Saturday, July 26, 2008

An Indonesian facing AEC

It is foretold that AEC will create comparative advantage for each nation so that increase each output. European Union is a proof that economic integration will craft greater confidence of the market. Nevertheless, does every tier of Indonesian people will enjoy the same impact?

ASEAN Economic Community is a concept where there is no border in economic activities among ASEAN countries by freer flow of trade, investment, and human resources. However it has several potential hazards, like unsmooth flow in resources among countries in the union, Indonesia’s decentralization system is still in its ‘baby’ stage, the wages rigidity compared to Vietnam and other country, plus do with different political stances and government policies’ structure a free flow area can be implemented? Won’t it cause an instability and big gap in resources allocation? Economics theory will always say that the unequilibrium of wide gap of prosperity will adapt so that economy will be efficient in the long-run. Nevertheless, do in the complex and globalize economy can made the long-run assumption lasts? Dynamic economy transaction is occurring in many areas that would not cause any long-run stability.


Supportive (familiar) regulations
This type of crutch has been elaborated, researched and even (dare to be) suggested by many international organizations. Among many suggestions that those organizations recommend are minimizing corruption, infrastructure investment and maintenance for trade, law enforcement, clear and protective Act for investors and entrepreneurs, bureaucracy reformation, depleting grassroots subsidy, encourage classical economic theory of the market’s invisible hands, and many others. I believe that the 1st rule of giving well advises am I had to be his/her best friend with empathy. Indeed that fairness and supporting infrastructure for business essentially important. But, do those counselors really have empathy? are they really our best friends? or without any distrust, do they really understand our conditions and cultures? not really I think…

Inhibit excessive capitalism
Taking people’s freedom is currently not from colonialism but through imperialism, like the adaptation of change, right now the war is changing from the borjuis and proletarian to consumers vs. producers. In which, this integration will be the solution. It will create comparative advantage between ASEAN countries make each country focus, yet the different added value each country produce is questionable. Without doubt, it will create efficiency for the alliance; still it will kill the inefficient enough SMEs. For that reason, Indonesia government must compose regulations to protect the ‘not enough’ actors. Decentralization has created an opportunity to do so, that choosing core competence and products with intensive labor (and still checking with other countries comparative advantage) will be a foremost step to take. Along the way, education and health level must be fueled to support the transform our human capital into a primed capital intensive labor. Additionally, technological transfer must be given incentive in the preparation of the 2030’s goal. The attack of monetary crisis is still vividly recalled; thus, stringent watch in the financial market is essentially needed to harness speculators and ensure its stability.

Nationalism that I believe
Our nation has a loose grip in our identity. Many have become individualistic and forgot about our principle of tenggang rasa (helping each other) that jealousy and dubiously create conflict in several areas; yet many are so considerate that it becomes the reason for corruption, collusion, or nepotism. Have we forgotten that our land is so fertile that it can grow anything? or the concept of harmony in our role that our ancestors always teach? are monetary things very urgent for us that the proud of becoming Indonesian only prevent us to become happy? Delayed hunger will not make us die but delayed thinking and believing will… Can’t we be proud in our country that obtains our own freedom? Can’t we be proud that we have so many cultures that it seems to complete each other? Can’t we be proud that many Indonesians are exceptionally smart? Can’t we be proud that we got abundant of legacy in philosophy from our ancestors?.. Proud is useless without understanding the essence.. Does our government really has the nationalism spirit or it slowly decayed? I hope they have because I sincerely believe that it is the groundwork of civil and economic regulations facing AEC


Like some know that now I am the part of the community and government. Maybe this is the enclosing question that I would ask to myself, am I going to be a person that only talks truthfully? or I will also be a person that do what I think and talk with integrity?...

9 comments:

Ismail Al Anshori said...

fiuuhhhh... finally.. hehe...

I'm not sure AEC will increase our economic strength because Indonesia's government has no vision at all (so far as I know, we have no economic plan). It will cause the economic movement will be just goin' where the wind blow.
We'll just go, don't know where to go and what we're look for, and in the end we'll figure out that we've just being slaved or sucked by others.

