RI digital economy shows double-digit growth, yet funding still subdued

RI digital economy shows double-digit growth, yet funding still subdued

The country's GMV is projected to grow by 13 percent to US$90 billion by the end of the year after previously expanding by only 6 percent last year.

<https://www.thejakartapost.com/business/2024/11/18/ri-digital-economy-shows-double-digit-growth-yet-funding-still-subdued.html>

Prabowo sees ‘no problem’ with joining OECD and BRICS

Prabowo sees 'no problem' with joining OECD and BRICS

During his state visit to the US, the President said Indonesia was looking at fully benefiting from any multilateral organizations it might join, and that seeking membership in both the OECD and BRICS was in the cards.

<https://www.thejakartapost.com/business/2024/11/14/prabowo-sees-no-problem-with-joining-oecd-and-brics.html>

Prabowo meets Biden, vows to work 'very hard' for Indonesia-US ties

Prabowo meets Biden, vows to work 'very hard' for Indonesia-US ties

President Prabowo Subianto met with US President Joe Biden at the White House on Tuesday and offered his congratulations to President-elect Donald Trump by phone during an official visit to Washington.

<https://www.thejakartapost.com/world/2024/11/13/prabowo-meets-biden-vows-to-work-very-hard-for-indonesia-us-ties.html>

Overtourism or balanced development? Bali airport plan sparks debate

Overtourism or balanced development? Bali airport plan sparks debate

Long Indonesia's premier tourist destination, Bali keeps getting all the attention, and ongoing government initiatives, rather than spread out development across the country, further cement the island's dominance, to the extent that many now worry about overtourism.

<https://www.thejakartapost.com/business/2024/11/09/overtourism-or-balanced-development-bali-airport-plan-sparks-debate.html>

A new journey in China-Indonesia relationship: Building a shared future

A new journey in China-Indonesia relationship: Building a shared future

We work closely in international and regional affairs, advancing China-ASEAN cooperation, maintaining peace and stability in the South China Sea, supporting the Palestinian national liberation cause and defending the common interests of the Global South.

<https://www.thejakartapost.com/opinion/2024/11/07/a-new-journey-in-china-indonesia-relationship-building-a-shared-future.html>

How Indonesia can become a semiconductor powerhouse

How Indonesia can become a semiconductor powerhouse

Building a semiconductor sector here promises not only economic growth but also the independence and security that come with controlling the technology that drives global innovation.

<https://www.thejakartapost.com/opinion/2024/11/06/how-indonesia-can-become-a-semiconductor-powerhouse.html>

Southeast Asia expands trade as a neutral hub in a divided world

Southeast Asia expands trade as a neutral hub in a divided world

Extra-regional trade to grow $1.2tn in 10 years but deficits with China soar  

<https://asia.nikkei.com/Spotlight/Datawatch/Southeast-Asia-expands-trade-as-a-neutral-hub-in-a-divided-world>

Indonesia's position on South China Sea ‘unchanged’, ministry says

Indonesia's position on South China Sea 'unchanged', ministry says

"We continue to have dialogue behind the scenes and other diplomatic efforts to address this issue proportionally with other countries," a Foreign Ministry spokesperson said.

<https://www.thejakartapost.com/world/2024/11/01/indonesias-position-on-south-china-sea-unchanged-ministry-says.html>

Singapore's quiet rise in the global 'deep tech' race

Singapore's quiet rise in the global 'deep tech' race

U.S.-China rivalry spurs investment in Asia's top startup ecosystem

<https://asia.nikkei.com/Spotlight/ASEAN-Money/Singapore-s-quiet-rise-in-the-global-deep-tech-race>

The thing about megaprojects

The thing about megaprojects

An energetic continuation of the Nusantara project following the government handover would assure investors that the country's national strategic projects are called "national" for a reason.

<https://www.thejakartapost.com/opinion/2024/10/28/the-thing-about-megaprojects.html>

With green camo and combat boots, Prabowo's new cabinet kicks off mountain retreat

With green camo and combat boots, Prabowo's new cabinet kicks off mountain retreat

Ministers and their deputies donned caps and camouflage outfits and stood in salute at a parade ground of a military academy in Central Java province to hear briefings from Prabowo, a former special forces commander.

