Opportunities and Challenges in Indonesia–China Relations: Service and Labor Sectors
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Free-trade agreement (FTA), which is basically an economic cooperation between countries, is practically indispensable from each country’s political development. A number of bilateral and multilateral FTAs were meant to foster trade and economic relations among the members with the hope that each country member will be more competitive in the international and regional levels. However, the FTA brings lots of consequences on regulation, infrastructure, and all the things necessary to meet the agreed standards, which usually include the traffics of goods, investment, finance, and services. The coming of foreign investment and products brings both positive and negative impacts on Indonesia. Among the political and security issues that Indonesia should deal with is its weakening control to manage the presence of foreign products. It includes, particularly, service products by foreign workers as well as their harmful effects on the domestic products. The question is whether Indonesia can utilize the agreement to fulfill its national and develop its labors’ skills. If not, Indonesia is at the risk of losing its sovereignty in service and labor sectors due to its inability to safeguard its national interests. This chapter attempts to answer the extent to which Indonesia’s interest in its relationship with China in the context of service and labor sectors. This paper begins with a general assessment on the needs and interests of Indonesia and China in the service and labor sectors.
KeywordsACFTA Foreign investment Indonesia’s interest Service and labor sectors
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