Indonesias Trade Policy amidst Trade Tensions Lili Yan Ing Lead - - PowerPoint PPT Presentation

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Sep 08, 2022 181 likes •277 views

Indonesias Trade Policy amidst Trade Tensions Lili Yan Ing Lead Advisor to the Minister of Trade of Indonesia Singapore, 29 August 2019 1 The World Economy 2019 19 The World Economy grows at 3,2% International trade is back to the

SLIDE 1

Indonesia’s Trade Policy amidst Trade Tensions

Lili Yan Ing Lead Advisor to the Minister of Trade of Indonesia

Singapore, 29 August 2019

SLIDE 2

Ministry of Trade of the Republic of Indonesia – www.kemendag.go.id

The World Economy

2019 19

The World Economy grows at

3,2%

International trade is back to the

1930s 30s

with average tariff rates of 32%

SLIDE 3

Ministry of Trade of the Republic of Indonesia – www.kemendag.go.id

G7: Canada, France, Germany, Italy, Japan, United Kingdom, United States E7: China, India, Brazil, Indonesia, Mexico, Russia, Turkey

E7 will be double size of G7 by 2050

20,000

40,000 60,000 80,000 100,000 120,000 140,000 160,000 2016 MERs 2050 MERs 2016 PPPs 2050 PPPs

G7 E7

GDP (USD bn, 2016 constant)

Note: MERs is Market Exchange Rates Source: The World in 2050 – Summary Report, PWC retrieved on 22 August 2019

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Ministry of Trade of the Republic of Indonesia – www.kemendag.go.id

10 15 20 25 30 35 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 Canada China France Germany Italy Japan United Kingdom

1.0 1.5 2.0 2.5 3.0 3.5 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 India Indonesia Poland Korea, Rep. Thailand Singapore (%)

Asia: 5 out the top 7 gainers in the share of manufacturing value added to the world

(%)

Source: Ministry of Trade Staff, reconstruction from Baldwin (2011)

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Ministry of Trade of the Republic of Indonesia – www.kemendag.go.id

Indonesian and ASEAN Economies

ASEAN Economy

GDP: USD 2,9 trillion

In 2018, the population

648 million people

2016—2018, ASEAN’s exports to the world grew

14%

Indonesian Economy

GDP: USD 1 trillion

In 2018, the population

263 million people

2016—2018, Indonesia’s exports to the world grew

12%

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Ministry of Trade of the Republic of Indonesia – www.kemendag.go.id

Intra—ASEAN Trade

85.4 163.7 263.4 281.5 344.6 22 25 25 24 23 20 21 22 23 24 25 50 100 150 200 250 300 350 400 2001 2005 2010 2015 2018 Intra Trade Share of Intra ASEAN Trade to the World

Intra ASEAN Trade (USD Bn) Intra ASEAN trade to trade with the world (%)

Source: UNComtrade, retrieved on 22 August 2019

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Indonesia’s Exports and Imports, 2015—2018

150.3 145.1 168.8 180 142.6 135.6 156.9 188.7

5 10 15 20 20 40 60 80 100 120 140 160 180 200 2015 2016 2017 2018 Exports Imports Export's Growth Export Growth (%) Exports, Imports (USD billion)

Intermediate Goods

75%

Consumer Goods 9% Capital Goods

16%

Composition of Imports in 2018

Source: Indonesia Statistics, August 2019

Ministry of Trade of the Republic Indonesia– www.kemendag.go.id

SLIDE 8

Indonesia’s Trade Agreements

In-effect Concluded, 2018—2019 On-going

1. Indonesia – Japan EPA
2. Indonesia – Pakistan FTA
3. ASEAN—China FTA
4. AANZFTA
5. ASEAN—India FTA
6. ASEAN TIGA
7. ASEAN—Japan CEP
8. ASEAN—Korea FTA

1. Indonesia—Australia CEPA 2. Indonesia—EFTA CEPA 3. Indonesia—Chile CEPA 4. MOU Indonesia—Palestine 5. Indonesia—Mozambique PTA 6. ASEAN—HK FTA & Investment 7. ASEAN—Japan Inv, Service & MNP

4th ASEAN Comprehensive Investment

Agreement (ACIA)

10th ASEAN Trade in Services (ATISA)
10th ASEAN Framework on Services
n E-Commerce

1. Regional Comprehensive Economic Partnership (RCEP) 2. Indonesia—EU CEPA 3. Indonesia—Korea CEPA 4. Indonesia—Turkey CEPA 5. Indonesia—Iran PTA 6. Indonesia—Bangladesh PTA 7. Indonesia—Tunisia PTA 8. Indonesia—Morocco PTA

Notes: Ministry of Trade Data, as of 8 August 2019

Ministry of Trade of the Republic of Indonesia – www.kemendag.go.id