Indonesia Human Capital Competitiveness in the ASEAN Economic Community (AEC) Era

ASEAN Economic Community (AEC) is the Free Trade Area among ASEAN Members States (AMSs). Goods and services had been freed entrance a country after the establishment of MEA by December 2015 [1]. The implementation of MEA had the negative and positive impact on AMS especially Indonesia [2]. The AEC agreement contain five aspect that its distribution can't be limited are goods distribution, services distribution, capital market, the investment, and skilled and trained workers. The Government of Indonesia has regulate foreign labour in ministry regulation (Permen) Number 16 2005 to protect local labour. The Province Minimum Wage (UMP) Issue will be correlated to AEC implication on Indonesia industrial climate. The AEC forces the Indonesia human capital to become more skilful and fully trained, otherwise the competition will be dominated by most proper country.