Problem in an Entrepreneurship Culture: Indonesia's Challenge in Facing ASEANEconomic Community (AEC)

Abstract

ASEAN Economic Community (AEC) will be enacted by the end of 2015. The realization of the AEC has implications for the existence of the free entry and exit of goods, services, capital, and human resources in various countries of ASEAN region. Various obstacles that have hindered the movement of a variety of resources and economic activities in the ASEAN region, such as tariff and non-tariff started abolished. Consequently, the level of competition in the ASEAN region will be intense. The question is whether Indonesia is ready to face the AEC or not? The results of the analysis showed that Indonesia is the largest market in the ASEAN region. The weak entrepreneurial culture affects the ability of Indonesia to develop the domestic market prospect. It could be a warning to boost economic competitiveness, productivity, and quality of the domestic products. The government should encourage the growth of entrepreneurship in Indonesian society. It can be done by involving educational institutions in the level of elementary up to university, raising research and development budget and promoting entrepreneurship training.