The Challenges and Advantages of AFTA 2015 for Indonesia

A. AFTA and Its History.

AFTA is an abbreviation of ASEAN Free Trade Area is an agreement of the ASEAN countries. It's an ASEAN policy to improve the economic competitiveness of ASEAN member.

Agreed on January 28, 1992 in Singapore when the summit SEAN 4th held. At first there were six countries agreed AFTA, namely: Indonesia, Brunei Darussalam, Malaysia, Philippines, Thailand and Singapore. Then Vietnam joined in 1995, while Laos and Myanmar joined in 1997, and last Cambodia joined in 1999.

At the meeting each of the head state announced it would form a free trade area in ASEAN within 15 years. AFTA is a form or agreement from ASEAN countries to establish a free trade area in order to improve economic competitiveness of the ASEAN region to make ASEAN as a production base of the world will be achieved within 15 years (1993-2003), then accelerated into 2003, and finally accelerated again to 2002. If calculated, it should be effectively run in full in 2007. But, in the fact AFTA will be active in 2015, 22 years later.

Common Effective Preferential Tariffs For ASEAN Free Trade Area (CEPT-AFTA) scheme is a scheme to realize AFTA by tariff reduction up to 0-5%, elimination of quantitative restrictions and non-tariff barrier. Recent developments related to AFTA is an agreement to abolish all customs duties for import of goods in 2010 for Indonesia, Malaysia, Philippines, Singapore and Thailand, also for Cambodia, Laos, Myanmar and Vietnam in 2015.

Product are categorized in the General Exception is that products do not need to be permanently incorporated into the CEPT-AFTA, for reason of national security, safety, or health of humans, animals and plants, as well as to preserve the archeological objects and culture. Indonesian categorizing product in a group of weapons and ammunition, alcoholic beverages, and so on as much as 68 tariff lines as the General Exception.

B. Indonesian attitudes to face the AFTA and compete with other countries in it.

1. The Concept of National Interest.

National Interest is the objectives to be achieved in relation to the needs of the nation / country or in connection with the aspired. In this case the national interest is relatively fixed and equal among all state / nation is security (including the survival of its people and the needs of the region) as well as welfare. Both of these are security of welfare (prosperity). National interest identified with the national goals. For example, economic development interests, the interests of development and improvement of the quality of Human Resources or foreign investment interests to accelerate the pace of industrialization.

The national interest is often used as a benchmark or principal criteria for decision makers of each country prior to formulate and establish attitudes or actions. In fact, every step of foreign policy should be based to the national interest and is directed to achieving and protecting what is classified or designated as National Interest. [1]

So, the head of state should be considering the interests of his/her country to make decisions that lead to AFTA.

2. The concept of foreign policy.

Every country must have a national interest to be achieved. National interests of each country manifested in the implementation of foreign policy. A study of the foreign policy become so essential to assess, given the willingness of a country to always exist in the international arena is increasing from time to time.

As a subject of study, the study of foreign policy to learn how to analyze and describe the foreign policy of a country by concentrating on common symptoms are sticking on the surface, both in terms of pattern, nature, and type of foreign policy is based on the context and purpose formulation.

In addition, this study also focuses on the factors that influence the determinants of the policy to be taken by the decision makers (Wicaksana, 2007: 20). The study of foreign policy has traditionally been concentrated on efforts to maintain and improve the capability of the power and security of a country through to avoid war if possible, decided to fight back if necessary, and maintain the integrity of nation borders (Breuning, 2007:5)

Foreign policy always proclaimed based on national interest in order to achieve the national goal, which is an elaboration of the national goals of the nation state interest (Morgenthau, 1977 in Wicaksana, 2007: 20). Thus, foreign policy closely related or associated with the desire to achieve certain national interest and become an essential instrument in building the nation's interstate interaction.

In any decision process, decision makers always strive to provide the best for his country, although sometimes irrational decisions taken and deemed unpopular by many. Example is the decision of Chamberlain, the British Prime Minister, to compromise with Hitler in the Munich Conference in 1938 related to the region Sudetenland.

C. The Concept Of Role Theory

According to Dougherty & Pritchard (1985) in Bauer (2003: 55), role theory provides a conceptual framework in the study of behavior in organizations. They stated that the role was "involves the creation of a product as opposed to a pattern of behavior or action" (p. 143). Furthermore, Dougherty & Pritchard (1985) in Bauer (2003: 56) suggests that the relevance of a role it will depend on the emphasis of the role of the assessors and observers to the product or the resulting outcomes. In this regard, strategies and organizational structures are also shown to influence the perception of the role or roles and role perception (Kahn, et al., 1964; Oswald, Mossholder, & Harris, 1997 in Bauer, 2003: 58).

