CHAPTER I
INTRODUCTION
Background
The fate of ASEAN (Association of Southeast Asia
Nations) after Cold War (1947-1991) underwent the tough era. Crisis by crisis
attacked ASEAN at that time. ASEAN’s tough era is started by economy crisis in
the mid-1997. In Indonesia, the crisis in this period is a toughest having
attacked the stability of Indonesian economy. This crisis happened suddenly
when domestic economic growth rate arose rapidly reaching average growth around
7 percent per year during 1990-1996 and internal and external condition which
is conducive enough. The extreme crisis was caused by the fall of the rupiah
exchange rate against the US Dollar.[1] Then it continued the environment crisis
being caused by forest fires in several parts of Indonesia, specifically in
Sumatra and Kalimantan between 1997-1998. Besides, the crisis of humanity and
security rised in Timor Timur after the defining of notion in August 31st
1999. The crisis of leadership also rised after the stepping down of President
Soeharto from his regime of power at May 21st 1998 and the crisis
being caused by ASEAN members’ expansion into 10 countries in 1999.
Based on those crisis, in this period ASEAN’s
relevance started to be questioned. ASEAN got various critics coming from both
internal and external due to the decline of ASEAN’s relevance as international
organization. ASEAN had been assumed by various circles as not effective
organization and even called as organization starting to go down (sunset
organization).[2]
To answer the challenges, in The Ninth ASEAN Summit
in Bali at November 7th 2003, ten ASEAN’s leader namely Indonesia,
Malaysia, Singapore, Brunei Darussalam, Thailand, Philipine, Vietnam, Cambodia,
Myanmar and Laos agreed on the establishment of ASEAN Community or Bali
Concord II. In the establishment of ASEAN
Community, there are three pillars of cooperation that have been agreed
namely ASEAN Economic Community (AEC),
ASEAN Political-Security Community (ASPC)
and ASEAN Socio-Cultural Community
(ASCC). ASEAN Community’s
programs are one of agreements among the leaders of South East Asian countries
for future regional integration which will facilitate new cosmopolitan.[3]
The establishment of AEC is in line with ASEAN Vision 2020 (based on 2007
agreement) in economy sector aiming to transform ASEAN into stable, prosperous,
and competitive region by the equity of economic development, reduced poverty,
and the gap of social-economy.[4]
To strengthen ASEAN Community agreement, in the Thirteenth
ASEAN Summit in Singapore (2007), entire ASEAN members signed ASEAN Charter that aims: ”Commited to intensifying community building
through enhanced regional cooperation The ASEAN Security Community, The ASEAN
Economic Community, and The ASEAN Socio-Cultural Community.”[5]
AEC’s achievment through the creation of single
market and production base is aimed for expansion effort through regional
integration to reach omptimum economic scale. The steps of liberal integration
and strengthening ASEAN itself become strategies to reach overall or
individually strong competitiveness. AEC is also expected to be able to make
ASEAN stronger in facing international negotiation. Through economic
integration process, ASEAN will be a region liberating both good and service
trading and flow of production factors (capital and labor).[6]
AEC also aims to increase ASEAN countries’
competitiveness at international level and to be able to compete with economic power of
Asian countries such as China, India and Japan in alluring the entry of foreign
investment. 2015 is a significant milestone at ASEAN’s integration agenda when
economically ASEAN region had got significant progress and prosperity.
One of supporting pillars in establishing AEC is
employement aspect. The presence of AEC will make ASEAN as large region that
will give the widest opportunities for anyone wanting to work and will give
chances and also challenge to job seekers’ future. They will have freedom and
simplicity to choose place to work according to the skills they have.
Therefore, with the excellence of ASEAN working age is expected being able to
compete with global labor market so that it can boost the development of ASEAN
economy in the global arena.
Nonetheless, besides the employement opportunity,
there are challenges alsi in AEC 2015 that is noteworthy. One of the challenges
faced by Indonesia now is weak quality of human resources. Based on Badan Pusat
Statistik data per August 2016, the weekness of labor force which most of them
passed elementary school still around 52 million people or equal with 43%
Indonesian labor force. This thing must be particular attention to the
Indonesian government to escalate Indonesian education quality. Another
obstacle is high unemployed rate reached 5,61% in 2016.[7]
With the presence of AEC, foreign labor coming from
neighboring countries are free to enter Indonesia. Indonesian society right now
is facing with global environment whether they want it or not have to be faced
because global environment will affect on Indonesian society either directly or
indirectly. In terms of facing global competition, competent human resource is
the significant aspect that must be utilized as much as possible. The abundace
of Indonesian labor force shoud be balanced by quality of labor in order that
this huge opportunity can be beneficial for Indonesian economy. Therefore,
Indonesia is able to catch up with other countries, specifically in ASEAN.
