Indonesias Trade Strategy Moving Forward to Serve the World - - PowerPoint PPT Presentation

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Indonesias Trade Strategy Moving Forward to Serve the World - - PowerPoint PPT Presentation

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Indonesias Trade Strategy Moving Forward to Serve the World Indrasari Wisnu Wardhana Director General of Foreign Trade, Ministry of Trade Trade, Tourism and Investment Forum, ICE-BSD, 17 October 2019 The World Economy 2019 19 the World

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Indonesia’s Trade Strategy

Moving Forward to Serve the World

Indrasari Wisnu Wardhana Director General of Foreign Trade, Ministry of Trade

Trade, Tourism and Investment Forum, ICE-BSD, 17 October 2019

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

2

The World Economy

2019 19

the World Economy grows at

3.2%

An Anti-Glob lobaliz alizatio ation Countries adopting Import Restrictiveness Measures

Multilateral Trading System has been challenged

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3

Indonesia is the 4th most favourite investment destination

2019 2025—2030 2050 300 million of population

GDP per capita of USD 15,000 000 60% 60% of population is in productive age

3 4 The 3rd largest economy in Asia The 4th largest economy in the world

The Indonesian Economy

The Indonesian Economy grows at 5.2% Indonesia is the 16th largest economy in the world

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

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

Top 6 Export Priorities

Source: Ministry of Trade of Indonesia, 2019

4

Furniture & Wood Products| Food & Beverages | Textiles & Apparel | Automotive | Electronic | Chemical Products

131,8 132 153 162,8 175 18,6 13,1 15,7 17,1

2015 2016 2017 2018 2019

Export Target in 2019

Exports of Non-Oil and Gas grow by 8%

reaching USD 175 billion in 2019

Non-Oil and gas Oil and Gas

Exports (USD billion)

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5

While the world demand consists of: 81% manufactured goods and 19% primary goods,

46% Indonesia’s exports are still resource-intensive products Internal factor: Indonesia’s main export products

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External Challenges

World Uncertainties

  • Trade War and Anti-Globalization
  • Brexit
  • Fall of commodity prices
  • The role of WTO is questioned

Ind ndus ustry try 4. 4.0

6

Mini nistr try of Trade of the Republic ic of Indonesia ia – www.kemendag.go.id

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Indonesia’s Export Strategy

Refocusing on export products from primary products to industrial or processed products and diversifying export products Improving import management Establishing trade agreements with Main Trading Partners and New Potential countries Expanding exports to non-traditional markets Intensifying promotion through Trade Expo, Trade Mission, and Business Matching Promoting Exports in Services Creating a conducive trade climate

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

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Improving Bilateral Trade with Main Trading Partners

Indonesia and India: bilateral trade target

USD 50 billion in 2025

Indonesia and Korea: bilateral trade target USD 30 billion in 2022 Signing of Indonesia—Australia CEPA 4 March 2019 Indonesia and US: bilateral trade target

USD 50 billion

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

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FOUNDER

  • Brunei. Cambodia. Indon

dones

  • esia. Laos. Malaysia.
  • Myanmar. Philippines. Singapore. Thailand.
  • Vietnam. Australia. China. India. Japan. South
  • Korea. New Zealand.

RCEP RCEP

50 50% % of Global

Population

30 30% % of Global

Trade

28 28% % of Global

FDI

Improving Exports in East Asia

9

G20

Mini nistr try of Trade of the Republic ic of Indonesia ia – www.kemendag.go.id

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10

8

15

12

1990—2015

2016 2016—2019 2019

Target Concluded in 2020

Trade Agreements Trade Agreements and Review Trade Agreements and Review

Boosting Exports to Non-Traditional Markets

1. ASEAN Free Trade Area (AFTA) 2. ASEAN—China FTA (ACFTA) 3. ASEAN—India FTA (AIFTA) 4. ASEAN—Japan CEP (AJCEP) 5. ASEAN—Korea FTA (AKFTA) 6. ASEAN—Aus & NZ FTA (AANZFTA) 7. Indonesia—Japan EPA (IJEPA) 8. Indonesia—Pakistan PTA (IP-PTA) 1. Indonesia—Korea CEPA 2. Indonesia—Australia CEPA 3. Indonesia—Chile CEPA 4. Indonesia—EFTA CEPA 5. MOU Indonesia—Palestine 6. Indonesia—Mozambique PTA 7. ASEAN—HK FTA & Investment 8. ASEAN—Japan Inv, Service & MNP 9. 10th AFAS 10. 4th ACIA 11. ASEAN Framework in e-Commerce 12. Review Indonesia—Japan EPA 13. Review Indonesia—Pakistan PTA 14. ASEAN Trade in Services Agreement 15. ASEAN Trade in Goods Agreement 1. Regional Comprehensive Economic Partnership (RCEP) 2. Indonesia—EU CEPA 3. Indonesia—Morocco PTA 4. Indonesia—Tunisia PTA 5. Indonesia—Bangladesh PTA 6. Indonesia—Turkey CEPA 7. Indonesia—Iran PTA 8. Indonesia—Eurasia FTA 9. Indonesia—Djibouti PTA 10. General Review AANZFTA 11. General Review AIFTA 12. Indonesia—Pakistan Trade in Good

Source: WTO, ASEAN Secretariat, Ministry of Trade retrieved on 11 September 2019

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The Government of

Mini nistr try of Trade of the Republic ic of Indonesia ia – www.kemendag.go.id

11

Ex Expo ports ts En Enha hanc nceme ement nt

Increasing Indonesia’s Competitiveness

  • Simplification of Exports procedure by easing of regulations of restrictions and

prohibitions (Surveyor Report and Export License);

  • Supporting high value-added exports (high & medium skill and high technology);
  • Optimizing trade remedies, safeguards, anti-dumping, and anti-subsidy.

