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Ada Pertanyaan? Hubungi Kami Ari Pramuditya, Kartini L Makmur
Performers during ASEAN Day 2015 in Jakarta. Photo by: ASEAN Secretariat
Hikmahanto Juwana, a professor of International Law at the University of Indonesia, delivered a speech at the recent 91st Anniversary of Indonesian Law Higher Education event, during which he suggested that Indonesia could propose a deferment of the upcoming ASEAN Economic Community (AEC). Mr. Juwana stated that international law allowed for such a deferment, despite the fact that there was no clause in the AEC agreement document which specifically related to any such postponement.
Mr. Juwana further stated during the event, which was held on Wednesday, 28 October 2015, that the Indonesian government could request such a rescheduling owing to the fundamental change that had taken place in the country’s circumstances. In the domain of international law, a deferral such as this is known as rebus sic stantibus.
The professor explained that if an agreement contains no provision or regulation that prohibits something, then it does not mean that it is necessarily forbidden. Such a move would be bound to spur academic debate, however Mr. Juwana said that there was still a chance for the Indonesian government to defer the implementation of the AEC.
According to Mr. Juwana however, the government should obviously still attempt to ready itself as regards the implementation of several aspects of the AEC. Firstly, the government should socialize and publicize information pertaining to the AEC among the relevant implementing authorities, as well as Indonesian society as a whole. Secondly, an assessment needs to be undertaken as to whether Indonesian labor is sufficiently well prepared to deal with the inevitable competition that the AEC will lead to, both domestically and in the international arena.
Mr. Juwana asserted that an urgent evaluation was needed in order to ascertain whether Indonesia’s business community was ready to compete with foreign businesses on Indonesian soil. Mr. Juwana also sought to remind the public that the Indonesian business community also included small- and micro-scale businesses.
Such businesses should not be allowed to fail when they inevitably end up engaged in heated competition to exploit their own market, he warned.
Additionally, it is important to assess whether the Indonesian business community will be able to penetrate markets in other ASEAN countries. Juwana also criticized the investment climate in Indonesia. According to him, Indonesia is not yet ready to face the AEC, when looked at from the perspective of the country’s bureaucracy, as well as the national and regional legal frameworks which will be transformed by such a transnational opening up of markets.
Mr. Juwana explained that, “It should be understood that deferring the AEC does not mean permanently rejecting the idea of an AEC. The Southeast Asian region, including Indonesia, was undergoing a period of rapid economic growth when the AEC was formulated. However, the economic climate is quite different now.”
During his address, Mr. Juwana set out a number of arguments that could be made by the government in order to postpone the implementation of the AEC. According to the professor, Indonesia has experienced a number of economic crises in recent years.
Moreover, Indonesia is currently in the middle of its so-called reformation (reformasi) period. In Mr. Juwana’s view, Indonesia has experienced a period of remarkable and rapid transformation across all fields, economic, political, legal, and social, since 1998.
For example, there has been a fundamental shift in the distribution of power across the political spectrum, with much power being devolved across the regions. The government is thus no longer Indonesia’s sole decision-making authority and the people’s aspirations have become increasingly influential.
Regional autonomy has resulted in fundamental changes to Indonesian politics, as well as a number of other fields, and the country is no longer the same nation that it was during the years before 1998, Mr. Juwana stated.
According to Mr. Juwana, a decision must be made by the government. If an accurate analysis demonstrates that the AEC could harm the national interest, then the government should unequivocally ask for an AEC postponement. Such a request would also prove that the country was in a strong bargaining position.
"It would prove that the AEC could not exist without Indonesia, and any AEC would not be nearly so attractive in the eyes of the international community if Indonesia was not a participant," Juwana concluded.
(sp)
Ari Pramuditya, Kartini L Makmur
Performers during ASEAN Day 2015 in Jakarta. Photo by: ASEAN Secretariat
Hikmahanto Juwana, a professor of International Law at the University of Indonesia, delivered a speech at the recent 91st Anniversary of Indonesian Law Higher Education event, during which he suggested that Indonesia could propose a deferment of the upcoming ASEAN Economic Community (AEC). Mr. Juwana stated that international law allowed for such a deferment, despite the fact that there was no clause in the AEC agreement document which specifically related to any such postponement.
Mr. Juwana further stated during the event, which was held on Wednesday, 28 October 2015, that the Indonesian government could request such a rescheduling owing to the fundamental change that had taken place in the country’s circumstances. In the domain of international law, a deferral such as this is known as rebus sic stantibus.
The professor explained that if an agreement contains no provision or regulation that prohibits something, then it does not mean that it is necessarily forbidden. Such a move would be bound to spur academic debate, however Mr. Juwana said that there was still a chance for the Indonesian government to defer the implementation of the AEC.
According to Mr. Juwana however, the government should obviously still attempt to ready itself as regards the implementation of several aspects of the AEC. Firstly, the government should socialize and publicize information pertaining to the AEC among the relevant implementing authorities, as well as Indonesian society as a whole. Secondly, an assessment needs to be undertaken as to whether Indonesian labor is sufficiently well prepared to deal with the inevitable competition that the AEC will lead to, both domestically and in the international arena.
Mr. Juwana asserted that an urgent evaluation was needed in order to ascertain whether Indonesia’s business community was ready to compete with foreign businesses on Indonesian soil. Mr. Juwana also sought to remind the public that the Indonesian business community also included small- and micro-scale businesses.
Such businesses should not be allowed to fail when they inevitably end up engaged in heated competition to exploit their own market, he warned.
Additionally, it is important to assess whether the Indonesian business community will be able to penetrate markets in other ASEAN countries. Juwana also criticized the investment climate in Indonesia. According to him, Indonesia is not yet ready to face the AEC, when looked at from the perspective of the country’s bureaucracy, as well as the national and regional legal frameworks which will be transformed by such a transnational opening up of markets.
Mr. Juwana explained that, “It should be understood that deferring the AEC does not mean permanently rejecting the idea of an AEC. The Southeast Asian region, including Indonesia, was undergoing a period of rapid economic growth when the AEC was formulated. However, the economic climate is quite different now.”
During his address, Mr. Juwana set out a number of arguments that could be made by the government in order to postpone the implementation of the AEC. According to the professor, Indonesia has experienced a number of economic crises in recent years.
Moreover, Indonesia is currently in the middle of its so-called reformation (reformasi) period. In Mr. Juwana’s view, Indonesia has experienced a period of remarkable and rapid transformation across all fields, economic, political, legal, and social, since 1998.
For example, there has been a fundamental shift in the distribution of power across the political spectrum, with much power being devolved across the regions. The government is thus no longer Indonesia’s sole decision-making authority and the people’s aspirations have become increasingly influential.
Regional autonomy has resulted in fundamental changes to Indonesian politics, as well as a number of other fields, and the country is no longer the same nation that it was during the years before 1998, Mr. Juwana stated.
According to Mr. Juwana, a decision must be made by the government. If an accurate analysis demonstrates that the AEC could harm the national interest, then the government should unequivocally ask for an AEC postponement. Such a request would also prove that the country was in a strong bargaining position.
"It would prove that the AEC could not exist without Indonesia, and any AEC would not be nearly so attractive in the eyes of the international community if Indonesia was not a participant," Juwana concluded.
(sp)