In AEC
Blueprint, it is generally called that to support continuity of good, service
and invesment trading made in accordance with general regulations by host
countries, hence it is needed labor mobility or entry facility for the movement
of labor. In this term, ASEAN will facilitate visa publishing and employment
pass for professional labors and skilled labors working in sectors related to international
trade and investment activities in the ASEAN region.[8]
To support service integration, ASEAN is doing
various initiatives in employement field. One of which is the establishment of
Mutual Recognition Arrangements MRA. MRA is an agreement recognized by entire
ASEAN countries to admit one another and to accept some or all aspects of the
result of the assesment such as test result in the form of certificate. This
condition is reached by reducing good and service non-tariff barrier. According
to Tullao and Cortez, the MRA establishment aimes to create accreditation
procedures and mechanisms to reach similarity and to admit international
difference in terms of education, training, experience, and license requiremets
for professional practice.[9]
So far, ASEAN has agreed eight professional sectors
included in MRA namely engineering services (2005), tourism services (2005),
architect services (2007), nursing services (2006), surveying services (2007),
medical/doctor services (2008), dentist services (2008) and accountant services
(2008).[10]
Based on this background, the writer is interested
in researching about Indonesian labor problems in term of facing economy
liberalitation. Therefore, this research titled “THE POLICY IMPLEMENTATION OF
INDONESIAN GOVERNMENT TO ESCALATE LABOR
COMPETITIVENESS IN ASEAN ECONOMIC COMMUNITY”.
Problem of
Research
1.
How does policy
of Indonesian government escalate labor competitiveness face ASEAN Economic Community?
2.
What is
determinant sector of Indonesian service and labor competition?
Purpose of
Research
1.
Explaining
quality of policy having been done by Indonesian government to escalate the
competitiveness of Indonesian labor in facing ASEAN Economic Community
integration.
2.
Defining
determinant factors of Indonesian service and labor competitiveness.
Advantage of
Research
Academically, yield of research is expected to be
able to add knowledges about implementation of Indonesian labor policy in ASEAN
Economic Community. The author also expected that yield of research is able to
be a thought contributution scientific literature in Faculty of Social and
Politic State Islamic University of Jakarta.
Literature
Review
To
distinguish author’s study with other studies, it needs literature reviews that
are useful to make sure position and significance in the context of overall broader
research. The author found one of journals titled “Menakar Pengaruh Masyarakat Ekonomi ASEAN 2015 Terhadap Pembangunan
Ekonomi Indonesia” written by Atep Abdurrofiq. In his journal Atep
explained that with its demographic adventage, Indonesia is very likely to get
the biggest profitfrom more than 600 millions of ASEAN population. AEC opens
opportunties for investors around ASEAN with an asumption that Indonesia is a
potential market so Indonesia economic growth will significantly go forward.
Besides, Indonesia is als able to enlarge their invesment in ASEAN regions so
that production and economy capability are getting better. Nevertheless, this
condition can be contra-productive. AEC agenda is predicted that it is able to
bring out exploitation risk. Big scale exploitation of nature resources
probably happens because Indonesian regulations is not really binding so that
ecosystem destruction will happen because of foreign companies in Indonesia.
Therefore, according to Atep, exploitation risk must be anticipated by
particular regulative restrictions such as violation of foreigners to afford
and to own the land,
banning on foreigners to employ the locals less than 60 percent of total
workers, and other regulations which can exploit public interest so that AEC
will be opportunities for national economic progress.[11]
Atep’s writing explains that with following AEC agenda,
Indonesian environment would be damaged because of the arrival of foreign
companies to indonesia. Hence, Atep tries to give solutions by making strict
laws to environmental protection in order that market liberalization does not
give negative impact to the environment. In the other side, the author focuses
on study to the impacts or consequences of economy accepted Indonesia in its
participation in AEC. The author describes how Indonesian labor prospect will
be and what Indonesian government should do to reach ASEAN Vision.
