AEC 2015 Raises Further Concerns

Fitri Novia Heriani, Robert Sidauruk

In 2015, Indonesia will enter ASEAN Economic Community (AEC), which integrates economic activities within Southeast Asian countries. AEC will establish free movement of goods, services, investment, skilled labor, as well as free flow of capital.

AEC will be a different framework from the system adopted by the European Union (EU). That is, while EU members are bound by the management of EU’s economic policies, each member of ASEAN will retain its sovereignty in the economic policy-making process.

Dewi Fortuna Anwar, Deputy Political Secretary for VP Office, addressed this difference between AEC and EU and explained that AEC implementation will not imitate EU system.

“We can only use it as a reference,” said Dewi in Jakarta, Thursday (18/4),.

However, Dewi explained her concern regarding AEC. According to Dewi, Indonesia would have to partially relinquish certain sovereignty upon entering AEC when making economic policies because it will be influenced by collective decisions with other ASEAN members.

Furthermore, according to Dewi, other ASEAN members are also reluctant to partially relinquish their sovereignty in the policy-making process.

In other words, the collective decision might be toothless, since it needs strong political will to implement. It differs from EU, where all EU members are obliged to implement any policy that is rendered by the related EU institution.

Meanwhile, Dorodjatun Kuntjoro, economics professor at Universitas Indonesia, explained that Indonesia is facing another problem in implementing AEC.

He said that AEC’s fundamental agreement might be rejected by the House of Representatives. For instance, recognition of professional qualifications could pose difficulties due to lack of qualified universities, Dorodjatun concluded.

(hot/jt)

Fitri Novia Heriani, Robert Sidauruk

In 2015, Indonesia will enter ASEAN Economic Community (AEC), which integrates economic activities within Southeast Asian countries. AEC will establish free movement of goods, services, investment, skilled labor, as well as free flow of capital.

AEC will be a different framework from the system adopted by the European Union (EU). That is, while EU members are bound by the management of EU’s economic policies, each member of ASEAN will retain its sovereignty in the economic policy-making process.

Dewi Fortuna Anwar, Deputy Political Secretary for VP Office, addressed this difference between AEC and EU and explained that AEC implementation will not imitate EU system.

“We can only use it as a reference,” said Dewi in Jakarta, Thursday (18/4),.

However, Dewi explained her concern regarding AEC. According to Dewi, Indonesia would have to partially relinquish certain sovereignty upon entering AEC when making economic policies because it will be influenced by collective decisions with other ASEAN members.

Furthermore, according to Dewi, other ASEAN members are also reluctant to partially relinquish their sovereignty in the policy-making process.

In other words, the collective decision might be toothless, since it needs strong political will to implement. It differs from EU, where all EU members are obliged to implement any policy that is rendered by the related EU institution.

Meanwhile, Dorodjatun Kuntjoro, economics professor at Universitas Indonesia, explained that Indonesia is facing another problem in implementing AEC.

He said that AEC’s fundamental agreement might be rejected by the House of Representatives. For instance, recognition of professional qualifications could pose difficulties due to lack of qualified universities, Dorodjatun concluded.

(hot/jt)

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