Research Article Open Access

Human Capital Competitiveness in ASEAN Economic Community (AEC): The Role of Regulation, Indonesia Experiences

Salmiaty Taty1, Bayu Taufiq Possumah2 and Ridwan Ismail Razak3
  • 1 Sekolah Tinggi Ilmu Ekonomi (STIE) YPUP Makassar, Indonesia
  • 2 School of Social and Economic Development, Universiti Malaysia Terengganu, Malaysia
  • 3 Educational Development of South Sulawesi, Indonesia


The AEC is an economic integration between ASEAN countries with the creation of a free market generally in the context of capital, goods and services and labor. The AEC opens the gate for all countries to invest and have better mutual cooperation. Indonesia experienced a big leap from 50 to 37 in the World Economic Forum (WEF) competitiveness ranking. As the largest population in the ASEAN, Indonesia must work harder to compete with the advanced educated labor force from Singapore, Malaysia and Thailand. Some challenges to develop the human capital. The problems that exist in the context of human resources and labor in Indonesia today such as lack of expertise, low education, inadequate facilities, low competitiveness, unemployment, imbalance salaries, low productivity and many others, but these problems do not make Indonesia retreat and avoiding the free market competition. MEA 2015 should not lead Indonesian labor plunged in their own home, but MEA expected to drive Indonesian workers able to exchange experiences and advance skill from other countries.

American Journal of Applied Sciences
Volume 14 No. 2, 2017, 267-273


Submitted On: 27 September 2016 Published On: 8 February 2017

How to Cite: Taty, S., Possumah, B. T. & Razak, R. I. (2017). Human Capital Competitiveness in ASEAN Economic Community (AEC): The Role of Regulation, Indonesia Experiences. American Journal of Applied Sciences, 14(2), 267-273.

  • 1 Citations



  • Human Capital
  • Regulation
  • Competitiveness
  • ASEAN Economic Community