The next literature review the author took is a study
written by Puji Nia Rachmatika titled Analisis
Kesiapan Indonesia dalam Menghadapi Kerjasama ASEAN-China Free Trade Area
(Tinjauan Terhadap Daya Saing Industri Tekstil Indonesia). This study
analyzes the readiness of Indonesia in textile competition sector in facing ASEAN-China Free Trade Area (ACFTA).
Purpose of the research is to analyze how readiness of Indonesia faces ACFTA
especially in textile industry. From this research, Puji found that Indonesian
textile industry is facing various supporting obstacles affecting
competitiveness such as labors problem, expensive energy, unconducive
infrastructure, the lack of rejuvenation of textile machinery government’s
policies and regulations and coordination among departements become the cause
of unhealty indonesian textile industry and it has not been able to compete
with China in ACFTA. In labor factor, Indonesian weaknesses are high labor cost
and lack of competitiveness in terms of the national textile industry. To
answer those challenges, It nees human resources and high labor expertise. It
can be reached with the establishment of formal education institution, centre
of craftsmanship, technical training, and marketing.[12]
The difference between Puji’s study and the author’s sudy is level of research
area. The author reviews the readiness of Indonesian labor in facing AEC in
terms of labor sector. In this work, the author explains Indonesia’s
preparations in terms of human resources and regulations applied by the
government.
The
author also found literature review related with this study about labor market
in the book titled Pasar Tenaga Kerja
Indonesia: Kasus Sektor Konstruksi written by Kartini Sjahrir. This book
tries to answer question namely about migration and rural area, urban area and
construction sector and role of Indonesian government in changing rural area
and urban area. This book specifically describes government policies in
developing rural area and urban area. For the improvement of rural area, New Orde
Era government did self-sufficiency in rice proclaimed since the 1970’s which
has been able to escalate rce production. The development also happened in
urban areas where the development affected to the labor migration from rural
area to urban area. In his work, the researcher found the development urban
center had been able to create jobs, especially for unskilled labor for example
in transportation sector, becak rider
can have net income around Rp 5.000 per day. Also in trading sector, travelling
salesman (pedagang keliling) can earn
very well around Rp 6.000 per day. Those facts prove that urbanization affected
to the rising of better wage offer especially for unskilled labors. Rural areas
are main source of labor supply for construction sector in urban area. Wage
earned by construction labors is relatively higher than that of by them worked
in either the rice fiedls or sugar cane plantations.[13]
From Kartini’s study, the author delves that migrasi has had positive impact
for economu specifically giving high wage to unskilled labor. In AEC also
happens labor exchanges from member countries so that labor market pattern in
New Orde Era can be repeated so that
both sides are able to get advantages from AEC policies.
In
terms of labor liberalization, the author found study result titled Pemetaan Pekerja Terail Indonesia dan
Liberalisasi Jasa ASEAN being done by ASEAN Study Center Faculty of Social
and Politic cooperating with Badan Pengkajian kementerian Luar Negeri Republik
Indonesia. This study was done by Makmur Keliat, Ph. D, Asra Virgianita, MA,
Shofwan Al-Banna, Ph. D, and Agus Catur Aryanto S.Sos. Focus of this study is
labor liberalization in one of AEC agendas namely Mutual Recognition
Arrangements (MRA). This research reviews eight sectors having been agreed MRA.
This research found facts that if we see the trade balance of services,
Indonesia continously has large deficit. Import value of service is doubled of
export value of Indonesian services. In many sectors, the entry of migrant
workers is deemed necessary as the gap between the needs of professionals in a
sector is not sufficient for domestic professionals. From eight MRA sectors,
generally the quantity of human resources in almost whole sectors have a
shortage of professional workers. This problem is caused by the lack of professional
labor distribution whose majority of human resources are concentrated in Java
especially Jakarta. In the other side, migrant workers also are not sure to
resolve this problem because precisely it will gain competition in a tight
competition. So, it can be concluded that Makmur and colleague’ study is highly
relevant with this research so that it helps the author to develop this
research. By the journey of AEC, This study is expexted being able to prove new
findings about Indonesian labor and developing study which have been done by
Makmur and colleagues.[14]
Method of Research
This
research uses descriptive-analytical method which is study to find a fact with
accurate interpretation and anlysis is intended for testing hipothesis and conducting
deeper interpretation in relations.[15]
The research uses literary study such as documents having been collected to
know how far research science has developed and how far the conclussion can be
found and degeneralitation having been made so that the situation is able to be
obtained.[16]
Research data sources are collected from literary
research such as textbook, journal, bulletin, and annual review which discuss
about ASEAN relation and Indonesian politic. Data sources are also collected
from direct interviews with policy actors such as Edo Amrullah as a head of law
firm of Employement Minister and Aris Hermanto As a head of Stabdard Kompetency
Division. The author also interviewed Arsis Arif Mundayat as an ASEAN human
right reasearcher. This study is based on Academic Guidence of Fakulty of
Social and Politic.
