Assalamu’alaikum
warrahmatullahi wa barakatuh.
Your
excellencies the committees,
The
honorable adjudicators, and
Dear
audiences,
All
praises be to Allah SWT, the lord of the world who created everything in this universe.
Peace and salutation be upon our prophet Muhammad SAW, who brought us to the
new great civilization.
In this opporunity I’d like to deliver a speech
entitled AFTA – AEC and Indonesia
Opportunity.
Dear audiences,
The year 1992 became a historical event in the Southeast Asia region. The time was the
signing of the ASEAN Free Trade Agreement (AFTA) in the ASEAN Summit in
Singapore by Indonesia, Malaysia,
Singapore, Philippines, Brunei Darussalam and Thailand.
The aim of AFTA was to create a single market and a
world production base through the elimination of tariff and non-tariff
constraints with the underlying goal of enhancing competitiveness with ASEAN
countries. For example, ASEAN is the
production base of many electronic and automotive industries that export
finished goods around the world.
Ten years later, 2013, the ASEAN leaders agreed to
establish the ASEAN Economic Community (AEC). The main purpose of the
establishment of the AEC is to create a single market and international
production base with elements of a freer flow of goods, services, investment,
educated labor and freer capital flows. It will be implemented in 2015 with an
underlying agenda of economic integration of ASEAN countries to eliminate or
minimize the obstacles in economic activity across the region, in trade, goods
and services, and investment.
Dear Audience
The AEC creates greater economic opportunities for
Indonesia, specifically with the marketing of goods and services from Indonesia
by expanding its reach to other ASEAN countries. Currently, market share in
Indonesia is represented by 250 million people. In the AEC, the ASEAN market
share of some 625 million people could be targeted by Indonesia providing the
country with a greater opportunity to tap into a wider market.
Under the AEC, exports and imports will be
processed cheaper with an additional benefit tied to labor from other countries
in ASEAN, as these countries will be free to work in Indonesia and in contrast,
Indonesian workers (TKI) will be free to work in other countries in the
Indonesia potentially reaps the benefits of foreign
investment as well as increased exports noted as an important driver of growth
for the economy. Meanwhile, the World Bank estimates that the enforcement of
AEC will Attract Foreign Direct Investment (FDI) in the range of 28 to 63
percent. Increased FDI is important for Indonesia to maintain economic growth
especially when export performance declines. The potential for Indonesia is
great as long as Indonesia is prepared to take advantage of the momentum.
AEC 2015 poses to bring a very significant impact
for the development of Indonesian businesses because it not only creates a free
market for trade in goods and services, but also touches all the joints of
other economies in the areas of employment, competition, and policies relevant
to the development of Indonesia. AEC should not be viewed as a threat to the
Indonesian business world because of increasing competition from ASEAN
countries, but also as a golden opportunity because the removal of barriers and
encouragement of investment from the ASEAN region.
That’all my speech, thank you for your attention.
Wassalamu’alaikum
warrahamatullahi wa barakatuh.
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