Indonesia optimistic on possibilities of single market

The 10-member bloc signed the Kuala Lumpur Declaration on the Establishment of the Asean Community as the 27th Asean Summit wrapped up in Malaysia.

Citing the various scorecards of other Asean members, President Joko Widodo said Indonesia’s existing scorecard of 94.1 per cent of implementation from the 506 action lines in the AEC blueprint showed the country’s maximum effort to meet the requirements.

“We must be able to seize the opportunities [from the AEC]. Don’t expect something without first trying. All must be fought for. That is our challenge,” he said.

Joko said he had ordered his ministers to identify which Indonesian products were highly competitive on the regional market and to push those products on to the front line.

“We have to be smart with taking our chances. We cannot afford to sit back and get something out of [the community]; everything is up for grabs,” he said.

Investment Coordinating Board (BPKM) chief Franky Sibarani said the government would not rest on its laurels after having achieved a high score in the implementation of action lines. Franky said there was still a lot to be prepared before Indonesia officially entered the regional economic community. He said the government would focus on a way to attract investment into Indonesia, which would allow it to become a venerable production base that could fulfil demand within and beyond the Asean market.

Franky also emphasised the importance of the services sector as one of the main pillars of economic growth in most of the Asean region and in the Asia Pacific Economic Cooperation (Apec) forum. He said the government was reviewing a number of presidential regulations related to the positive investment list (DNI), thus opening the country up to foreign investment.

Amid doubts that not all people would receive the benefits from the implementation of the single market, Joko said it was the role of all state leaders to ensure the AEC would benefit everyone inclusively.

With the formation of the AEC, dubbed the largest economic integration treaty among developing countries, the 10-member bloc aims to become a single market and production base. It has in effect removed taxes through the Asean Trade in Goods Agreement.

Asean expert Makmur Keliat from the University of Indonesia remained optimistic on the formalisation of the AEC, although he warned that the regional community must commit to a shared social agenda that would support the economic integration process so that all sectors would be able to enjoy the benefits of the regional community.

When a number of countries converge in a regional platform, he said, the flow of investment and capital tends to increase.