on God, reflect the values ​​of the Indonesian people who are religious. The judiciary should be carried out solely for the sake of justice based on God, this is a reflection that the Indonesian judiciary is not under the provisions of secular but there are religious values ​​in it. In addition, although at the level of investigation and prosecution did not include the phrase "Based on God", but the phrase "Pro Yustitia" or "For Justice" has reflected the values ​​of Pancasila.
Sila both the just and civilized humanity, reflecting the Indonesian judiciary always put the protection of human rights, especially Indonesia since the era of the old order has been a member of the United Nations and has ratified the Universal Declaration of Human Rights (UDHR). In terms of investigation and prosecution, law enforcement is not only required but also professional and proportionate must have knowledge that the law enforcement dignity.
Third principle that the unity of Indonesia, it does not mean nationalism in the narrow sense that only tend to Indonesian interests alone. There is currently no single country can be separated from the issue of globalization, so that law enforcement lemabaga teramasuk judiciary should always pay attention to global issues, but balanced with Indonesia's national interests, in order not to be dictated by the international capitalist interests.
Fourthly, namely democracy, led by the inner wisdom of deliberations representation, reflecting that the Indonesian nation to uphold the values ​​of deliberation in solving a problem, it is fitting that respected the judiciary, by promoting the completion of criminal cases, especially concerning the nature of the problems originally a civil relationship through alternative restorative justice with criminal position as ultimum remedium.
The five precepts of social justice for all Indonesian people, reflecting that Indonesia upholds the values ​​of fairness for all its people. Justice is an essential justice, while so far in the judiciary often imposed criminal retributive justice that puts the body as a prison, while the intrinsic justice in a particular case can only be achieved by applying restorative justice as a reformative efforts of retributive justice, for example in the handling of criminal acts corruption that nature originally came from civil relations focus more on the return or recovery of assets not put imprison the culprit.

My opini about this,  i hope goverment still focus with our  community and for the law can be enforced like in economy because mybe for another country  they has  good knowledge but with our country weak knowledge, we hope our law will be good for face MEA and than for bussines micro really need legal protection from goverment because thats really important in economic bussnies for our community



web :
http://www.aai.or.id/v3/index.php?option=com_content&view=article&id=335:notulen-seminar-nasional-asosiasi-advokat-indonesia-mempersiapkan-advokat-menghadapi-era-masyarakat-ekonomi-asean-di-tahun-2015&catid=96:umum&Itemid=550
narasumber :

• Ibu Ina Krisnamurthi (Direktur KSEA Kementerian Luar Negeri RI)
• Dr. Iur. Damos Dumoli, SH., MA (Sesditjen Hukum dan Perjanjian Internasional Kementerian Luar Negeri RI)
• Prof. Dr. Marwan Effendy, SH., MH (Guru Besar Universitas Airlangga, Mantan Jampidsus, Jamwas Kejagung RI)
• Dr. Ricardo Simanjuntak, SH., LL.M. (Advokat/Ketua Bidang Hubungan Internasional DPN PERADI)
• Dr. Sentosa Sembiring, SH., MH. (Advokat & Dosen Fakultas Hukum Universitas Parahyangan Bandung)

