REPUBLIKA.CO.ID, BATAM -- Indonesia must serve as an ASEAN production base in the ASEAN Economic Community (AEC) commencing next year-end, so that it can survive the global competition, remarked vice presidential candidate Hatta Rajasa.
"There is no other choice for Indonesia but to become a production base rather than a market base for the ASEAN," Hatta Rajasa, who is the running mate of presidential candidate Prabowo Subianto, stated here on Tuesday.
Rajasa emphasized that Indonesia should not only serve as a target market for the ASEAN in the AEC but also as a production center that meets the needs of its domestic market, which is the largest in the ASEAN, so that it will not be flooded by foreign products.
Hatta stated that in order to serve as a production base, Indonesia should attract good investment. However, investors who have shown interest in the country still face several constraints.
The vice presidential candidate pointed out that three main constraints are often faced by investors: legal certainties, poor infrastructure, and low productivity.
Despite this fact, Hatta expressed optimism that Indonesia can serve as a production base for the ASEAN in line with the increasing investment and downstream industrial development.
In order to survive the ASEAN Economic Community competition, besides making Indonesia a production base, the government should also improve connectivity to reduce logistics costs.
Logistics costs tend to burden businesses and consumers. The implementation of the AEC must also be supported with equitable distribution of development, the vice presidential candidate reiterated.
"Small scale businesses should not be sidelined due to the implementation of the AEC, which will begin at the end of 2015," Rajasa added.
He said that the government should involve small businesses in the production sector, so that small-scale businessmen can support industries.
Hatta Rajasa paid a visit to Batam to meet his supporters and street vendors.
Indonesia will organize a free and democratic presidential election on July 9, 2014, which will be contested by only two pairs of presidential and vice presidential candidates: Prabowo Subianto-Hatta Rajasa and Joko Widodo (Jokowi)-Jusuf Kalla.
Prabowo Subianto is a retired military general and the chairman of Gerindra (Great Indonesia Movement) Party, while his running mate, Hatta Rajasa, is a former coordinating minister for economic affairs and the chairman of the National Mandate Party (PAN).
Jokowi is Jakarta's Governor and a cadre of the Indonesian Democratic Party of Struggle (PDIP), and his running mate, Jusuf Kalla (JK), is a former vice president and a senior politician of the Golkar Party.
The Jokowi-JK pair is supported by five political parties: the Indonesia Democratic Party Struggle (PDIP), the Nation Awakening Party (PKB), the People's Conscience Party (Hanura), the Justice and Indonesian Unity Party (PKPI), and the National Democrats Party (Nasdem) established by Surya Paloh, the owner of Metro TV and the Media Indonesia newspaper.
The Prabowo-Hatta pair is supported by Gerindra, PAN, the Prosperous Justice Party (PKS), the United Development Party (PPP), the Moon and Star Party (PBB), and the Golkar Party, whose current chairman is Aburizal Bakrie, the owner of TV One.
Ikuti Whatsapp Channel Republika