<https://www.thejakartapost.com/indonesia/2024/10/25/with-green-camo-and-combat-boots-prabowos-new-cabinet-kicks-off-mountain-retreat.html>

Prabowo presents largest cabinet in decades

Prabowo presents largest cabinet in decades

Prabowo's Cabinet is the largest since 1966 when the nation's first President Sukarno formed an administration of 132 ministers in an extremely tense political situation after a failed 1965 coup. The so-called "Dwikora Cabinet 2" was dismissed a month later.

<https://www.thejakartapost.com/indonesia/2024/10/22/prabowo-presents-largest-cabinet-in-decades.html>

Prabowo pledges self-reliant future

Prabowo pledges self-reliant future

In his inaugural speech on Sunday, President Prabowo Subianto promised to make Indonesia a self-sufficient country in food and energy, as part of his larger goal to build a more prosperous nation.

<https://www.thejakartapost.com/indonesia/2024/10/21/prabowo-pledges-self-reliant-future.html>

Tourism is a tool of soft power

Tourism is a tool of soft power

A backpacker lodging in a bed-and-breakfast and eating at streetside warung should be welcomed just as warmly as a well-to-do family staying at a five-star hotel.

<https://www.thejakartapost.com/opinion/2024/10/18/tourism-is-a-tool-of-soft-power.html>

Jokowi has been a poor guardian of Indonesia's democracy

Jokowi has been a poor guardian of Indonesia's democracy

President to leave office with an insidious legacy that bodes ill for Prabowo's turn in power

<https://asia.nikkei.com/Opinion/Jokowi-has-been-a-poor-guardian-of-Indonesia-s-democracy>

Thanks Laos, welcome Malaysia

Thanks Laos, welcome Malaysia 

Malaysian Prime Minister Anwar Ibrahim has a vast knowledge of ASEAN, and we hope he can not only conclude the bloc's unfinished business but also create a more solid foundation for the group’s 2045 vision.

<https://www.thejakartapost.com/opinion/2024/10/14/thanks-laos-welcome-malaysia.html>

The Nobel Prize in Literature 2024 was awarded to Han Kang

The Nobel Prize in Literature 2024 was awarded to Han Kang

What an incredible news! Two thumbs up for Han Gang, the first Korean as well as Asian female author ever who won the Nobel Prize in Literature!

<https://www.nobelprize.org/prizes/literature/2024/han/interview/>

Jakarta election: Three newcomers fight in highly-popular contest

Jakarta election: Three newcomers fight in highly-popular contest

Against the backdrop of delays on the capital city relocation plan, around 8 million voters will head to Jakarta polling stations on Nov. 27 to elect a new governor, in a race where all candidates are relatively unpopular with the city's residents. The winner will lead the city in what might be its first five years of Jakarta's post-capital era.

<https://www.thejakartapost.com/indonesia/2024/10/07/jakarta-election-three-newcomers-fight-in-highly-popular-contest.html>

Foreign firms wary of more red tape from potential cabinet expansion

Foreign firms wary of more red tape from potential cabinet expansion

Talks of a potential cabinet expansion under the incoming government has left foreign businesses and experts leery of more red tape that could hamper Indonesia's ease of doing business as a result of unnecessary complexities in both regulatory and interinstitutional coordination.

<https://www.thejakartapost.com/business/2024/09/29/foreign-firms-wary-of-more-red-tape-from-potential-cabinet-expansion.html>

Indonesia walks out of UN general debate in protest of Israeli speech

Indonesia walks out of UN general debate in protest of Israeli speech

Indonesian delegates staged a walkout along with representatives from other countries as Israeli Prime Minister Benjamin Netanyahu delivered a speech at the 79th session of the United Nations General Assembly (UNGA), amid international condemnation of Israel’s military offensive in Gaza and Lebanon.

