Sutedja, S.H.                                                      Andrew Sutedja, S.H., LL.M., A.CIArb
Senior Partner & Head of Dispute                    Partner & Head of Corporate and Commercial Practice Group
Resolution Practice Group

Sutedja & Associates

A: Jalan Bungur Besar Raya 55,
N o. 2D, Central Jakarta - 10620
T: (62) 21 420 16 72
F: (62) 21 422 74 60
E: enquiries@sutedjaassociates.com
W: www.sutedjaassociates.com

The ASEAN Economic Community shall be the goal of regional economic integration by 2015. AEC envisages following exclusivities: (a) single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy. On top of that, the AEC areas of co-operation include human resources development, capacity building and recognition of professional qualifications. The AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital.

In Indonesia there will be a tremendous change in job market priorities as a result of the ongoing transition of the country from an agrarian to an industrialised economy and its alignment with regional community. This transformation is expected not only affected industries or workplaces calling huge numbers of employees but employers require competitive, multi-talented and high skills employees. Is Indonesia human resources ready to compete in the AEC 2015?

Today, the country is facing a serious problem in developing its human resources as a result of mismatch between the local education institutions are preparing the students for, and the market demands. The current curriculum offered by Indonesian education institutions need improvements equally. Many subjects delivered in the schools and/or universities do not make a student ready to meet the market demands. The undetermined national education policy is another barrier to produce multi-talented and high skills employees.

Despite many problems in the human resources, the business shall run as usual. Blaming the national education policy in Indonesia will not solve the matter. The active role from the companies in Indonesia now it is more important starting from the recruitment process until continuous training when they are accepted the job offer.

In reality, many companies make the error of viewing training as a cost rather than as an investment; and of those that view it as an investment, many limit the training to technical aspects of the job rather than aiming to develop employees more holistically. Learning from the success story of many companies in the region, they always deliver service excellence in a cost-effective way. A key challenge probably, when implementing business-level strategies, such as effective differentiation from one company to another in providing the good service for their customers.

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