This is skeptical of course. But I hope I'm wrong.


You say : "Does our government really has the nationalism spirit or it slowly decayed?"
Coz u worked in bureaucracy office, I think u'll know it soon, heuheu..
As u know, I had bad experience with peoples from your workplace..

Anonymous said...

First of all: If you can't trust your government, trust your nation. Believe in it.

I agree that Indonesia is not yet ready to embrace the AEC.At the Davos WEF , you can also find the Prime Ministers of Singapore and Malaysia, the President of The Philippines and other ASEAN leaders saying the same thing about their respective companies. No one is ready. Everybody is afraid. But everyone else thinks they will and can cope and adapt. We should too.

Even the EU nations had a rough time, decades, of adjusting. You may recall the early 1980s "bankruptcy" of the BoE. The regional monetary policies at that time created a loophole big enough for money market speculators, led by George Soros, to exploit and bankrupt the Bank of England. Once upon a time, they were not the powerful EU we know of today. But they learned and progressed. We can and we will, too. As long as, that is, smart people like you stay in the nation's major decision making institutions (BI is independent from the government, I believe. But CMIIW)

BTW, I oppose "protectionism" in any form. Protectionism leads to the formation of inefficient businesses that will never be able to compete in the global market. The government has applied regulations to both SMEs and Big Business. But the protection towards big business, through the grants of monopolies and concessions, has damaged the nation the most (Read: Asian Godfathers, Joe Studwell). What we need is a fair business environment, that will promote efficient businesses to the global marketplace. I think that once we stop protecting and start supporting.

See you soon :)

Anonymous said...

First of all: If you can't trust your government, trust your nation. Believe in it.

I agree that Indonesia is not yet ready to embrace the AEC.At the Davos WEF , you can also find the Prime Ministers of Singapore and Malaysia, the President of The Philippines and other ASEAN leaders saying the same thing about their respective companies. No one is ready. Everybody is afraid. But everyone else thinks they will and can cope and adapt. We should too.

Even the EU nations had a rough time, decades, of adjusting. You may recall the early 1980s "bankruptcy" of the BoE. The regional monetary policies at that time created a loophole big enough for money market speculators, led by George Soros, to exploit and bankrupt the Bank of England. Once upon a time, they were not the powerful EU we know of today. But they learned and progressed. We can and we will, too. As long as, that is, smart people like you stay in the nation's major decision making institutions (BI is independent from the government, I believe. But CMIIW)

BTW, I oppose "protectionism" in any form. Protectionism leads to the formation of inefficient businesses that will never be able to compete in the global market. The government has applied regulations to both SMEs and Big Business. But the protection towards big business, through the grants of monopolies and concessions, has damaged the nation the most (Read: Asian Godfathers, Joe Studwell). What we need is a fair business environment, that will promote efficient businesses to the global marketplace. I am not that naive to actually believe that the government could "let go" of business. But the government need only to promote the truly entrepreneurial and efficient businesses. Not businesses formed through "special connections". This is what the Germany did with VW and Mercedes, what South Korea did with Samsung, what Japan did with Toyota, Honda and Sony and what China did with Huawei. I think that once we stop protecting and start supporting, we would stop lagging and start propelling.

See you soon :)

Anonymous said...

lol, bagus banget tulisannya. Mengenai 'integration of pruducer and consumer' gw setuju bgt. Saat ini kayakaknya Orang Indonesia lebih tertarik menjual 'tenaganya' daripada 'produknya'. Mestinya setiap orang bikin produk dan jual, sambil beli produk orang lain (yg buatan Orang Indonesia juga). Terus roda perdagangan dalam negeri berputar, gitu maksud lo bukan? Hal seperti ini udah mulai ada loh di Bandung, seperti kita bisa lihat maraknya industri kreatif.
Hal lain yang menarik juga 'hilangnya identitas bangsa'. Waduh-waduh gmana ya caranya biar bisa menyelamatkan?

