Posted on 20 Nov 2015
RI workforce to remain competitive in ASEAN
Vice President Jusuf Kalla has told
people not to worry about free trade pacts such as the ASEAN Economic Community
(AEC) and Trans-Pacific Partnership (TPP), saying that the government will
ensure that people benefit from the deals.
“Don’t worry about [trade] openness. It should be treated as a challenge, not
as a hassle,” he said in a speech on Tuesday.
He addressed people’s concerns over potential job competition in Indonesia once
the AEC became effective on Jan. 1, 2016, saying that competition would not be
an issue as wages were lower in Indonesia compared to other ASEAN member states
for certain professions.
“Don’t worry about foreign workers taking jobs. When a foreign businessperson
comes here, 100 new job opportunities open up,” Kalla added.
Kalla was referring to the single market vision of the AEC, which includes the
free flow of skilled labor, in addition to the free flow of goods, services and
capital, among others.
The Vice President took a jab at people who questioned the country’s readiness
for the AEC and controversy surrounding Indonesia’s intention to join the TPP.
“We always say that we are not ready. But when will we be ready if we don’t
join it? […] If we need to be ready before we compete, when will we compete? We
compete as we get ready,” he said.
Several experts have expressed concern over Indonesia’s readiness for
free-trade agreements such as the upcoming the AEC, and particularly the TPP.
The AEC will combine the markets of the 10 ASEAN member states into one giant
bloc with a combined gross domestic product (GDP) of US$2.7 trillion.
Meanwhile, discussion over the TPP has also heated up following a statement by
President Joko “Jokowi” Widodo during his visit to Washington, DC, in which he
said Indonesia intended to join the US-led trade pact.
The TPP, which currently comprises 12 countries with a total population of
808.7 million and a combined GDP of $27.8 trillion, has sparked debate as
experts consider Indonesian industry not ready and that joining TPP goes
against the Constitution.
Bogor Institute of Agriculture (IPB) international trade economist Rina
Oktaviani said Indonesia still had several issues to deal with regarding free
trade, including certification for workers.
“Only some [line of occupations] have been certified. Sadly, not all. The
government should help tackle this issue,” she said.
The free flow of labor in the AEC also sets the ground for recognition of
education or professional qualifications across ASEAN, including for medical
practitioners and accounting services.
She also said the focus on exports of primary products also remained an issue,
as it should have moved to value-added products.
“As we have a huge population and rising middle class, we become merely a
market,” Rina said.
Current bilateral agreements with China and South Korea had shown trade
deficits, she said.
According to Trade Ministry data, Indonesia recorded a trade deficit of $9.1
billion with China from January to August this year, up 15.83 percent from the
same period last year, while its trade deficit with South Korea reached $416
million, a 25.9 percent increase from last year.
Meanwhile, Institute for Development on Economics and Finance (Indef) economist
Bhima Yudhistira Adhinegara said he was optimistic about the outlook of facing
the ASEAN single market, even though he held pessimism toward Indonesia’s
strength in the TPP.
“With the ASEAN single market, cooperation in infrastructure and maritime
sectors could be realized. We do need the funding for it, so we can take the
advantage of the long-term capital investment from it,” he said, adding that
the export of textile and crude palm oil would also see a surge.
However, he urged the government to protect “weaker” industry.
“It should be addressed in the seventh economic policy package. I think the
industry already got incentives, but it lacks the specific support for prone
sectors,” he said.
Economist Didik Rachbini said that the government should focus on facing the
AEC first before joining more pacts or agreements.
“ The TPP is OK, but its potential impacts should be measured, whether we join
it in 10 or 15 years,” he said.
Vice
President Jusuf Kalla has told people not to worry about free trade
pacts such as the ASEAN Economic Community (AEC) and Trans-Pacific
Partnership (TPP), saying that the government will ensure that people
benefit from the deals.
“Don’t worry about [trade] openness. It should be treated as a challenge, not as a hassle,” he said in a speech on Tuesday.
He
addressed people’s concerns over potential job competition in Indonesia
once the AEC became effective on Jan. 1, 2016, saying that competition
would not be an issue as wages were lower in Indonesia compared to other
ASEAN member states for certain professions.
“Don’t worry about
foreign workers taking jobs. When a foreign businessperson comes here,
100 new job opportunities open up,” Kalla added.
Kalla was
referring to the single market vision of the AEC, which includes the
free flow of skilled labor, in addition to the free flow of goods,
services and capital, among others.
The Vice President took a jab
at people who questioned the country’s readiness for the AEC and
controversy surrounding Indonesia’s intention to join the TPP.
“We
always say that we are not ready. But when will we be ready if we don’t
join it? […] If we need to be ready before we compete, when will we
compete? We compete as we get ready,” he said.
Several experts
have expressed concern over Indonesia’s readiness for free-trade
agreements such as the upcoming the AEC, and particularly the TPP.
The
AEC will combine the markets of the 10 ASEAN member states into one
giant bloc with a combined gross domestic product (GDP) of US$2.7
trillion.
Meanwhile, discussion over the TPP has also heated up
following a statement by President Joko “Jokowi” Widodo during his visit
to Washington, DC, in which he said Indonesia intended to join the
US-led trade pact.
The TPP, which currently comprises 12
countries with a total population of 808.7 million and a combined GDP of
$27.8 trillion, has sparked debate as experts consider Indonesian
industry not ready and that joining TPP goes against the Constitution.
Bogor
Institute of Agriculture (IPB) international trade economist Rina
Oktaviani said Indonesia still had several issues to deal with regarding
free trade, including certification for workers.
“Only some [line of occupations] have been certified. Sadly, not all. The government should help tackle this issue,” she said.
The
free flow of labor in the AEC also sets the ground for recognition of
education or professional qualifications across ASEAN, including for
medical practitioners and accounting services.
She also said the focus on exports of primary products also remained an issue, as it should have moved to value-added products.
“As we have a huge population and rising middle class, we become merely a market,” Rina said.
Current bilateral agreements with China and South Korea had shown trade deficits, she said.
According
to Trade Ministry data, Indonesia recorded a trade deficit of $9.1
billion with China from January to August this year, up 15.83 percent
from the same period last year, while its trade deficit with South Korea
reached $416 million, a 25.9 percent increase from last year.
Meanwhile,
Institute for Development on Economics and Finance (Indef) economist
Bhima Yudhistira Adhinegara said he was optimistic about the outlook of
facing the ASEAN single market, even though he held pessimism toward
Indonesia’s strength in the TPP.
“With the ASEAN single market,
cooperation in infrastructure and maritime sectors could be realized. We
do need the funding for it, so we can take the advantage of the
long-term capital investment from it,” he said, adding that the export
of textile and crude palm oil would also see a surge.
However, he urged the government to protect “weaker” industry.
“It
should be addressed in the seventh economic policy package. I think the
industry already got incentives, but it lacks the specific support for
prone sectors,” he said.
Economist Didik Rachbini said that the government should focus on facing the AEC first before joining more pacts or agreements.
“
The TPP is OK, but its potential impacts should be measured, whether we
join it in 10 or 15 years,” he said. - See more at:
http://www.thejakartapost.com/news/2015/11/19/ri-workforce-remain-competitive-asean.html#sthash.nRwpzdTZ.dpuf
