REPORT
FES/ASETUC
INDONESIAN NATIONAL ADVOCACY WORKSHOP ON SOCIAL DIALOGUE
Le Villa Resort, Puncak, West Java, Indonesia
4 – 5 June 2010
|
Date/Time |
Agenda |
Person in charge |
|
|
Friday, June 4, 2010 |
|
|
|
|
08.00-09.00 |
Registration |
Organizer |
|
|
09.00-10.30 |
Overview of ASEAN and Social Dialogue by ASEAN Secretariat |
ASEAN Secretariat:
|
|
|
10.30-12.00 |
Goes To Le Villa Resort, Puncak , Bogor, West Java |
Organizer |
|
|
12.00-13.30 |
Lunch, Friday Prayer, Check in |
Organizer |
|
|
13.30-15.30 |
Welcome Remarks |
(Ms. Hayani Rumondang, Director PHI & Social Security MOMT) |
|
|
15.30-16.00 |
Coffee Break |
Organizer |
|
|
16.00-17.00 |
FGD |
Moderator |
|
|
17.00-19.00 |
Break & Dinner |
Organizer |
|
|
19.00-21.00 |
Overview ASEAN |
Mr. Bonie Setiawan ( Institute Global Justice) |
|
|
Saturday, June 5, 2010 |
|
|
|
|
07.00-08.00 |
Breakfast |
Organizer |
|
|
08.00-08.30 |
Review |
Moderator |
|
|
08.3o-10.00 |
Discussion “Impact and Opportunity of ASEAN Integration for Indonesian Employers and Workers. |
1. Mr Shofwan Choiruzzad, S.Sos,MA : Editor International Political Journal – University of Indonesia 2. Ms. Iftida Yasar: APINDO / KADIN |
|
|
10.00 - 10.30 |
Coffee Break |
Organizer |
|
|
10.30-12.00 |
Perspective & Response of Indonesian Trade Unions on ASEAN Economic Integration |
UNI affiliate: Mr. Muhamad Rusdi - Social Security UNI affiliate: Mr. Muhamad Hakim, Presiden ASPEK Indonesia - Social Partnership BWI affiliate: Khoirul Anam : Presiden FSP KAHUTINDO – Standard Skill Competence of Indonesian Workers |
|
|
12.00-13.00 |
Lunch & Check Out |
Organizer |
|
|
13.00-14.00 |
Continue Discussion |
Moderator |
|
|
14.00-15.30 |
Recommendation & Action Plan ASETUC Indonesia |
Moderator |
|
|
15.30-16.00 |
Closing |
Organizer |
|
I. Context
· Political / Social / Economic
· National / Regional / Global
The beginning of the 21st century is marked with integration process throughout the world particularly in economic sector. This integration process is important in one region to compete with other regions in encountering the globalization and liberalization in the world trade. Successful story of this integration process is European Union (EU) that can unite 15 West European countries in one market, marked with the creation of joint currency namely Euro. Despite the non adoption of Euro by England and some Scandinavian countries, the emergence of Euro becomes the historical phenomenon and remains one of the world most significant currencies other than American Dollar.
Year 2004 was the historical moment for Europe and the world because EU added its membership to 25 countries by entering 10 West European countries and ex-Soviet Union. The integration process will still continue as some countries will join the same next year. EU has been successful in uniting Europe (that has been desired since the age of Napoleon Bonaparte) to make it a peaceful and stable region with even prosperity rate.
The success of EU in forming a sole market inspires ASEAN to make the same thing. In ASEAN Summit Conference in October 2002 in Cambodia, Prime Minister of Singapore, Goh Chok Tong, proposed to form what he called ASEAN sole market as a followed model learnt from the EU. The proposal was fully supported by the Prime Minister of Thailand, Thaksin Shinawatra, and the Prime Minister of Malaysia, Mahathir Mohammad. The idea was finally realized with the execution of Bali Concorde II on October 7, 2003, agreeing the formation of ASEAN Community in 2020 with the three main pillars: ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community.
The unification of Southeast Asia countries into an ASEAN Community will certainly bring about extraordinary impacts, not only on the economy but also on other aspects of life. From economic side, the integration will create a market extending to 4.5 million km2 with the population amounting to approximately 500 million people (equals to that of the EU); the total trade can exceed 720 billion dollar per annum and the Gross Domestic Product (GDP) may exceed 737 billion dollars. The agreement on ASEAN free trade can increase intra-ASEAN trade from 43.26 billion dollars in 1993 to 80 billion dollars in 1996 and increase the average growth of 28.3 percent per annum. Ratio of intra-ASEAN trade to total trade also increases from 20 to 25 percent. It is; therefore, a factor to convince that the ASEAN integrated economy will be able to bring about considerable impacts for the region.