Facing the ASEAN Economic Community 2015

Name    : Ni Putu Atmanastuti
NIM       : 
Lecture  : Prof . Dr . Faisal Santiago, SH, MM
Subject   : Business Law            
 In December 2015, the asean economic community will begin. The agremeent has been done 2 years ago by the president from asean coutry, ( Indonesia included ). But are we ready to face AEC ? How about our law, and rule ? Is it ready to face it ?. Before i explain much more about our law regulation in AEC, first i will explain about what is law and aec.The ASEAN Economic Community (AEC) shall be the goal of regional economic integration by 2015. AEC envisages the following key characteristics: (a) a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. And law is a system of rules that are enforced through social institutions to govern behaviour. So basically law AEC is a rules that enforced a region fully intergrated into the global economy.
The ASEAN Trading Link
The liberalisation and integration of ASEAN members’ capital markets has been a key focus area in the lead up to the AEC. The development of an integrated capital market in the AEC will enable the free flow of capital within the region, and should mould ASEAN into an asset class for international investors. The ASEAN Trading Link is a vital cog to this development. The Link connects participating exchanges through an electronic network, essentially allowing investors to freely trade securities in any participating member’s market. Analysts claim that the success of the AEC’s capital markets will be heavily dependent on Indonesia’s participation. However, so far, only Singapore, Malaysia and Thailand have joined the Link.
Indonesia’s Financial Services Authority (OJK) recently admitted that the country’s stock market still faces a number of challenges that need to be addressed before it is integrated into the regional economy. One difficulty for foreign companies looking to list in Indonesia is that their prospectuses must be audited by an auditing commission recognised by OJK. “One of the things that the government and regulators are struggling with is in the context of AEC, how do they make that fit with our Capital Market Law of 1995, which still assumes that auditors, securities companies and other supporting professionals to be an Indonesian entity or have an Indonesian presence,” says Melli Darsa, founder and managing partner of Melli Darsa & Co. “The Capital Market Law has been in the works to be amended for so long. One would think they would have amended the law to accommodate commitments under the AEC to be better implemented, but it still hasn’t been changed,” says Darsa.
As it stands, foreign companies are permitted to list on the Indonesia Stock Exchange (IDX) by issuing Indonesian Depositary Receipts. However, no foreign company has gone down that route to date. “One reason for this could be that we are still at the very early stages of improving the governance and regulatory aspects of our capital markets. There has been a dramatic improvement on various fronts, but more improvements to the standards can still be made,” says Assegaf.
Despite the movement towards market integration, competition is still fierce between ASEAN nations in many industries. It is therefore possible that this perceived regulatory inaction could be due to the IDX and OJK still viewing financial hubs like Singapore as a major rival. For example, if all of ASEAN’s exchanges were to join the Trading Link where securities can be freely traded across markets, companies may choose to focus their listings on the more liquid and mature exchanges, at the expense of other bourses in the AEC.
Forming alliances
The creation of the AEC is likely to spur more cross-border transactions and investment, albeit not immediately. This potential increase in deal flow should trickle down to Indonesia’s law firms. While the current law in Indonesia prohibits international law firms from opening in the country, a number of local firms have forged cooperation agreements with regional law firms in the past 12 to 18 months to broaden their ASEAN reach. Jakarta-based Makes & Partners entered into an alliance with Singapore’s WongPartnership last August, while Rosetini & Partners inked an agreement with Japanese firm Nishimura & Asahi in September. Others have looked to align themselves with international law firms. Linda, Widyati & Partners entered into an association with Clifford Chance in early 2014, while IP boutique K&K Advocates and business law firm Nurjadin Sumono Mulyadi & Partners formed an alliance with Bird & Bird last June. Hanafiah Ponggawa & Partners formed an alliance with Taylor Wessing and its ASEAN network in late 2013. More integrated pairings like Hiswara Bunjamin & Tandjung and Herbert Smith Freehills, Hadiputranto, Hadinoto & Partners and Baker & McKenzie, and Allen & Overy and Ginting & Reksodiputro, have been in place for several years. 
Assegaf Hamzah & Partners, meanwhile, formed an alliance with Singapore’s Rajah & Tann in 2013. Then in August last year, Rajah & Tann combined its eight regional and associated law firms within Southeast Asia to form Rajah & Tann Asia, an integrated platform for cross-border transactional and dispute resolution services across the region. “Clients abroad are looking at firms that are able to provide local expertise and solutions across ASEAN. Our tie-up with Rajah & Tann Asia is a response to that growing requirement,” says Assegaf. However, Assegaf Hamzah & Partners has no immediate plans to enter into formal agreements on a larger scale, he says. “We work with a number of international firms and we want to maintain the ability to do so. By tying up with one international firm, you are closing doors to your relationships with other international firms,” says Assegaf.
For some law firms, remaining independent is the preferred modus operandi. “If your firm is at a manageable size and you know what your niche market is, you’d like the flexibility of working with any law firm at any one time. In fact, the Indonesian clients really rely on us to help them find the best law firm that can do work in the region at any given time,” says Darsa. Melli Darsa & Co. recently ended its alliance with Squire Patton Boggs to focus on its best friend relationships with regional and international law firms. “With Squire Patton Boggs, although we entered into the alliance as part of its independent network, people read more into it. It didn’t benefit us because we weren’t really integrated and indeed our relationship was focused on more long-term strategies in any event like moving beyond our core securities and public M&A practice. As such, we decided that it is better to stay independent, which allows us to realign our relationship with several of the premium U.S. firms which generally do not have any presence in Indonesia,” says Darsa.
While foreign firms are prohibited from opening offices in Indonesia, the country’s Ministry of Law is able to issue up a recommendation for up to five foreign lawyer work permits to be employed in each local firm, says Bunjamin. “Many industry players hope that the government will consider allowing the issuance of more than five foreign lawyer permits per firm, considering the industry is also growing. The five permit limit has been in place for a long time, but the industry has grown significantly since then, so it would be good for business if the limit was raised,” he says.
‘Waiting on the sidelines’
The creation of the AEC this year should strengthen the competitiveness and bargaining power of ASEAN countries in the global marketplace. At the same time, the free flow of goods, services, labour and capital will undoubtedly spark some competition between ASEAN countries. For Indonesia, as the region’s largest economy, this could pose a challenge. “The extent of the AEC attracting big deals in Indonesia also depends on how the country is perceived as an investment target. Laws have to be clearer, and regulators have to understand that foreign investment is required and be less protectionist. Investors are literally waiting on the sidelines, but Indonesia might not be completely ready yet for full integration,” says Darsa.
The Indonesian government needs to play a pivotal role in getting Indonesia ready for the AEC, and clear regulations regarding the implementation of the AEC could help Indonesia’s businesses – both big and small – and legal industry benefit from a fully integrated market and trading bloc. “We need to see clear guidance from the new government in terms of preparing ourselves for this liberalisation. I am sure opening up the market will ultimately be good for Indonesia, but it takes time, and the industry needs to adjust itself,” says Bunjamin.
The key benefit of the AEC for Indonesia is that the ASEAN countries will be able to present themselves as one market and one community, says Assegaf. “When you present the AEC as one trading bloc, which will be the third biggest market in the world, that will attract more investors into this region and add to economic growth,” he says. “For many years, we have been talking about the AEC in 2015 as if it was so many years in the future. But we are already in 2015, so maybe people will begin to properly discuss real implementations of the AEC blueprint.”



