Human Capital Competitiveness in ASEAN Economic Community (AEC): The Role of Regulation, Indonesia Experiences

Salmiaty Taty,Ridwan Ismail Razak,Bayu Taufiq Possumah

doi:10.3844/ajassp.2017.267.273

Abstract

The AEC is an economic integration between ASEAN countries with the creation of a free market generally in the context of capital, goods and services and labor. The AEC opens the gate for all countries to invest and have better mutual cooperation. Indonesia experienced a big leap from 50 to 37 in the World Economic Forum (WEF) competitiveness ranking. As the largest population in the ASEAN, Indonesia must work harder to compete with the advanced educated labor force from Singapore, Malaysia and Thailand. Some challenges to develop the human capital. The problems that exist in the context of human resources and labor in Indonesia today such as lack of expertise, low education, inadequate facilities, low competitiveness, unemployment, imbalance salaries, low productivity and many others, but these problems do not make Indonesia retreat and avoiding the free market competition. MEA 2015 should not lead Indonesian labor plunged in their own home, but MEA expected to drive Indonesian workers able to exchange experiences and advance skill from other countries.

Highlights

Indonesia is currently racing in the vortex of the Southeast Asia free market, or commonly known as the ASEAN Economic Community (AEC), which had begun in 2015
The Policy Review points out that Indonesia faces a unique window of opportunity: with 43% of its 250 million-strong population under the age of 25, the country is already endowed with the human resources necessary to propel growth, provided its workforce is equipped with the right skills
The problems that exist in the context of human resources and labor in Indonesia today such as lack of expertise, low education, inadequate facilities, low competitiveness, unemployment, imbalance salaries, low productivity and many others, but these problems do not make Indonesia retreat and avoiding the free market competition

Summary

Introduction

Indonesia is currently racing in the vortex of the Southeast Asia free market, or commonly known as the ASEAN Economic Community (AEC), which had begun in 2015. The Human Development Index (HDI) Indonesia was ranked 121st out of 187 countries In this ASEAN Economic Community (AEC) era, competition in the labour market becomes more extensive and the demand for high quality of human resources is primed and ready to compete. The ultimate goal is creating a bureaucracy to support national competitiveness

Research Methodology

Conclusion

Findings

Funding Information