PROFESSIONAL  SERVICES  TRADE  AND  R&D  SERVICES  TRADE    

Presented  by:  Ms.  SITI  TRI  JOELYARTINI  

The First Seminar on Promoting Services Trade, November 29-30,2016, ASEAN-Japan Hall, Tokyo, Japan

OUTLINE 2

�  A Brief about ASEAN MRA �  MRA’s on : Engineering Services, Architectural

Services, Tourism Services �  Mode 3 - Indonesia’s Commitments on : R & D

Services, Legal Services, Accounting Services �  ASEAN Agreement on MNP �  Threats and Challenges on Implementing MRAs �  Expectations

A  BRIEF  ABOUT  ASEAN  MRA 3

MRAs  on  Engineering  Services

MRAs  on  Engineering  Services  was  signed  on  December  9th,  2015  in  Malaysia.    •  Indonesia   is   the   Secretariat   Permanent   for   ASEAN   Chartered   Professional   Engineers  

Coordina8ng  Commi9ee  (ACPECC).    

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AMS  31st ACPECC   32nd ACPECC  

Cummulative   New Application   De-Registration   Cummulative  Brunei Darussalam   6   2     8  Cambodia   30   0     30  Indonesia   747   97     844  Lao PDR   11   0     11  Malaysia   261   23     284  Myanmar   200   41   2*   239  Philippines   174   31     205  Singapore   235   17     252  Thailand   123   35     158  Viet Nam   196   0     196  Total   1,983   247   2   2,227  * Note: De-registration of Myanmar’s 2 ACPEs is as per approval at the 31st ACPECC  

HOW TO GET AN ACPE AND RFPE? Graduate Engineer

Professinal Engineer

ASEAN Chartered Professional

Engineer (ACPE)

Registered Foreign

Professional Engineer (RFPE)

Requirements : 1.  Having 7 years of experiences after

graduating from Bachelor Degree; 2. Having 2 years of those experiences in

handling or being in charged of significant engineering work – not in assisting position;

3. Have met the requirements of Continuing Professional Development;

4. Must agree to be bound by local and international ethics and professional conducts. Also must agree to be held accountable individually.

Requirements: 1.  Graduates of

Accredited Technical High School (Professional Program)

2. Acquired professional certificates or certificate of competencies. Furthermore, one shall be registered as expert who has a right to practice independently.

Requirements: 1.  Registered as

ACPE; 2. Submitted the

application to PRA of each host country;

3. Paid the registration fee;

4. Having collaboration works with licensed engineers in the host country.

MRAs  on  Architectural  Services  

MRA  on  Architectural  Services  was  signed  on  November  19th,  2007  di  Singapura.  

 

 

•  Architectural  Projects  in  this  region  will  be  published  on  ASEAN  Architect’s  website,  so  the  professional  Architects  have  the  opportunity  to  work  in  other  AMS  

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AMS New Submission Cummulation at AAC 28

Brunei Darussalam 5 9

Cambodia - 4 Indonesia 21 111 Lao PDR 2 9 Malaysia 1 36 Myanmar - 12 Philippines 10 62 Singapore 8 86 Thailand 1 25 Viet Nam - 10 Total 48 364

MRA on Tourism Professional (MRA-TP) was signed on January 9th, 2009 at Vietnam

•  MRA-TP has covered 32 positions specifically for hotel

and travel services. ASEAN is now ready with the ASEAN Common Competency Standards on Tourism Professionals (ACCSTP) for those 32 positions

•  For those 32 positions, ASEAN has also identified

Regional Qualifications Framework and Recognition System (RQFRS) which covered 52 qualifications starting from Certificate 2,3,4, Diploma, up to Advance Diploma. Further, the 242 unit of competences have already set

•  ASEAN has targeted to certified 6000 professionals

under tourism services. To reach this goal, ASEAN has established ASEAN Tourism Professional Registration System (ATPRS)

•  To support the mobility of tourism professionals across

ASEAN, the Regional Secretariat has settled down in Jakarta

Mechanism of Tourism Professional Mobility Model

0%

1%

2%

3%

4%

5%

6%

7%

8%

9% 2000 2011

R&D and Other Business Activities Export Shares to the World

•  In R&D, Indonesia’s share was in 7th position, ahead of only Viet Nam and Cambodia.

•  Thailand is one rank above Indonesia, its world share was three times that of Indonesia.