<https://www.thejakartapost.com/world/2024/09/29/indonesia-walks-out-of-un-general-debate-in-protest-of-israeli-speech.html>

Tensions simmer as campaign season for regional races begins

Tensions simmer as campaign season for regional races begins

As the official campaign period for the regional head elections commenced on Wednesday, tensions between competing factions were apparent, with outgoing President Joko “Jokowi” Widodo at the center of much of the contention.

<https://www.thejakartapost.com/indonesia/2024/09/25/tensions-simmer-as-campaign-season-for-regional-races-begins.html>

Indonesia's tale of 'two suns': Jokowi and Prabowo lock grip on politics

Indonesia's tale of 'two suns': Jokowi and Prabowo lock grip on politics

'Coercive' maneuvers ahead of regional elections undermine democracy, critics say

<https://asia.nikkei.com/Spotlight/Asia-Insight/Indonesia-s-tale-of-two-suns-Jokowi-and-Prabowo-lock-grip-on-politics>

Netherlands inks new deal to return Indonesian artifacts

Netherlands inks new deal to return Indonesian artifacts

The Netherlands has signed a new deal with Indonesia to return nearly 300 cultural objects this month, including several statues, with the newly repatriated artifacts slated for an exhibition to mark the National Museum's reopening in October, according to a museum official.

<https://www.thejakartapost.com/indonesia/2024/09/22/netherlands-inks-new-deal-to-return-indonesian-artifacts.html>

Nusantara opens to public

Nusantara opens to public

Following years of closed-door construction, the country's future capital of Nusantara in East Kalimantan is now accessible to the general public, with hundreds of visitors, including foreign tourists, having already visited the new city on Monday.

<https://www.thejakartapost.com/indonesia/2024/09/17/nusantara-opens-to-public.html>

Indonesian middle class: The victims of backburner policy

Indonesian middle class: The victims of backburner policy

The first focus is that the government must continue to create job opportunities and encourage foreign direct investment in labor-intensive sectors.

<https://www.thejakartapost.com/opinion/2024/09/17/indonesian-middle-class-the-victims-of-backburner-policy.html>

Gig economy threatens RI's human capital growth

Gig economy threatens RI's human capital growth

Indonesia's vision of achieving fast GDP growth to become a high-income economy by 2045 requires massive investment in human capital, but the rise of the gig economy could get in the way.

<https://www.thejakartapost.com/business/2024/09/10/gig-economy-threatens-ris-human-capital-growth.html>

Bali proposes two-year moratorium on hotel, nightclub construction

Bali proposes two-year moratorium on hotel, nightclub construction

Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said the moratorium could last five-10 years if the need arose, based on the government's assessment of current conditions. 

<https://www.thejakartapost.com/business/2024/09/09/bali-proposes-two-year-moratorium-on-hotel-nightclub-construction.html>

Indonesia's economy suffers from 'long COVID' as middle class shrinks

Indonesia's economy suffers from 'long COVID' as middle class shrinks

Key growth driver has yet to recover from pandemic, statistics agency says

<https://asia.nikkei.com/Economy/Indonesia-s-economy-suffers-from-long-COVID-as-middle-class-shrinks>

Interfaith groups welcome Pope Francis with delight

Interfaith groups welcome Pope Francis with delight

Various religious organizations in Indonesia welcome Pope Francis to Jakarta with messages of hope that the papal visit, the first in over three decades, will provide an example for interreligious harmony in the country and also the world.

<https://www.thejakartapost.com/indonesia/2024/09/04/interfaith-groups-welcome-pope-francis-with-delight.html>

Indonesia vows to 'defend interests of Global South' at Africa forum

Indonesia vows to 'defend interests of Global South' at Africa forum

Jokowi aims for $3.5bn in business deals at 3-day gathering in Bali

<https://asia.nikkei.com/Politics/International-relations/Indonesia-vows-to-defend-interests-of-Global-South-at-Africa-forum>

Indonesia, Australia ink 'historic' defense agreement

Indonesia, Australia ink 'historic' defense agreement

First revealed during Defense Minister Prabowo Subianto's visit to Canberra earlier this month, the Indonesia-Australia Defense Cooperation Agreement (DCA) is finally signed after over 30 bilateral meetings since March of last year.

