2015 will be a very important year for the Indonesian economy. In just a few months away, AFTA (Asean Free Trade Agreement) or ASEAN free trade will prevail in Indonesia. In other words, Indonesia will be overwhelmed by more and more foreign products from neighboring countries. With the implementation of AFTA, the Indonesian market will be integrated with the markets of the other countries in the ASEAN region. The perpetrators of small and medium enterprises (SME) is the party that will directly feel the impact of AFTA. They are ready to face it?

In the last five years, the creative industry in Indonesia has become crowded with a growing number of small and medium enterprises (SMEs). Judging by the data of the Ministry of Cooperatives and Micro, Small and Medium Enterprises in 2012, the number of SMEs in Indonesia has reached 56.5 million units to 98.9 per cent. Some of the SME sector, among others, agriculture, livestock, fisheries, forestry, trade, hotels and restaurants, communication, and trade.

The number has grown to approximately 60 million SMEs this year, and is expected to continue to grow in the future. Moreover, with the growing onslaught of various parties from the world of business, government, to academia, to spread the spirit of entrepreneurship among young people in the country.

If it is associated with AFTA, Indonesia's position in the economic competition between countries ASEAN forum can certainly be said to be strong and significant. As the country with the fourth largest population in the world or the largest in Southeast Asia, as well as the largest area in Southeast Asia, Indonesia is also expected to become one of the world's economic power. However, before it can achieve the "dream", the growth of SMEs as the driving force and the backbone of Indonesian economy must continue to be encouraged.

Opportunities and Challenges AFTA

The opening of the ASEAN free trade opened up opportunities for SMEs in Indonesia to grow their business. "With AFTA, many SMEs Indonesia can enter the Southeast Asian market which may previously unattainable by them," said Danton Prabawanto, founder of PT Beon Intermedia (http://beon.co.id).

Danton itself is not a new player in the field of SMEs. Born in Jember, September 29, 1983 is pioneering Internet business in 2006 by establishing PT Beon Intermedia. One of the services of Beon is JagoanHosting.com, the domain hosting service provider.

Although the AFTA opens interesting opportunities for SMEs in Indonesia, but Danton warned that the challenges ahead were no less severe, given that Indonesia is a potential market. Every business and investors from other countries will definitely be racing to get in and enjoy the Indonesian market.

"The challenge for SMEs is not just looking for ways to expand their business, but also in thinking about how to deal with the increasingly fierce market competition and maintain market that she already has," said Danton.

In addition to these challenges, there are still some impact of AFTA are to be anticipated by the SMEs in the country. Among these is the emergence of a temptation for SMEs to become a broker of foreign-produced goods, which offer greater advantages than being a manufacturer in their own country. Another thing that needs to be anticipated is the possibility of the presence of imported goods at lower prices so as to attract the attention of consumers, as well as higher labor costs are quite high and influence the production costs.

To face these challenges, according to Danton, SMEs need to have the mental preparation beforehand. "In line with the new Indonesian government foundation, the main preparation that needs to be done is melakukanrevolusi mental. The SMEs Indonesia should be able to build their mental and have confidence in local knowledge. They should also seek to create and develop the local wisdom," he said.

Danton reminded, every town in every region in Indonesia have local knowledge or characteristics and strength of each. Local knowledge is what needs to be highlighted as the main force of SMEs in each region to face the AFTA.

In addition to promoting local knowledge, SMEs also need to improve services to consumers. Because, if the imported goods cheaper than domestically produced goods, of SMEs will find it difficult to compete because of the cost of production in the country is high. Therefore, a prerequisite to attract people to want to glance at the domestic product is to offer quality products and best services to consumers. It is also made by Danton to his business.

In the internet business sector which he struggled, AFTA is not really impacted since the beginning Beon already facing global competition. "To win the competition, we must implement a strategy to continue to maintain the quality of Beon services to its customers. We strive to provide services that would never be accepted by the customer when using similar services from providers in other countries," said Danton.

Expected: The Role of Government and IDEA

Although Indonesia has around 60 million SMEs, but the number was still somewhat lacking. This was due to the persistence of the obstacles that hinder the growth of SMEs in the country, especially in terms of human resources (HR). This constraint is also a challenge that must be addressed by SMEs in the face of AFTA.

"From the side of the market, Indonesia does have the potential largest market in ASEAN and many SMEs in various regions relative own the strength of the local potential of each. But in terms of the quality of human resources, the ability of SMEs to adapt in the face of the onslaught of imported products remains a challenge special, "said Danton.

Danton acknowledged the active role of the government is essential to improve the competence of human resources and SMEs Indonesia. Related to the AFTA, the government is also expected to prepare regulations to protect SMEs in the country, and provide capital support for SMEs.

If SMEs can feel the support from the government, Danton believes their skepticism towards the government will slowly disappear and replaced with confidence. Therefore, he himself as SMEs hopes in the new government today.

Besides the government, SMEs also expect active participation of the parties associated with the SME industry in the country. One is the E-Commerce Association of Indonesia or IDEA (Indonesian E-Commerce Association). IDEA is an organization that collects the e-commerce industry in the country.

"IDEA is expected to be part of the educational process for SMEs to improve quality standards, which include production, delivery speed, as well as after-sales service," said Danton. He also hoped the IDEA can help improve the competence and creativity of Indonesian SMEs to face the AFTA. "IDEA should also be able to become a facilitator for SMEs and the government to create a campaign about the strength of the local SMEs, as well as take an active role in creating regulatory and policy for the growth of SMEs."

No Need to Fear

Basically, Indonesia has natural resources and man more than any other country. If SMEs are able to put the power of these resources, they would be able to compete with foreign producers.

"When viewed from the entry of foreign products, SMEs have been hit by the rush of the actual products imported into the Indonesian market since over the last five years," said Danton. That's why, he believes SMEs Indonesia can still grow.

Danton reminded that for SMEs in Indonesia did not feel scared or threatened by the AFTA. "Fear will only mislead. Fear is only for losers. Spirit in our national anthem should be remembered and kept us wake up. Wake up wake up his soul for Indonesia Raya," he concluded.

(Restituta Ajeng Arjanti)