•  China and India experienced a leap with each grew more than 4 percentage points between 2000 and 2011

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INDONESIA’S COMMITMENTS FOR R&D SERVICES

Indonesia’s commitments at The 9th Package of ASEAN Framework Agreement on Services (AFAS 9) : 1. Interdisciplinary R&D (CPC, limited to Industrial Activities, FDI is allowed through joint venture up to 51% 2. Research and Experimental development services on linguistic and languages (CPC 85204), limited to foreign language only, FDI is allowed through joint venture up to 51%

Indonesia’s commitments at ASEAN-Japan CEP: Interdisciplinary R&D (CPC853, limited to Industrial Activities), FDI is allowed through joint venture up to 35%, while Mode 1 and 2 are “None” and 4 are”Unbound’

INDONESIA’S COMMITMENTS FOR BOOKKEEPING, LEGAL, AND ACCOUNTING SERVICES

Indonesia’s commitments at The 9th Package of ASEAN Framework Agreement on Services (AFAS 9): 1.  Accounting, Auditing and Bookkeeping Services (CPC 86220,

Bookkeeping Services except Tax Return), FDI is allowed through joint venture up to 51%

2.  Legal Services (Advisory services in home country law, and international law) (CPC 861). Mode 1 and 2 are “None”, while Mode 3 is “Unbound” Definition : Lawyer (advocate) is person who has the profession of providing legal service in and outside the court. International law means law established by international treaties and conventions as well as customary law

Indonesia’s commitment at ASEAN-Japan CEP: 1. Legal Services (Advisory services in home country law, and international law) (CPC 861). Mode 1 and 2 are “None”, Mode 3 is “Unbound”, and Mode 4 is “Unbound” except for foreign lawyers (advokat). Foreign lawyers (advokat) are allowed to work or take part in Indonesian law firm as employees or as experts in International Law, but shall not appear in courts and/or undertake legal proceedings under any circumstances.

FOREIGN ACCOUNTANT IN INDONESIA 13

�  Public Accountant Law states Foreign Public Accountant can practice as Public Accountant in Indonesia as long as there is MRA between the government

�  Indonesia has made commitment in the MRA on Accountancy to facilitate mobility of accountancy services professionals among the ASEAN member states. But the scope of MRA is not including auditor who signs audit report and the other accountancy services that requires domestic regulation.

ASEAN  MNP 14

ASEAN Agreement on MNP Was signed by the ASEAN

Economic Ministers on November 2012 in Cambodia.

Indonesia has ratified the Agreement on Movement of

Natural Persons (MNP) through Perpres 53/2015.

ASEAN Agreement on MNP is aiming to facilitate the movement of natural persons

engaged in the conduct of trade in goods, trade in services and investment between Member

States

Any commitments under the ASEAN MNP were made based on the offer for Mode 4 at the 8th

AFAS Package, Financial Services Commitments and Air Transport Services

Commitments under ASEAN and AANZFTA.

Such natural persons may include: (i) Business Visitors, (ii) Intra Corporate Transferees (ICT) for Director, Manager and Specialist and (iii)

contractual service suppliers

Principles

Define the rights and obligations to promote the

movement of natural persons

Define an efficient and transparent procedures related to the mechanism of applying

temporary working permit

Respect other countries’ borders and protect local and permanent

workers among Member Countries

Threats and Challenges on Implementing MRAs

15 Threats Challenges

All MRAs have not referred to ASEAN Standards and AQRF, except MRA on Tourism Professionals

Some provisions under domestic regulations limit number of jobs only for local people

Institutional Systems have not established yet

Limitations for foreign professionals to acquire working visa

Information System on Job Market across ASEAN has not created yet

Undefined economic need tests hinder foreign professionals to enter the market

Difficulties on linking and matching education and working experiences between countries

Foreign professionals often find obstacles to acquire licenses from a professional association

Profession Qualifications Institutions

Engineer •  Engineering graduates

•  Holding license of independent practices

•  Having 7 years working experiences

•  Having certificate of competencies

•  Professional Regulatory Authority

•  Monitoring Committee

Architect •  Architecture graduates

•  Holding license of independent practices

•  Having certificate of competencies

•  Professional Regulatory Authority

•  Monitoring Committee

Tourism Professionals

Having certificate of competencies

•  National Tourism Professional Board

•  Tourism Professional Certification Board

•  Common ASEAN Tourism Curriculum

Examples of Requirements

EXPECTATIONS: Japan’s Investment and ASEAN Worker

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�  Japanese FDI in the ASEAN region heavily increased year by year. Japanese multinational enterprises shifted their labour-intensive goods and production processes, such as assembly, to industrialized countries, including the newly industrialized economies and the ASEAN Member States, to exploit inexpensive labour costs.

�  ASEAN Member States’ tariff reductions (both AFTA and MFN tariffs) also have thus far motivated Japanese multinational enterprises to relocate their affiliates within this region, which accelerated industry concentration. Japanese multinational enterprises regard the ASEAN region as an important alternative to China as an FDI destination. If ASEAN integration can improve business environments, the region will probably attract further FDI from Japan.

�  ASEAN Integration heightened the impact of comparative advantage within ASEAN on the regional industrial structure. Such changes affected the regional labour demand. Japanese multinational enterprises have tended to shift the unskilled labour-intensive products (and production processes) from the older ASEAN Member States to the CLMV countries. Skill upgrading has been observed within the region, partly because the multinational enterprises tend to offer “good jobs” in their host countries.

�  In the era of ASEAN workers’s integration, Japanese investment in ASEAN are expected to be followed by hiring ASEAN workers in their projects or even in their companies.

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