<https://www.thejakartapost.com/world/2024/08/29/indonesia-australia-ink-historic-defense-agreement.html>

Google, Meta, TikTok, X Required to Sign Integrity Pact Against Online Gambling

Google, Meta, TikTok, X Required to Sign Integrity Pact Against Online Gambling

Indonesia has mandated that 18,232 private electronic system providers (PSEs), including major firms like Google, Meta, TikTok, and X, sign an integrity pact to combat online gambling

<https://jakartaglobe.id/tech/google-meta-tiktok-x-required-to-sign-integrity-pact-against-online-gambling>

Indonesia hopes startups play big role in free school lunch plan

Indonesia hopes startups play big role in free school lunch plan

Gojek drivers participate in trial, agritech company keen to procure ingredients

<https://asia.nikkei.com/Business/Startups/Indonesia-hopes-startups-play-big-role-in-free-school-lunch-plan>

Indonesia's new capital Nusantara attracts increased investor interest

Indonesia's new capital Nusantara attracts increased investor interest

Prabowo asserts support for project amid private sector doubts

<https://asia.nikkei.com/Business/Business-trends/Indonesia-s-new-capital-Nusantara-attracts-increased-investor-interest>

Government ramps up preparation for first Independence Day in Nusantara

Government ramps up preparation for first Independence Day in Nusantara

As Independence Day inches closer, the government is ramping up its preparations for the simultaneous celebrations in Jakarta and the Nusantara Capital City (IKN) in East Kalimantan, spending more money than in previous years.

<https://www.thejakartapost.com/indonesia/2024/08/11/government-ramps-up-preparation-for-first-independence-day-in-nusantara.html>

Informality in Indonesia and middle-income trap

Informality in Indonesia and middle-income trap

Before the COVID-19 pandemic, Indonesia progressed positively by driving down workers in the informal sector from 65 percent in 2007 to 56 percent in 2019. The tide has turned because of the pandemic, and as a result, the number of informal workers jumped to almost 80 million workers, or 59 percent of total employment in 2023.

<https://www.thejakartapost.com/business/2024/08/07/informality-in-indonesia-and-middle-income-trap.html>

Indonesia's economy grew 5.05% in Q2

Indonesia's economy grew 5.05% in Q2

Southeast Asian nation's GDP expands as holiday demand, foreign tourists spur growth

<https://asia.nikkei.com/Economy/Indonesia-s-economy-grew-5.05-in-Q2>

Indonesia takes home first medal in Paris following shuttler's withdrawal

Indonesia takes home first medal in Paris following shuttler’s withdrawal

The bronze was Indonesia's first medal at this year's Olympics. It was also the country's first in women's singles badminton since the 2008 Beijing Olympics, where Maria Kristin Yulianti took the bronze.

<https://www.thejakartapost.com/sports/2024/08/04/indonesia-takes-home-first-medal-in-paris-following-shuttlers-withdrawal.html>

Indonesia's bid to create family office hub in Bali is a tough ask

Indonesia's bid to create family office hub in Bali is a tough ask

Emulating Singapore's gold standard requires investment and strategic reforms

<https://asia.nikkei.com/Opinion/Indonesia-s-bid-to-create-family-office-hub-in-Bali-is-a-tough-ask>

eFishery layoffs driven by lack of domestic demand, analysts say

eFishery layoffs driven by lack of domestic demand, analysts say

Homegrown aquaculture unicorn eFishery has laid off an undisclosed portion of its workforce and announced a shift in focus.

<https://www.thejakartapost.com/business/2024/07/30/efishery-layoffs-driven-by-lack-of-domestic-demand-analysts-say.html>

Southeast Asia IPO fundraising down 60% in first half as Indonesia slumps

Southeast Asia IPO fundraising down 60% in first half as Indonesia slumps

Higher interest rates dampen listings in region with fewer big-ticket debuts.

