Indonesian Accounting Professionals and ASEAN’s Mutual
Recognition Arrangement; An Exploratory Study of
Employability Factors
E Mayangsari
1
, M Hermawan
1
, V Juwono
2
1
International Business Program, Management Department, BINUS Business School
International Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia
2
Department of Public Administration, Faculty of Administrative Science, Universitas
Indonesia
1
vjuwono@ui.ac.id
ABSTRACT
This paper attempts to explore employability factors of Indonesian accounting
professionals in ASEAN region. A Career EDGE model is used as the
employability framework. A qualitative approach is employed to obtain in-depth
information and achieves insights from employer, employees, and experts. The
finding showed that career development learning, experience (work and life),
degree subject knowledge, skills and understanding, generic skills, emotional
intelligence, self-confidence, and reflection and evaluation are factors that
influence employability. Indonesian accountants need to enhance degree subject
knowledge, skills and understanding, generic skills, and emotional intelligence,
particularly in IFRS standards and communication skills. Managerial and
theoretical implications are mentioned, as well as limitation and recommendation.
Keywords: Accounting, Employability, Mutual Recognition Arrangement
1. INTRODUCTION
In support of the ASEAN Economic Community, the Mutual Recognition Arrangement
(MRA) was implemented in 2015 to enact professional certification and standardization among
workers in select few professions; in particular, accountants. By having an internationally
acknowledged skill verification, the MRA hopes to be able to circumvent the inherent
differences in education system, cultural, and socio-economic situations across ASEAN
member countries. A study by McCarthy [1] stated that graduates with verifiable skills would
be able to find more opportunities than the ones without verifiable skills. Therefore, it is
essential for ASEAN member countries to ensure its skilled professionals can attain a certain
standard of quality and competency, to compete with the other employees from the other
ASEAN members.
One of the most critical means for private sector development to attract foreign direct
investors and to raise the confidence of domestic investors is through achieving sustainable
public financial management reforms, as well as promoting a more effective corporate
governance, accountability, and transparency. Research by Zaidi and Huerta [2] revealed that
there is a positive correlation between the adoption of IFRS and the economic growth of the
adopting countries as observed five years into implementation. Coffee [3] further supported the
idea that improvement in transparency and accounting standards signified an increase in quality
WoMELA-GG 2019, January 26-28, Medan, Indonesia
Copyright © 2019 EAI
DOI 10.4108/eai.26-1-2019.2283142