Systematic of
Research
In
Chapter I, the author explains background of problem and question of problem,
advantages and aims of research, literature review as author’s reference to related
studies method of research and systematic of research.
In
Chapter II, the author explains theoritical framework as conceptual foundation
in dissecting study that will be written.
In
Chapter III, the author focuses on general description of development started
from Selayang Pandang ASEAN until the establishment of ASEAN Community. Then
the author explains generan description of ASEAN Economic Community, economy condition,
labor and ASEAN human resource. At the last, in this chapter the author
expalins about the concept of labor liberalization.
In
Chapter IV, the author conducts a analysis about Indonesian government’s
policies in escalating labor competitiveness in ASEAN Economic Community.
In
the last Chapter, the author redescribes finding from Chapter IV to conclude overall
form the findings of research and describing recommendations for next study.
[1]
Tulus Tambunan, Krisis
Ekonomi dan Masa Depan Reformasi, (Jakarta: Lembaga Penerbit Fakultas
Ekonomi Universitas Indonesia, 1998), 1-2.
[2]
P. L. E Priatna, ed., Indonesia
dan Ketua ASEAN 2011: Mewujudkan Komunitas ASEAN di Tengah Komunitas
Global, (Jakarta: Mata Elang Enterprise, 2012), 108.
[3]
Aris Arif Mundayat, “The Marginalizen In
Malaysia: Human Rights Predicaments and The Future Challenge Of ASEAN
Integration” dalam Azmi Sharom, dkk., Human Rights And Peace In Southeast Asia
Series 5: Pushing The Boundaries, “Southeast Asia Human Rights Studies Network (SEAHRN)”, (Agustus 2016), 97-118.
[4]
AEC 2015: Progress and
Key Achievments, accessed at
December 15th 2016 on www.aseansec.org, 3.
[5]
Direktorat Jendral
Kerjasama ASEAN, ASEAN Selayang Pandang, (Jakarta, t.p., 2007), 30.
[6]
Sjamsul Arifin and colleagues, ed., Masyarakat Ekonomi ASEAN: Memperkuat Sinergi
ASEAN Di Tengah Kompetisi Global, (Jakarta: PT. Kompas Gramedia, 2009),
10-11.
[7]
Badan Pusat Statistik, Tingkat
Pengangguran Terbuka (TPT), accessed November 18th 2016 on https://www.bps.go.id/linkTabelStatis/view/id/1904.
[8]
Sjamsul Arifin and colleagues, Masyarakat Ekonomi ASEAN, 245.
[9]
Sjamsul Arifin and colleagues, Masyarakat Ekonomi ASEAN, 252.
[10]
Bulletin Kementerian
Luar Negeri, Masyarakat ASEAN: Membidik Peluang MEA Edisi 7 Maret 2015.,
accessed at December 15th 2016 dari www.kemlu.go.id, 8.
[11]
Atep Abdulrofiq, Menakar
Pengaruh MEA 2015 terhapap Pembangunan Ekonomi Indonesia, accessed at November 5th 2016
on https://www.academia.edu/9997959, 7-8.
[12]
Puji Nia Rachmatika, Analisis
Kesiapan Indonesia dalam Menghadapi Kerjasama ASEAN-China Free Trade Area,
(Jakarta: Skripsi Strata I UIN Syarif Hidayatullah
Jakarta, 2011), 94-96.
[13]
Kartini Sjahrir, Pasar Tenaga Kerja Indonesia: Kasus Sektor
Konstruksi, (Jakarta: Pustaka Utama
Grafiti, 1995), 230-234.
[14]
Makmur Keliat amd colleagues, Pemetaan Pekerja
Terampil dan Liberalisasi Jasa ASEAN, (Depok: ASC FISIP UI,
2013).
[15]
Moh. Nazir, Metode Penelitian, (Jakarta: Ghalia Indonesia, 1988), 105.
[16]
Nazir, Metode Penelitian, 112.
