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.

Advent of the Era of the AEC and Its Impacts on Singapore and Indonesia(35)

Advent of the Era of the AEC and Its Impacts on 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.