<https://asia.nikkei.com/Business/Markets/IPO/Southeast-Asia-IPO-fundraising-down-60-in-first-half-as-Indonesia-slumps>

Golden visa only for ‘good quality travelers’, says Jokowi

Golden visa only for 'good quality travelers', says Jokowi

The long-term visa scheme, called the golden visa, is only meant for "good quality travelers", said President Joko "Jokowi" Widodo during the policy's launch on Thursday, as he warned against allowing newcomers who bring no benefits or might pose a threat to national security.

<https://www.thejakartapost.com/indonesia/2024/07/25/golden-visa-only-for-good-quality-travelers-says-jokowi.html>

Jokowi cites 'heavy rain' behind cancellation to move to IKN

Jokowi cites 'heavy rain' behind cancellation to move to IKN

President Joko "Jokowi" Widodo said the persistent rain in the Nusantara Capital City (IKN) in East Kalimantan had hindered his plan to work at the upcoming capital as early as this month.

<https://www.thejakartapost.com/indonesia/2024/07/18/jokowi-cites-heavy-rain-behind-cancellation-to-move-to-ikn.html>

Birth of ‘Zombie Village’ in Jakarta due to recurring floods

Birth of ‘Zombie Village’ in Jakarta due to recurring floods

Amid the hustle and bustle of the Cililitan Wholesale Center (PGC) in East Jakarta lies an abandoned settlement known as Kampung Zombie.

<https://www.thejakartapost.com/indonesia/2024/07/19/birth-of-zombie-village-in-jakarta-due-to-recurring-floods.html>

Jokowi appoints Prabowo's nephew as Indonesia vice finance minister

Jokowi appoints Prabowo's nephew as Indonesia vice finance minister

Incoming president's family likely to gain prominent roles in new administration

<https://asia.nikkei.com/Politics/Jokowi-appoints-Prabowo-s-nephew-as-Indonesia-vice-finance-minister>

Jakarta home rentals surge, buying falls in Q1 2024

Jakarta home rentals surge, buying falls in Q1 2024

More and more Jakartans were opting to rent houses in the first quarter of the year amid high home prices, interest rates and inflation, according to several leading property consultancies.

<https://www.thejakartapost.com/business/2024/07/16/jakarta-home-rentals-surge-buying-falls-in-q1-2024.html>

Moving forward together toward Golden Indonesia 2045

Moving forward together toward Golden Indonesia 2045

Japan promotes cooperation on not only infrastructure but also improvements in living standards, environmental measures, reduction in disparities and human resource development.

<https://www.thejakartapost.com/opinion/2024/07/15/moving-forward-together-toward-golden-indonesia-2045.html>

In Indonesia and India, labor-starved Japanese hotels scout talent

In Indonesia and India, labor-starved Japanese hotels scout talent

Job fairs also planned in Vietnam, Philippines, Sri Lanka, Nepal as tourism booms

<https://asia.nikkei.com/Spotlight/Japan-immigration/In-Indonesia-and-India-labor-starved-Japanese-hotels-scout-talent>

Too early to celebrate

Too early to celebrate

According to international institutions, Indonesia's per capita GDP(nominal) is expected to record $5,271 in 2024. This figure is the 114th highest among the surveyed nations~

<https://www.thejakartapost.com/opinion/2024/07/10/too-early-to-celebrate.html>

Indonesia's EV drive faces geopolitical headwinds

Indonesia's EV drive faces geopolitical headwinds

One thought I'd like to add is the tug-of-war confrontation of domestic political bigwigs in the midst of the leadership change in 10 years~

<https://asia.nikkei.com/Opinion/Indonesia-s-EV-drive-faces-geopolitical-headwinds>

Indonesia launches first EV battery plant

Indonesia launches first EV battery plant

According to Maeil Business Newspaper, Hyundai Motor Group Chairman, Chung Eui-sun stressed, "The completion of the Indonesian battery cell plant is the fruit of the cooperation between Hyundai Motor Group and Indonesia."

<https://www.thejakartapost.com/business/2024/07/03/indonesia-launches-first-ev-battery-plant.html>

High Time for Digital Cooperation between Korea and Indonesia(6)

High Time for Digital Cooperation between Korea and Indonesia

There are yet pending issues to tackle in startup fever in Indonesia. Poor IT infrastructures in non-urban areas, shortage of high-skilled workforces and widespread financial illiteracy have taken roots in many parts of the nation. This is where digital cooperation between Korea and Indonesia can take a meaningful step forward. 

