Jakarta, Jan 7 (Antara) - As it enters the first year of the ASEAN Economic Community (AEC), Indonesia is changing its development strategy in order to speedily build an economic foundation amidst competition in the Southeast Asian regional single market.
Beginning this year, President Joko Widodo (Jokowi) has ordered ministries and state institutions to start state budget-funded projects at the beginning of the year.
Besides moving forward with development projects, the government will also urge businesses to map out their own strength and the strengths of competitor countries to enable them to adopt accurate strategies and increase their competitive edge.
Crucial to this problem is the quality of the country's human resources and that the younger generation must be prepared.
The ability to compete in the single market where ASEAN members are no longer confined to borders in term of the flow of goods, services and workers will be supported with qualified human resources, technology and a strong economic foundation.
The expansion of economic activities should therefore be generated soon with the quick implementation of development projects, which are funded through the state budget.
In this regard, the government will adopt a new system of budget absorption by ministries and state institutions in the face of a regional single market.
"I will consistently implement this new budget absorption system and will continue to push the ministries and state institutions to follow it," President Jokowi stated after the signing of project contracts during the 2016 Annual Work Activities of the Ministry of Public Works and Public Housing in Jakarta on Wednesday.
Based on the new system, the state budget-funded projects will be auctioned as early as possible at the beginning of the year and will allow work on the projects to run for the entire year. Thus, infrastructure projects could be completed speedily, and the benefits could be reaped by the people soon.
The auction of such projects has so far been carried out at the beginning of the current budgetary year, and these will take about four months to be completed. This has led to the signing of the contracts and work in the field is expected to start in about six months.
"The reason for starting all the projects at the beginning (of the year) is to give a boost and stimulate economic growth. A situation where investors and businesses have placed their trust in us and we end up being negligent should not arise. We should pay attention to this," the President emphasized.
Jokowi remarked that 11 countries in ASEAN will be able to enter Indonesia easily to control products and projects at home if the nation did not change its old-fashioned and traditional pattern of working.
"In the past, we started projects in May, July, and August. Now, we should move them forward to January," he said.
Jokowi urged all sides to cooperate in commencing the auction before the current fiscal year begins. The contract should be awarded at the start of the year.
After all, it is now the era of competition as Indonesia has entered the AEC. "We cannot reject it anymore. We cannot say that we do not accept it (single market). So, if we still use the old system, we should not be surprised if we see outsiders stepping in," he noted.
Businesses must stay well-informed about the growth prospects of various sectors in the ASEAN region so that they can build a competitive edge.
According to Ina Hagniningtyas Krisnamurti, the director for ASEAN Economic Cooperation of the Ministry of Foreign Affairs, Indonesian business and entrepreneurs should formulate their own strengths and have an idea of what others plan to do in the AEC in a free trade era.
"Indeed, Indonesia got a headstart while entering into such a cooperation (in free trade area) in 1977. It joined the AFTA in 2010, and gained invaluable experience," she said on Wednesday.
Ina added that Indonesia should no longer question whether it is ready but should rather ask what strategy it should adopt to face the future.
"It will clearly have a significant impact, tangible as well as intangible. I can assure you that the impact can be felt not only by business players, but also by other sectors," she said.
Yet, she refuted the idea that the AEC would pose difficulties to Indonesian small businesses. Indonesian micro, small and medium-scale businesses (UMKM) could take advantage of the AEC era by strengthening their market networks and enhancing the quality of their products to remain highly competitive.
"There is no need to worry. We must stay optimistic and turn all situations into opportunities. The education sector, particularly the higher education institutions, will play the greatest role," she said.
The education sector must help improve the quality of human resources, which will enable Indonesia to compete from a position of strength.
Regarding human resources, Communications and Informatics Minister Rudiantara said Indonesia is now ready to face the ASEAN single market, and has taken various strategic steps.
Among other things, Rudiantara mentioned the government's efforts to launch the national certification mechanism for human resources in the information technology (IT) field. The certification will help enhance the competitiveness of Indonesian workers.
Last month, the minister had handed over licenses to five professional certification institutions in the communications and informatics field and a certificate to a committee, which conducts competence tests.
This is part of the efforts to prepare human resources, particularly the younger generation.
"Today, the younger generation, which should be the backbone of Indonesia in facing the AEC, is not familiar with the competition," a lecturer of Communication Studies, Adi Wibowo, noted recently.
However, Adi highlighted the keenness of the youth in excelling in several areas, such as science, technology, economy, and the creative industry. "Otherwise, we will become mere consumers rather than producers," he remarked.
To enter the AEC era, the nation, in the short term, must increase the capability of the younger generation to produce goods and services rather than become mere consumers.
Therefore, the People's Consultative Assembly¿s (MPR¿s) Deputy Chairman Hidayat Nur Wahid has urged the government to exert more serious efforts in preparing the younger generation.
"I do not see more serious efforts from the government to prepare Indonesia's youth to face the AEC. This matter is very important," he had said on Dec. 28. ***3***
(T.A014/INE)EDITED BY INE/H-YH(T.SYS/A/BESSR/A/Yosep) 07-01-2016 17:58:4 |
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