We can say that ASEAN Economic Community or ASEAN Sole Market 2020 is a borderless economic region in which there is a free movement of capital, of people and of goods & services among ASEAN countries with no barriers. The purpose is to attain the most optimum use that will eventually motivate the attainment of equal prosperity/ welfare rate among ASEAN member countries.
The concept is reflected in the ASEAN Free Trade Agreement (AFTA) as to create the following conditions:
- Free movement of goods and services – eliminating import duty, tariff, quota, etc. as barriers to trade among ASEAN countries..
- Freedom of movement for skilled and talented labours – encouraging the mobility of labours in accordance with market demand and giving opportunities to ASEAN citizen to find the best job in accordance with their qualification. However, this condition is applied differently in ASEAN than in the EU. The freedom of movement is favourable to professionals or high-skilled population and unfavourable towards the low-skilled and average workers. This implies that intellectuals who by default have better chances to get good jobs are given even more privileges to have access to the best jobs while the opportunities for lower-skilled workers become more restricted. Taking the Indonesian workforce into consideration, this limits the competitiveness as Indonesia has a large number of low-skilled workers.
- Freedom of establishment and provision of services and mutual recognition of diplomas – providing better spaces for business to grow in other countries apart from the country of origin, especially in the services sectors.
- Free movement of capital – bringing the opportunities for more investment and exchanges of businesses in the region.
Then, what are the impacts on Indonesia business world?
1. International trade will occur very freely, more freely in AFTA era than in PTA (Preferential Trade Area) era. For example, in PTA, the government was still enabled to apply import duty of 1 to 5 percent or issue special policies to protect very sensitive local industries or products. On the contrary, in AFTA era, local products will be able to fully compete with foreign products. In reality, with the existing quality and the high tax and duty the businessmen mostly complain about, local products will find it difficult to compete. Vietnam and Cambodia are competitive in terms of having less expensive labours; while Singapore, Malaysia and Thailand are highly competitive in terms of high quality and good management.
2. Movement of labours will occur freely thereby giving an extraordinary impact on Indonesia. On one hand, the drastic competition among the local labours will be on. On the other hand, our labours will compete also need to compete with labours from other ASEAN countries. Consequently, we should create the standard of the skills for the local labours to be at least average or even higher as our own strength for attracting the flow of good jobs in the country. Whereas, we know that the quality of education in Indonesia is categorized as the worst among ASEAN countries. Therefore, education needs high attention too.
Competition to attract the investment for sustainable development will be tougher with the existence of free movement of capitals. In this respect, the retreat of Sony, Aiwa, Nike and other companies from Indonesia – in November-December 2002 – is very natural and should not be responded emotionally. It is quite possible that the local businessmen will precisely invest in other ASEAN member countries for better efficiency.
II. Gender Relevance
There were totally 28 participants consisting of 9 female participants and 19 male participants in ASETUC Workshop. The lack of female participants in the Workshop was resulted from the difficulty to find female participants in each Trade Union. Limited comprehension of the theme and weak preparation of female leaders in Trade Unions (ASPEK, FARKES, FGII, Kahutindo, FKUI-SBSI) are ones of the causes of absence of female participants. However, their activities in questioning and expressing good ideas are the plus points in the ASETUC workshop.
III. Objectives of Activity
1. To give comprehension of new concepts in ASEAN framework to labour activists.
2. To give comprehension of the impacts and opportunities of ASEAN Economic Integration & Free Trade Agreement.
3. To formulate the strategic measures to anticipate the impacts and opportunities upon FTA.
4. To optimize the roles of trade unions as the part of Civil Society Organizations (CSOs) in any decision making process in ASEAN.
IV. Concept of Activity / Sequence of Activities and Topics Discussed / Results
· Symposium, Public event, (Sequence of ) Seminar(s)
· Decision makers, young leaders
ASETUC (ASEAN Services Employees Trade Union Council) program was held in the form of workshop and conference at Le villa Resort for two days. The ASETUC workshop enabled the participants to question and answer thee speakers. The workshop is the first ASETUC Indonesia program by presenting the leaders of Trade Unions that are affiliated to UNI Apro, PSI AP, BWI AP for comprehensive understanding of FTA and economic integration in relation to the Globalization challenges in ASEAN Region.
Therefore, the first agenda in the ASETUC workshop was to visit the Office of the Secretariat of ASEAN at Jalan Sisingamangaraja, Jakarta to get to know the roles of CSOs and Trade Unions in ASEAN process, and the most important thing is to know ASEAN in the general picture. The delegation to the meeting at the Secretariat of ASEAN was warmly welcomed by Mr. Donald Tambunan and his staffs simultaneously giving presentations on ASEAN.
In the visit to the Secretariat of ASEAN, the participants of the ASETUC Workshop could hear the explanation of the strategic roles of ASEAN. ASEAN is open to Trade Unions of the respective countries joining ASEAN including Indonesia to contribute constructively to the policies. All issues related to labours will be discussed in the meetings among the ministers and officials of labour affair. As a platform for trade union community in services sectors, ASETUC’s roles are to raise up the concerns of our employees, bring them to ASEAN level for discussion and to influence the existing policies on labour issues in ASEAN for better outcomes.