What Korea has experienced in the last 20 years in becoming a global digital leader can be valuable asset to the Indonesian journey heading for the digital society. Beginning with promising fields including the fintech and the education, now is the right time for young startups in both countries to join hands with each other and hit the digital road hard.

High Time for Digital Cooperation between Korea and Indonesia(5)

High Time for Digital Cooperation between Korea and Indonesia

As the world's biggest archipelago with 17,000 or so islands, Indonesia has been comprehended to have little choices but to rely upon online or mobile platforms powered by ICT (Information and Communications Technology) to have more people advantaged from the convenience and efficiency of the digital economy. 

In this regard, starting from the e-commerce field followed by sectors like the co-working space and the online travel, young and ambitious startups have been playing prime roles in taking initiatives to bring digital technology into reality. What COVID-19 has showed to the Indonesian society has served a wake-up call to this irreversible trend of the digital Indonesia.

High Time for Digital Cooperation between Korea and Indonesia(4)

High Time for Digital Cooperation between Korea and Indonesia

It seems that Indonesia has caught eyes of the global investment experts more actively than Singapore in the regional competition of startup waves. The potential for growth in the country's digital industry has made it attractive to investors and entrepreneurs alike. 

Actually, a growing number of venture capitals and startup accelerators have sensed exceptional business opportunities of Indonesia especially in terms of the market size. This favorable viewpoint has led to produce thousands of startups and 5 unicorns across the country. Against this background, it may not be too much to say that Indonesia will remain as a critical pillar of the regional digital ecosystem.

High Time for Digital Cooperation between Korea and Indonesia(3)

High Time for Digital Cooperation between Korea and Indonesia

It is Singapore and Indonesia which has been spotlighted the most for the startup frenzy in Southeast Asia. The two countries have been in the forefront of the development of the digital economy in the region. 

Singapore has been recognized to incubate the advent of the digital era with its strong commitment to innovation while Indonesia has been viewed to beef up the digital fever based upon its presence as the most sizeable playground. The fact that 9 out of 11 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the ASEAN digital economy.

High Time for Digital Cooperation between Korea and Indonesia(2)

High Time for Digital Cooperation between Korea and Indonesia

In fact, startup boom deserves named as one of the hot issues in Southeast Asia since mid-2010s. Startup markets across Southeast Asia have been rapidly gaining momentums. Local leaders of the digital economy such as Grab in Singapore which acquired the Southeast Asian business unit of Uber in 2018 have been acclaimed for changing the conventional industrial map in the region.

Consequently, as many as 11 unicorns, privately held startup companies valued at over $1 billion, have emerged from various industries such as the mobility, the e-payment and the online game.

High Time for Digital Cooperation between Korea and Indonesia(1)

High Time for Digital Cooperation between Korea and Indonesia

Indonesia, the largest economy in ASEAN (The Association of Southeast Asian Nations), is one of the key counterparts of the New Southern Policy initiated by the Korean government.  Bilateral relations between Korea and Indonesia have been continuously improved and were finally elevated to a special strategic partnership in 2017. 

Now the two countries have their 75th Independence Day, Korea on Aug 15th and Indonesia on Aug 17th, come just around the corner. Digital cooperation spearheaded by startups in both countries can be a new topic of the time when the deadly COVID-19 pandemic has further spurred the necessity of the digitalization of the Indonesian society.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(51)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

I can't help agreeing this view and admitting drawbacks of my research to some extent. In this context, I will try to allocate more time and energy in listening to various opinions of the related parties in Singapore and Indonesia to have my research upgraded. 

Needless to say, plentiful hands-on experiences to monitor real-time developments of the AEC in the two countries would provide my succeeding papers constantly looking into the relation between Singapore and Indonesia with more balanced and up-to-date insights.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(50)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

This is why extra active commitments of the Indonesian government to the AEC and ongoing engagement of the Singaporean government for the success of the AEC remains essential at this critical juncture. 

