Indonesia Launches Committee to Prepare for ASEAN Economic Community
In order to be fully prepared for the start of the ASEAN Economic Community in late 2015, the Indonesian government has formed a national committee that will provide analysis, evaluations as well as recommendations to the government. Indonesia's president Susilo Bambang Yudhoyono announced plans to set up this committee in April. He stated that the committee will include representatives from the government, entrepreneurs, analysts and members of the public.
Many analysts doubt whether Indonesia is ready to face increased competition from its regional peers due to a lack of quantity and quality of infrastructure (resulting in higher logistic costs), a difficult bureaucracy as well as short term governance which give rise to uncertainties in the investment climate, and undeveloped human resources.
The ASEAN Economic Community (AEC) aims to enhance regional economic integration and has the following key characteristics:
• a single market and production base
• a highly competitive economic region
• a region of equitable economic development
• a region fully integrated into the global economy.
The AEC is scheduled to launch in late 2015. ASEAN comprises Brunei, Cambodia, Indonesia, Malaysia, Laos, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
According to the official website, cooperation within the AEC "includes human resources development and capacity building; recognition of professional qualifications; closer consultation on macroeconomic as well as financial policies; trade financing measures; enhanced infrastructure as well as communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement for the building of the AEC. In short, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital."
ASEAN Leaders adopted the ASEAN Economic Blueprint at the 13th ASEAN Summit in 2007 in Singapore to serve as a coherent master plan guiding the establishment of the ASEAN Economic Community in 2015.
Click here for the ASEAN Economic Community Blueprint