Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(36)

Comparative Study on the Perception and Response of Singapore and Indonesia

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. 

However, the number of major players is very small and accounts for less than one percent of the total number of business establishments in Indonesia.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(41)

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia

As a matter of fact, only a few countries in the region have 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 for their new source of growth engines. 

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. 

Establishment of the AEC and its implication for South Korea(10)

Establishment of the AEC and its implication for South Korea

Unlike competitors heading forward, South Korea is often regarded encountered with shabby circumstance. Worries are prevailing that South Korea is way behind not only the running Japan but also the flying China. Other major players including Australia, America and the North Europe don't sit idle as well. 

Prediction is that the ASEAN may play a crucial role of the last resort to save South Korea suffering from chronic weak growth. Needless to say, systematic and long-term approach is desperately needed in the unprecedented era of the AEC.