Although local perspectives on the AEC mostly extracted from the publications cited above consist of primary sources for my argument, this paper may be potentially exposed to criticisms indicating lack of real comments on the spot.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(49)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Perspectives and following readiness of the two countries toward the era of the AEC, though not entirely, are necessary to keep paced with each other. Otherwise, outputs of the more sophisticated regional economic integration may be distributed in a one-sided fashion. 

If Singapore carries on being overwhelmingly outshined along with the AEC, political and diplomatic relation between the two countries may be subject to be worsened accordingly.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(48)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Private sectors in Singapore, especially SMES have been aggressive in broadening their horizons across the region to excavate fresh growth chances. However, the future of the AEC may be overshadowed unless Indonesia fails to utterly nudge itself to the AEC. 

Then rosy pictures on the AEC where skilled labor forces in various fields will freely cross the borders of Southeast Asia may turn out a wishful thinking. This even holds true to the relationship between Singapore and Indonesia.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(47)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Two countries have represented the ASEAN in two essential ways. While Singapore tops the region with its world-level economic status, Indonesia covers alarmingly about 40% of the overall ASEAN economy. 

Therefore, both countries have been immensely highlighted as key stakeholders of the newly-born economic community. In general, Singapore is appraised more prepared to browse the age of the AEC than Indonesia.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(46)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

The economic clout will be increasingly strengthened if the ASEAN even succeeds in fully actualizing the AEC. As a result, the influence of the ASEAN on the regional security and political issues will be also growing bigger. 

Under this circumstance, hopes are higher than ever that the beginning of the AEC will serve a drastic opportunity to create a new landscape for the 21st century in the world. In this sense, the roles of Singapore and Indonesia can't be overemphasized when the era of the AEC starts to be vigorously unfolded.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(45)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Along with Africa and South America, the ASEAN has been looked down on as a symbol of an underdeveloped area. Thus, major powers encompassing America, China and the EU would remain invincible if the ASEAN members try to compete with them individually. 

However, situation would be different if joint efforts of the 10 countries to confront superpowers is designed and implemented. The countries will be surely observing their confidence built up step by step.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(44)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

For instance, IMF's statistics proves that Brunei, an oil-producing country was shined with its per capita GDP of 33,200 USD in 2017 while Cambodia, one of the poorest countries in the region only recorded per capita GDP of 1,390 USD during the same period. 

In this realistic angle, it is no wonder that a tough itinerary is forecasted on the way to the substantial realization of the AEC. In spite of the skepticism surfaced, the importance of the birth of a sizable single market shouldn’t be underestimated.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(43)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

What will be the ASEAN like in the time of the AEC? It may be too early to predict the AEC in 10-20 years when the AEC just pulled up its anchor. Even short-term outlook is not an easy thing to challenge as emerging markets with high volatility comprise most parts of the area. 

The question is whether the AEC can evolve itself into something beyond a mere economic agreement body or not. Above all things, doubts are cast upon the considerable economic gap among the member countries.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(42)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

To cope with the new economic environment and to survive the unavoidable race with Singapore, the Indonesian government shouldn't make little efforts to enhance overall capabilities of its industries, SMEs in particular. In doing so, the AEC will be more likely shaped up evenly to both Singapore and Indonesia. 

Then relationship between the two countries may maintain the status quo, at least and the neighbors will rather seriously devote themselves to seeking mutual prosperity across the region.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(41)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

In the meantime, there stands a possibility that Singapore's readiness on edge for the AEC powered by internationally-claimed competitiveness may impose burdens on Indonesia. Severe damages on the economic interests of Indonesia caused by Singaporean enterprises, if repeatedly happens, may spark political conflicts between the two countries. 

This is in line with my stance that Indonesia, as a whole, needs to pay attention to the inauguration of the AEC in a more desperate manner.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(40)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Nevertheless, overall perception and response of Indonesia is still assessed lagging behind those of Singapore. This could explain why governmental attention and consideration for non-major players in the business field including SMEs would be top priority for Indonesia to pave the way to the AEC. 

