People Innovation Excellence


As we all know, ASEAN Economic Community (AEC) which comprises Thailand, Myanmar, Laos, Vietnam, Malaysia, Singapore, Indonesia, Philippines, Cambodia and Brunei is going to operate soon in this year. In short, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital. The activity of export which is selling goods to other countries and import which is buying goods from other countries will be more frequent and much easier than has ever been before.

Many benefits will be gotten from the AEC for Indonesia, number of investments will rise, this then will provide jobs for Indonesian people thus the economic will become better off. However, there will also be negatives or bad impacts arisen from the AEC. Exploitation of the resources in Indonesia will happen which will destroy our environment, therefore regulations should be made to limit the foreign investors’ activities. Besides, competition from the ASEAN countries might make it hard for local businesses.
To face the AEC Indonesia needs to prepare well because competition will increase drastically. For businesses their competitors will not only come from the local area or regions in Indonesia, but also from other countries that are part of ASEAN. It is important that Indonesia has to make sure the existed businesses have to remain competitive in order to compete with those from other countries.

If local businesses can not remain competitive they will lose their customers to those businesses and so imports will rise and cause deficit for Indonesia, making the economy worst off. While, if local businesses can survive and stay competitive the exports will rise, making surplus for the country and therefore the economy will be better off. One of the best way to remain competitive is by making innovation.

It is the activity of designing or creating a new product that has not existed before. Then it is continued by invention which is introducing the new product to people so that they can use it. However, after this process imitation can happen. Other entrepreneurs might see it to be a good product for business and copy it, so the market share for the inventor will fall. To prevent this from happening, the inventor needs to make a patent for their product.

If Indonesia prepares its people well for this AEC, there are many opportunities for them to grow and develop, especially in the technology and economy.

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