Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(51)

Comparative Study on the Perception and Response of Singapore and Indonesia

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

I can't help agreeing this view and admitting drawbacks of my research to some extent. 

Advent of the Era of the AEC and Its Impact on Singapore and Indonesia(19)

Comparative Study on the Perception and Response of Singapore and Indonesia

As a result, Singapore and Indonesia has enjoyed the benefits of the ASEAN economic integration over the years. Singapore has been actively expanding its business domain all over the region with its service-oriented policy initiatives. 

For Indonesia, fruits of strategic focuses on economy of scale have been harvested across the secondary industry. The ASEAN Secretariat report cited above illustrates two cases as evidences of commercial viability in the age of the AEC. 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(33)

Comparative Study on the Perception and Response of Singapore and Indonesia

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. 

Consequently, there is lack of familiarity or limited knowledge of the workings and details of the agreements and their impact on business. Going forward, Singapore will focus on capacity building and human resource development in the ASEAN countries to help them prepare for the 2015 deadline.

 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(19)

Comparative Study on the Perception and Response of Singapore and Indonesia

Above all, Singapore has been acclaimed the most advance country with per capita GDP of 60,300 USD in 2017 . In particular, Singapore is leading the region this year as it chairs the ASEAN summit and subsequent summits. 

In contrast with Singapore, Indonesia is ranked the first place in terms of the economic size. Indonesia has occupied as much as 40% of the regional GDP and has consistently beefed up its clout across Southeast Asia. 

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(43)

Comparative Study on the Perception and Response of Singapore and Indonesia

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

Truly speaking, as a backbone of the national economy, Indonesian SMEs have undertaken as much as 59% of the GDP and 97% of the business establishments.