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 Bank of Indonesia encourages entrepreneurs and the Indonesian community to use the rupiah currency ahead of the establishment of the ASEAN Economic Community (AEC) in 2015.

"Bank of Indonesia has asked all entrepreneurs and the Indonesian community to use the rupiah currency in every transaction across the nation, as the bank feared that other countries will be one step ahead of Indonesia," said the Bank of Indonesias Deputy Governor Ronald Waas, here on Wednesday.

Indonesia as a large market in the AEC should encourage its currency to boost the international markets trust and prestige among foreign countries, Ronald added.

The high demand for foreign currency will trigger the depreciation of the rupiah, and increasing inflation will also lower Indonesian product competitiveness.

According to Law No. 7 of 2011 on the mandate, the rupiah currency should be used in any transaction related to payment, settlement of other obligations that must be met with money, and/or other financial transactions that are carried out in the country.

Unfortunately, the law has not been enforced with a government regulation, which can describe the law in detail, Ronald said.

The statement was made at a national seminar with the theme "Rupiah as a Symbol of National Integrity and the Obligation of Rupiah Currency in the Indonesian Soil," held in Batam.

The AEC is expected to achieve the goal of regional economic integration by 2015. The community is envisaged as a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy.
   So basically the regulation in indonesia didn't prepared too much because there is some law that cannot being approved by the ministry and house of representatives. So the new regulation need much time to being done and applicationing in the citizens.
Resource :
-http://en.m.wikipedia.org/wiki/Law
-http://www.asean.org/communities/asean-economic-community
-http://www.legalbusinessonline.com/features/aec-approaches-indonesia-ready/68315
-http://m.antaranews.com/en/news/94505/bank-of-indonesia-encourages-use-of-rupiah-ahead-of-aec

-http://kusnandarlaw.blogspot.com/2014/09/aec-2015-and-readiness-of-indonesias.html?m=1