REPUBLIKA.CO.ID, JAKARTA -- Indonesia has no choice but to deal with the opportunities and challenges offered by the creation of the ASEAN Economic Community (AEC) in 2015, a Jakarta Chamber of Commerce and Industry (Kadin) official said.
"Make Indonesia prepared for the opportunities and challenges. Whether we are ready or not, the AEC need no longer be debated, because it has become a binding decision for ASEAN members," Fathya Feurazia said on Friday (24/10).
Speaking to journalists at a seminar on the AEC here, she discussed five challenges that Indonesia should deal with. The first challenge being the vulnerability of the global economic recovery and the downward trend in commodity prices.
"This can affect the performance of exports in the region," said the head of Jakarta Chamber of Commerce and Industry's International Trade Permanent Committee.
Besides that, the process of consolidation in the mining sector as a result of the implementation of the policy on managing short-term exports for mineral products may also place pressure on provinces' exports, she said.
The third challenge that Indonesia will face is related to the risk of the capacity of the nation's finances, Fathya said, adding that the fiscal capacity is no longer sufficient to accelerate the economy due to the burden of subsidized energy.
The potential rise of the inflation rate, caused by the world's increasing oil prices and the implications of policies taken to restrict the distribution of subsidized fuels, is the fourth challenge, she said.
The fifth challenge is related to the provinces' competitiveness, especially in the export of manufacturing products and their ability to win this competition, she said.
Considering these serious challenges, the government is expected to implement such strategies as strengthening the integration of the nation's economy, she said.
Mastering science and technology, supporting the rapid growth of innovation and creative business, improving human resources, and increasing consumption of domestic products must be carried out seriously, she said.
The government should also take advantage of market opportunities and synergy of ASEAN resources, strengthen domestic markets, develop entrepreneurship, increase exports and attract investors, noted Fathya.
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