Unknown said...

arlo:
can't delete the 1st comment. dunno how :D
of course,the integration is unavoidable. if we don't involve we'll be damaged by being reclusive. I definitely agree, we have to be prepared, hopefully the posting will help in solving it.
i definitely agree that we have to support each other, and efficiency is essentially needed. yet, what will happen if superindo or carrefour will crash traditional market? what happen to the traders? is efficiency an absolution? which is best and which is right?
I believe that government's philosophy of existence is to ensure grassroot's welfare..

anto:
hmmm...what I mean was the integration of ASEAN. Consumers v.s. producers war means that nowadays consumers are so demanding to products that force the producers to innovate and shorten their business cycle; thus, many companies are struggling to stand in their feet. AEC is the answer for consumer thirst.
hmm..about using our own product of course, it's very important that we should have a strong basis in domestic consumer. I strongly agree with that!!Thanks for adding it up..

mail:
seems that, you have to talk with arlo!!hahaha
very interesting..whuzzup with the institution? not all people in the institution is like that, I even believe that this institution have higher idealism among other institutions. :)
can't wait to talk with you

Thanks guys

Anonymous said...

nationalism brings patriotism
patriotism brings war

and i see a lots of nationalism on you, young lady

melur said...

loli... ikut coret2 donk?
baca blog aku ya ;))

Anonymous said...

Menyelamatkan masa depan bangsa?
Aku nggak tahu apa yang kalian bicarakan, tapi sebelum kita merencanakan masa depan bangsa kita ada baiknya kita melihat masa lalu bangsa kita.
Negara kita lahir pada Perang Dunia ke 2. Masa saat dunia sedang depresi.
Pada saat itu amerika yang pada saat itu sudah menjadi budak Zionis walau saat itu belum lahir israel melihat potensi yang menjanjikan pada indonesia, namun belum melakukan apa-apa.
Setelah Soekarno memimpin dan Komunis berkembang biak di bumi pertiwi ini, barulah amerika merasa terancam asetnya akan dikuasai komunis. Maka dibuatlah sebuah plot yang kita kenal sebagai Revolusi.
Disitu Soeharto yang didanai oleh amerika keluar sebagai pahlawan dan lahirlah orde baru.
Setelah itu Soeharto dan pengusaha-pengusaha Indonesia melakukan pertemuan dengan Amerika di Swiss. Hasil dari pertemuan itu adalah minyak mentah dan barang tambang Indonesia dijual ke Amerika
dan kita harus membeli bensin ke Amerika, lucu khan? Hasil penjualan minyak pun lebih banyak yang masuk ke kantong Soeharto daripada ke kas negara.
Maksud gue adalah indonesia bukanlah sebuah negara, apalagi sebuah bangsa, indonesia hanyalah sebuah perusahaan yang dimiliki oleh Zionis. Siapapun yang jadi pemimpin tidak akan mengubah apapun. Hanya berganti direktur tapi tidak berganti pemilik.
Jika Anda memikirkan masa depan indonesia, maka jadikan indonesia sebuah kekaisaran dengan pemimpin yang berani melawan amerika dan anjing-anjing Zionis, tak perlu demokrasi tai yang tak berguna. Kalau ini sudah terjadi dan indonesia sudah terbebas dari Zionis, barulah kita bisa merasa bangga menjadi sebuah bangsa, dan akan lebih nyaman berbicara tentang nasionalisme

Unknown said...

The Main question is, how we can solve our own problem in economics field?
lets take a look Indonesian economics, In 2002, Indonesia’s Domestic and Foreign Debts stood at $152 Billion dollar, which was equal to 80% of its GDP. It was Rp.1.370.0 trillion Rupiah in debt while the size of its GDP was Rp. 1.716.5 trillion rupiah. In December 2006, Indonesia’s total public debt stood at $144 billion USD dollar, 48% of its GDP. By the end of 2008, Indonesia’s Domestic and Foreign debts are projected to stand at about $136 billion dollar, which is around 36% of its GDP
Now let take a look about Indonesian Corruption..in March 14th 2007, A separate corruption index, for Asia, put out by the Political and Economic Risk Consultancy (PERC), has been released. Indonesia is still at the second most corrupt country in Asia as Thailand, while the Philippines takes the crown being the most corrupt country in Asia.
It 's the circle of the devil of Indonesian Propblem..