• Tuesday, 17 July 2018

Preparing Indonesia in Global Trade

TPP, ekonomi, perdagangan

Investment Coordination Board (BKPM) started to sort out proposal list on global market businesses and set the requirement in investment field (Negative Invest List or DNI). This suggestion considered to be given much more investment opportunities to foreign investors. This fact interpreted as ‘the government step that want to give certainty to investors want to go in the sector’. This is described by the head of BKPM Franky Sibarani. The list has rising many questions on the direction of the local industries.

Meanwhile, an economic experts predict that in competition of trans pacific partnership (TPP), agricultural and fishery products will become some of the sectors which more are ready to globally compete. So much to prepared by the government and the industry before Indonesia join TPP in 2018. Institute for The Development of Economics and Finance (Indef) convey that this pact would progress to all Indonesian markets exports. Nevertheless, it is argued that a bigger market will bring large disorder if the country is not able to provide high quality products.

TPP is a concept which assumes the boundaries of market to be renewed. Indef Executive Director Enny Sri Hartati take an example of this concept, she said it is like cleansing a sewer to make water flowing. “The question is whether you have the water or not,” she said. Enny ensure that without good economic environment and strong business, TPP will have a bad impact on counterproductive and Indonesian products will be more expensive and less competitive. If this had happened, Indonesia would suffer massive imports in the middle of stagnant exports.

According to Enny, agriculture and fisheries products are currently most likely to compete in various sectors of industries in TPP. Meanwhile, other sectors are still needing more coordination between departments. This is to improve the ability of Indonesia to compete in the product quality. “It is the duty of Minister of Trading to abolish some trade obstacles. But after that, questions that need to be answered is whether the product will be sold?” he said.

The Minister of Trading also said that will prepare month in three years, a year after signing trading agreement with the European Union. About the preparation, The Ministry also said that it is necessary to set target and impossible to do something without a deadline. According to The Minister, if there is no setting time, the job will not been resolved.

Formerly, Minister of Trading Thomas Lembong highlighted two reasons why Indonesia should join in TPP. First, TPP may be the only way to develop Indonesian trading. Second, Indonesia has more developed and advanced enough for the agreement. The Ministry said it was too early because Ministry needs to study TPP draft that contains 6,000 pages. At the same time Ministry needs to focus in preparing economy agreement to the European Union. This pact, according to the Minister, would likely signed for a period of two years from now.

TPP will involve a number of countries, like the United States, Canada, Japan, Australia, Mexico, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam, including Indonesia. Some communities still questions advantage of the agreement, even some says that the contracts will injure and bring disadvantageous to Indonesia.

Grace Eldora

Grace Eldora Sinaga is a journalistic practitioner, graduated from Faculty of Communication Study Majoring Journalism, Unpad. She loves to learn Asian cultures and photography. She can be contacted at gracel@buminawa.com or twitter @glaceldo.