Figures from Statistics Indonesia, a central government agency have it that Indonesian SMEs have undertaken as much as 60% of the GDP as a backbone of the national economy.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(39)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Needless to say, Indonesia hasn't been sitting idle. As the largest market in the region, Indonesia has braced for this budding economic environment in its own way. The fact that Indonesia has already implemented a competition law would be an exemplary movement.

As a matter of fact, small number of countries in the region has regulated fair trades by adopting a competition law like Indonesia. On top of that, larger local firms such as traditional family businesses are also deeming the AEC as a valuable chance to miss for their future growth engines.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(38)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Besides, awareness of the importance of the AEC is not only high in the business sector but also considerably widespread among the general public in Singapore. This phenomenon may be associated with the unparalleled development career of the Singaporean economy. 

Actually, Singapore has been spotlighted to reap the biggest pie of the AEC as the United States has benefited the most in the time of the North American Free Trade Agreement (NAFTA).

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(37)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

When it comes to the details of the perception of and the response to the AEC, however, Singapore is often evaluated ahead of Indonesia by and large. Proactive approach of Singaporean SMEs aiming the AEC may demonstrate Singapore's skyrocketed anticipation for the unprecedented common market. 

Most experts have been in the same boat that the AEC may serve Singaporean SMEs armed with regional competitiveness well to navigate tremendous business momentums in one single market with 650 million populations.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(36)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

In addition, concerns of SMEs especially in Indonesia that they may be isolated from the far-reaching age of the AEC are getting greater. 

In spite of such negative voices raised, the Singaporean and Indonesian governments have been regarded to take necessary steps to realize their commitments to the AEC as ambitiously set out in the AEC Blueprint.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(35)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

As identified above, Singapore and Indonesia may have been claimed to pour continuous efforts to deal with the era of the AEC. Both countries have concentrated on the emergence of the AEC and the impacts that the new regional economic community would bring to them. 

Nevertheless, there are yet complaints especially from the private sectors in both countries that incomplete information sharing and insufficient corporate engagement on the core agendas of the AEC has been left shortages.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(34)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Major players already have a good and comprehensive understanding about the AEC. The major players are large companies whose activities are related to export-import, foreign companies, and foreign affiliates or local companies that are involved in international production networks. 

In addition, in general, information concerning the AEC fails to reach most members of the business community largely due to the fact that both government and the ASEAN secretariat do not have a systematic mechanism to disseminate information.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(33)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Indonesia is one of the few countries in ASEAN that has promulgated a competition law and has established an independent agency in charge of competition policy – the Commission for the Supervision of Business Competition. 

Larger firms tend to have better knowledge about the existing FTAs and, in general, are more optimistic than smaller ones. This is true also with regard to the AEC.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(32)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

To its credit the Indonesian Government has taken the necessary steps to incorporate its commitments to the AEC into the country's national economic development programs. 

Ever since Indonesia initiated trade liberalization in the mid-1980s, it has significantly reduced tariff rates, more or less across the board. In 2007, Indonesia introduced a new investment law aimed at making Indonesia more attractive to foreign investors.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(31)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

Going forward, Singapore will focus on capacity building and human resource development in the ASEAN countries to help them prepare for the 2015 deadline. Results of SWOT analysis on the Singapore's perception of and response to the formation of the AEC can be diagramed as below. 

According to the papers by Hadi Soesastro and Raymond Atje (p. 72-77.) and Widdi Mugijayani and Pratiwi Kartika (p. 210-212.), Indonesia's major perception of and response to the formation of the AEC can be summarized as below.

Inauguration of the AEC and Its Impacts on Relation between Singapore and Indonesia(30)

Comparative Research on Relationship of Singapore and Indonesia in the AEC Aspect

The larger players, being more experienced, point out that whilst the ASEAN agreements are being help up as the way forward, delays or non-implementation of signed agreements are too common occurrences. 

A more basic reaction from businesses is tied to the process itself of drawing up the ASEAN economic agreements. An underlying concern is that the agreements are concluded without the involvement of or consultation with the private sector.