.jpg)
In the next session, in the meeting at Le villa Resort Mr Kun Wardana Abyoto presented ASETUC and Ms. Haiyani Rumondang (as the director of PHI and Social Security, the Ministry of Labour and Transmigration of Indonesia) presented meeting results between the ministers of labour affairs being the members of ASEAN in Hanoi in May 2010. In this session, the strategic roles of ASETUC in guarding and influencing the policies related to labours in ASEAN region to encounter the side effects of FTA and Economic Integration in ASEAN region were mostly discussed. In addition, Mr. Kun also discussed the institutionalization and ideal structure of ASETUC in optimizing its strategic roles in ASEAN region.
.jpg)
Ms Haiyani Rumondang explained several strategic results related to the meeting of labour officials and ministers in Hanoi namely improving the Economic Integration in ASEAN region or usually called ASEAN Economic Community (AEC) among other issues. Mr Kun and the participants made an interactive dialogue of the roles of ASETUC in medical sector and handling migrant labours. In the dialogue, he explained that ASETUC plays its roles to provide the ideas from the employees’ perspectives and contribute to the ASEAN policies making decision process in relation to the matters pertaining to migrant labours being an important issue for Indonesia to date.
.jpg)
The director of IGJ (Institute Global Justice), Mr. Bonie Setiawan, presented the Overview of ASEAN. Here, the participants were asked to be critical to Globalization and its product namely Free Trade Area (FTA). Mr Bonie said “I have explained ASEAN, the structure and the nature behind international relationship? What is the relationship of ASEAN and WTO? ASEAN and corporates? Corporations in ASEAN are given a room to make decisions but labours therein have no room.” At least, the explanation stimulated the participants to be critical. He asserted that the root of injustice in the world is WTO (World Trade Organization) with not yet equal shares and influences.
.jpg)
“The Impacts and Opportunities of ASEAN Integration on Indonesian Business World and Labours” in morning session were discussed by Mr. Shofwan Choiruzhad, Sos, MA of the University of Indonesia and Ms Iftida Yasar of Apindo and Kadin. Both speakers shared the same point of views on the implementation of FTA in developing countries, saying that ASEAN countries need good preparation to benefit from this model. In his presentation, Mr. Shofwan presented his subject entitled “prevention is better than cure”. Strategic and comprehensive preparation to encounter the side effects of free market is a smart move for all ASEAN countries. These can also be done through negotiations, lobbies to secure the real benefits for developing countries in this arrangement.
Ms Iftida Yasar mostly spotlighted the weak competence of the labours in Indonesia than those in the other countries. The local labours must be developed to be productive and to be equipped with better and higher skills.
The last session discussed the strategic measures of ASETUC in Indonesia. The session was filled with discussion by the representatives of trade unions in Indonesia namely ASPEK Indonesia, Farkes, and Kahutindo. Mr. Muhamad Rusdi, the Secretary General of ASPEK Indonesia, in lieu of Mr. Jufny of Farkes presented the National Social Security System. Mr. Muhamad Hakim, the President of ASPEK Indonesia, presented the Social Partnership. Mr.Khoirul Anam, the President of Kahutindo, presented the Labour Competence Standards in Indonesia.
The ASETUC Workshop was closed with discussions of the strategic measures taken by ASETUC in Indonesia and the preparation of the structure of ASETUC Indonesia and Programs to be carried on by ASETUC in Indonesia.
In the last session, the leaders of trade unions present in the workshop realized the significant meaning of the struggles to anticipate AFTA and ASEAN Economic Integration in ASEAN region. Subsequent meeting to discuss tactic measures of ASETUC in Indonesia has to be held soon because ASEAN Secretariat opens an opportunity to CSOs to be the recognized Affiliates of ASEAN. Therefore, the acceleration of the structure in ASETUC Indonesia is important and highly expected because several countries in ASEAN have formed ASETUC working group in their countries.
ASETUC workshop was a significant event for the leaders of trade unions in Indonesia to anticipate to the rapid changes of the economy in consequence of Globalization and free trade agreements. It is suggested that all Trade Unions in Indonesia should equip themselves with the basic comprehension of ASEAN and its dynamic.
Rapporteur: Bro Darda/ Sis Nurus (ASPEK)
Editor: ASETUC Secretariat asetuc2007[at]gmail.com
Click to download Presentations
In English
Economic Globalization: ASEAN FTA & Labour
In Bahasa Indonesia
ASEAN China Free Trade Agreement
Standar Kompetensi atau Kesempatan Kerja
SJSN: PR Besar Perjuangan Gerakan Buruh Indonesia
