INDONESIA DEVELOPING THE MEA

INDONESIA DEVELOPING THE MEA

By

MICHAEL RENALDI

INFORMATION SYSTEM / 10151023

Many people might not know about MEA, MEA is the abbreviation of the ASEAN Economic Community which has a pattern integrate ASEAN ekonomu by forming a system of free trade or free trade between member countries of ASEAN. The members of ASEAN, including Indonesia has concluded an agreement of the ASEAN Economic Community. MEA is a term that is present in Indonesia but is basically the same as the AEC or the ASEAN ECONOMIC COMMUNITY.

For Indonesia, the MEA will be a good opportunity for trade barriers will tend to diminish even be non-existent. This will impact on increasing exports, which in turn will increase the GDP of Indonesia. On the other hand, emerging new challenges for Indonesia in the form of commodities traded homogeneity problems, for example for agricultural commodities, rubber, wood products, textiles, and electronics (Santoso, 2008). In this case the risk of competition will appear with the number of imported goods will flow in large quantities to Indonesia, which will threaten the local industry in competing with foreign products of much higher quality. This in turn will increase the trade deficit for the State Indonesia alone.

Formation of MEA is based on four pillars. First, make ASEAN as a single market and production center. Second, being a competitive economic region. Third, create a balanced economic growth, and the last pillar is the integration into the global economy. This union is intended to improve the competitiveness of the region, promote economic growth, reduce poverty and to improve the living standards of ASEAN. This integration is expected to build the ASEAN economies as well as directing the ASEAN as the backbone of the Asian economy.

On the investment side, this condition can create a climate that supports entry of Foreign Direct Investment (FDI), which can stimulate economic growth through technology development, job creation, human resource development (human capital) and easier access to the world market. From the aspect of employment, there is a tremendous opportunity for job seekers because it can be a lot of jobs available with the various needs of a diverse membership. In addition, access to go abroad in search of jobs easier and even could be without any particular obstacles. With the presence of this MEA event, Indonesia has the opportunity to take advantage of economies of scale in the country as a base gain. However, Indonesia still has many challenges and risks that would arise if the MEA has been implemented.

With the ASEAN Economic Community (AEC) can have impact on the increase in exports which will ultimately increase the GDP of Indonesia. In addition to the ASEAN Economic Community (AEC) there is a tremendous opportunity for job seekers because it can be a lot of jobs available with the various needs of a diverse membership. In addition, access to go abroad in search of jobs easier and even could be without any particular obstacles. MEA also be a good opportunity for entrepreneurs to find the best workers in accordance with the desired criteria. Indonesian workers can also work in ASEAN member countries freely and in accordance with the skills they have.

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