There are two types of behavior expected in a job, namely (1) the role of perception: that one's perception of how people were expected to behave; or in other words is the understanding or awareness of the patterns of behavior or functions expected of the person, and (2) role expectation: that is how others accept one's behavior in certain situations. With the role is played by a person in the organization, will form an important component in terms of identity and that person's ability to work. In this case, an organization must ensure that these roles have been clearly defined. This theory is very suitable for use in the implementation of AFTA 2015.

AFTA Challenge for Indonesia in 2015

1. Educational Challenges

If you look at the developed countries in ASEAN such as Singapore, they look more advanced education. What about Indonesia? How to deal with the invasion of the workers' output results in ASEAN countries such as Singapore? In one of the effects of AFTA is every citizen of ASEAN member countries can go to school or work in each ASEAN member countries.

In fact education in Indonesia is still a bit messy. A simple example is an electrical engineering graduate working in banking, or someone who works not in his field of expertise. Education in this country is still on target to recognize the potential of students with targeted, so that students can maximize their potential. In other hand, maybe with the AFTA in 2015 could increasing rate of unemployment in Indonesia.

2. Trade Challenges

Indonesia will only be used as a selling point of the other ASEAN countries. A simple example is a smart phone which comes from other countries. Indonesia is only used as a place to sell their products. With the AFTA in 2015, Indonesia will lose trade competitiveness with other ASEAN countries.

The Advantage of AFTA 2015 for Indonesia.

1. Work Permit in ASEAN Countries More Easily.

Indonesian professionals already supposed to work abroad, do not want to just state of Indonesia which was colonized by another country. Time for Indonesia to be the "ex-pat" in other countries. Salaries in ASEAN countries such as Singapore and Malaysia will certainly larger than in Indonesia. Time for professional educated workforce contribute to foreign exchange for the country.

2. Utilization of Tourism as a Source of Foreign Exchange

Indonesia is rich in natural resources and tourism location is a lot of interest among tourists. Natural resources are depleting make Indonesia should think about more things that can increase revenue for the state.

With the utilization of existing tourism, Indonesia will be able to survive and compete with other countries in ASEAN. Indonesia has a complete tourism locations and exotic place to visit that stretches from Sabang to Merauke.

There are several important things that can make Indonesia can survive, or even can take advantage of AFTA in 2015 to make it more advanced countries. Good education, law enforced, discipline, and a spirit of optimism to get ahead of each citizen. If all of these things can be done well, Indonesia could become prosperous again as in ancient times.

C. Conclusion

AFTA is a form of cooperation in the ASEAN countries to improve the economy in its member countries to present the form of free trade among ASEAN countries. One of the important points that can be seen from the implementation of AFTA is tariff reductions for goods up to 0-5%.

Indonesia as one of the ASEAN member countries will surely run well this policy. In order to face the challenges of AFTA in 2015 there are several steps that must be considered to Indonesian government, namely : where the concept of national interest therein suggested that the government should consider the interest of the people and the nation in making decisions on the implementation of AFTA in 2015, a favorable decision for Indonesia and the application and understanding theory of the role properly.

D. Literature

Menuju ASEAN Economic Community (PDF). http://ditjenkpi.kemendag.go.id/website_kpi/Umum/Setditjen/Buku%20Menuju%20ASEAN%20ECONOMIC%20COMMUNITY%202015.pdf. Accessed May, 23th 2014

Implementasi Kebijakan Luar Negeri (PDF). http://pustaka.unpad.ac.id/wp-content/uploads/2012/02/13_implementasi_kebijakan_luar_negeri.pdf. Accessed May, 24th 2014

Jurnal Online. http://www.jurnal.lipi.go.id/. Accessed May, 25^th 2014

Penjelasan Umum Tarif. http://www.tarif.depkeu.go.id/. Accessed May, 25^th 2014

ASEAN Free Trade Area (AFTA Council).

http://www.asean.org/communities/asean-economic-community. Accessed May 27th, 2014

BAPPENAS. http://ditpolkom.bappenas.go.id. Accessed June, 5^th 2014

Peran Indonesia dalam AFTA. http://prezi.com. Accessed June, 6^th 2014

ASEAN Free Trade Agreement: Overview, Trends and Challenges. http://www.canasean.com/home/asean-free-trade-agreement-overview-trends-and-challenges-1. Accessed June, 8th 2014

ASEAN Free Trade Agreements : Policy and Legal Considerations for Development (PDF). http://www.aseanlawassociation.org/9GAdocs/w3_Thailand.pdf. Accessed June, 8th 2014

ASEAN Free Trade Agreement. http://www.worldtradelaw.net/fta/agreements/afta.pdf. Accessed June, 8th 2014