Monday, June 10, 2013

Is Indonesia Ready To Face AFTA ( Asean Free Trade Area) 2015

As we are aware Indonesia is facing a new Era where its Economic Growth for this Year is targeted to be around 6,3 %; The population of Indonesia is around 250 million, which means that it is a significant  place to target Indonesia as the market place for products such as Ipad, Handpohone, Computers and other consumer products, electronics, Auto Cars, Motor Bicycles, Washing Machine, TV, Refrigerators and other consumer Goods; We can see that there are so many Malls selling such consumer products including in Jakarta and other growing cites in Indonesia; 

However, we have to be fully aware that  Indonesia is also currently facing the AFTA Year 1915, where  ASEAN Free Trade Area (AFTA) will be effective and takes place. As we are aware the AFTA Council has agreed that the target dates to achieve this free trade Area is 2015 for 6 original members and 2018 for newer members.This will create an intergrated market where there shall be free flow of goods and services within the Region; Thus, in the Year 2015,  Indonesia will face the Asean Free Trade Area where all the South East Asian Countries will eliminate intraregional tariffs and non tariff barriers among the members of this Southeast Asian Countries; It means that they plan to intergrate the ecomomies in this region into a single production base and regional market; AFTA goal is to increase Asean competitiveness  with the other Global Regional Integrated Area, to attract investments and jack-up the trade between members of this AFTA;         The Real Big Question :  is Indonesia ready for these AFTA Era ? Compared to the  Asean members itself,  the business environment climate in Indonesia which includes the lack of  infrastructure, the long period to start up a business, the bureaucratic process, the inconsistency in the regulatory framework, the non-integrated communications between the inter department sectors, the mental attitude of the local as well as central government officers which needs more transparency, as well as switching their mentality from seeking power and respects as Government Officers  which  had caused non efficiency and high costs economy, and  results non competitiveness of Indonesia within the Asean region, to become into focusing to provide good quality public services to the business investors, stakeholders and players in speeding the processing permits, registrations process, approving Plan for Development (POD) in the Energy Sectors, Oil and gas and Mining sectors to enable to Indonesia to be more  competitive with the other Asean Member countries,

  • As a Professional Business Lawyer practicing as Legal Consultant to Clients for more than 15 Years through Suleiman Agung & Co (SACO LAW FIRM) , and 15 Years as In House Legal Counsel in Private Companies, and Law Firms,  the Writer of this Blog feels that Indonesia needs much more dedicated public servants who are really serious and have the strong mental behavior, attitude which must be far from arrogance in serving the needs of  the investors to have a more welcoming, non-bureaucratic attitude to enable Indonesia to reach the same level of professionalism  as we may found in other members of the Asean Countries in facing the coming AFTA 2015 Era.
These switching mentalities must also be applied by the Indonesian Professionals, as well as the Indonesian Private Companies who are engaged in selling goods, services as well as Investors and business players including its employees to be able to compete with other Asean Players in the   AFTA 2015 Era.  
Jakarta,  10 June 2013
Agung S.Suleiman


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