ASEAN FTA and other agreement schemes.
What a coincidence i wrote about this topic, its complicated, boring and its a conceptual agreement that occured in the cloud (my words for high government policies, offices, bureaucrats etc.), its not down to earth and tangible as i usually wrote about.
ASEAN free trade agreement and other agreement is an agreement was composed in order to ease goods transfer from one country to other, will less barrier. Whats the point of it?
As ASEAN countries progress their development, bureaucracy and economy, ASEAN free trade only become misery to countries that left behind its bureaucracy.
With ASEAN FTA, it become more cheaper to deliver cars from Thailand to Surabaya than before.
Only a few companies eager to build businesses in least progressive countries like Indonesia and Cambodia than put its feet/representative/plant/ headquarter in Malaysia, Singapore or Thailand. There are more conducive, more investment friendly, most attractive, most sexy, politically stable etc.
So Indonesia as the most populated ASEAN country only become the market, but the plant is in other country. The analogy to EU, Indonesia has its population size like Germany (the motor of EU), but Singapore has its GDP size.
As Indonesia is craving for foreign investment, other neighbour are sexier in terms of infrastructure, bureaucracy, labour dispute and security. So?
By invite businesses build plants in Indonesia, it will also increase Indonesias economic value. "Hey, our economy is good cos Toyota has plant here bla3x..."
Common people/ general
public wont feel the misery, common people will enjoy "more affordable" cars (if the price is decreasing, but i have doubt on it), more affordable and good quality imported products etc.
Those misery are felt by economic experts, businessmen and the government in the election. Opposition or pressure group will emphasize this "failure" to build own economy to gain vote.
Solution? Either fixed the license process in regional level, rebuild the infrastructure or enjoy the misery deeper.
2014 will be the judgement year for ruling party, due to trade deficit /misery that runs deeper.