The Government of

Managing Imports to Support Exports

  • Movements of controls from Border to Post-Border;
  • Easing the procedure to import intermediate goods for SME’s;
  • Continue to develop better online import-licensing system (INATRADE);
  • Increase the utilization of Bonded Logistic Center (PLB).

Development of Trade Facilitation

  • Utilization of counter trade scheme;
  • Increasing business facilitation in Special Economic Zone (SEZ);
  • Implementation of the obligation of Letter of Credit for export of certain products;
  • increasing the utilization of certificate of origins and establishing rules of origin

negotiations;

  • Improving INATRADE and OSS integration.
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Improvement of Exports Regulation

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

  • 1. Eliminating Export License for Coffee, only required exporter registration (ET) – Ministry
  • f Trade Regulations No. 109 Year 2018
  • 2. Eliminating recommendation from Ministry of Energy and Mineral Resources for export
  • f coal and coal product – Ministry of Trade Regulations No. 52 Year 2018
  • 3. Simplification of export mechanism for Non-subsidy Urea Fertilizer – Ministry of Trade

Regulations No. 114 Year 2018

  • 4. Letter of Credit requirement for export of certain products, National Insurance and

National Marine Freight – Ministry of Trade Regulation No. 94 Year 2018 jo Ministry of Trade Regulation No. 102 Year 2018.

  • 5. Revoke the provisions of technical verification for export of Crude Palm Oil and the

derivatives – Ministry of Trade Regulations No. 17 Year 2019

  • 6. Exemptions of verification for export of other fuel (BBL) derived from Crude Palm Oil and

derivatives – Ministry Of Trade Regulation No. 21 Year 2019

  • 7. Exemption of verification for export of natural gas which directly distributed out of border

through pipeline – Ministry of Trade Regulation No. 21 year 2019.

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1 Relaxing LS and recommendation, and improvement of licensing management 2

There are 11 Ministry of Trade Regulations related to import and 7 Ministry of Trade Regulations related to export that are proposed to amend for improvement :

  • 1. Ministry of Trade Regulations No. 85/M-DAG/PER/10/2015 Jo.

64/M-DAG/PER/8/2017 concerning Provision of Import of Textile and Textile Product;

  • 2. Ministry of Trade Regulations No. 125/M-DAG/PER/12/2015 concerning Provision of

Import of Salt;

  • 3. Ministry of Trade Regulations No. 82/M-DAG/PER/12/2012 concerning Provision of

Import of Cellular Phone, Handheld Computer and Tablets Computer;

  • 4. Ministry of Trade Regulations No. 110 Year 2018 concerning Provision of Import of Iron
  • r Steel, Steel Alloy and derivatives;
  • 5. Ministry of Trade Regulations No. 36 Year 2013 jo. No. 08 Year 2018 concerning

Provision of Import of Plastic Intermediate Goods;

  • 6. Ministry of Trade Regulations No. 40 Year 2009 jo. No. 09 Year 2018 concerning

Provision of Import of Glass Sheet;

  • 7. Ministry of Trade Regulations 117 Year 2015 concerning Provision of Import of Sugar;
  • 8. Ministry of Trade Regulations No. 31 Year 2016 concerning Provision of Import of Non

hazardous and non poisonous waste (Limbah Non B3);

  • 9. Ministry of Trade Regulations No. 97 Year 2015 jo Ministry of Trade Regulations No. 13

Year 2018 jo Ministry of Trade Regulation No. 97 Year 2015 concerning Provision of Import of Forestry Product; 10.Ministry of Trade Regulations No. 44 Year 2019 concerning Provision of Import of Horticulture Product; 11.Ministry of Trade Regulations No. 118 Year 2018 concerning Provision of Import of Used Capital Good.

  • 1. Ministry of Trade Regulations No 84/2016 Jo

Ministry of Trade Regulations No 12/2017 Jo Ministry of Trade Regulations No 38/2017 concerning Provision of Export of Forestry Industry Product (PIK);

  • 2. Ministry of Trade Regulations No. 51 Year

2012 concerning Provision of Export of Bird’s Nest;

  • 3. Ministry of Trade Regulations No. 109 Year

2018 concerning Provision of Export of Coffee;

  • 4. Ministry of Trade Regulations No. 122 Year

2018 concerning Provision of Export of Plants and Wild Animals Undefended by Law and included in CITES List;

  • 5. Ministry of Trade Regulations No. 53 Year

2019 concerning Provision of Export of Tin;

  • 6. Ministry of Trade Regulations No. 21 Year

2019 concerning Provision of Export of Oil, Gas and Other Fuel;

  • 7. Ministry of Trade Regulations No. 01/M-

DAG/PER/1/2017 concerning Provision of Export of Processed and Purified Mining

Propose

  • sed

d to Amend nd

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Thank You

Ministry of Trade

  • f the Republic of Indonesia

@Kemendag www.kemendag.go.id Kementerian Perdagangan