Me and my colleague Deasy Pane of Bappenas look at how the follow-up regulation from Job Creation Law may restrict trade a great deal. In turn, this has the potential to distort the economy further with more red tape instead of less (paywalled)
Krisna Gupta, Australian National University and Wishnu Mahraddika, Australian National University
Tren mobil listrik mulai datang dan Indonesia berada di waktu serta tempat yang tepat.
Walau mendapatkan berbagai macam perlawanan dari publik, Undang-undang (UU) Nomor 11 Tahun 2020, atau lebih dikenal dengan sebutan UU Cipta Kerja telah resmi tercatat dalam lembar negara. Untuk itu pemerintah harus berupaya agar bisa memaksimalkan UU ini untuk lebih menyejahterakan para pekerja. Salah satu cara untuk meningkatkan penghasilan para pekerja adalah dengan meningkatkan partisipasi Indonesia dalam rantai pasok global, dimana sebuah perusahaan bisa menghubungkan sebuah produk dari penghasil, pengolah, distributor, hingga konsumen akhir dalam skala global.
Indonesian government has been working hard in engaging with the world market as average tariff keeps on decreasing. However, it seems to follow the global trend, that is, relying on Non-Tariff Measures (NTM) to regulate its market instead to protect its industries. This paper inspects whether these measures are actually hurt firms by limiting their access to better quality and cheaper foreign inputs. This paper builds from Amiti and Konings (2007), inspecting the impact of trade policy shocks to firm’s Total Factor Productivity (TFP). This study finds that tariff and NTMs are hurting firms TFP significantly and causing less employment. The impact is less severe for bigger firms, confirming heterogenous effect of trade policy. The result suggests unintended consequences of protectionism in Indonesian market. Moreover, as the country is looking to boost foreign investment, more protectionism may be regulated to keep markup in the domestic market high as an incentive for foreign investors.
Indonesian government seem to wish IA-CEPA will bring many investment to its country. We suggest the opposite might happen. See full publication in East Asia Forum
COVID-19 may punishes commodity exporter a bit more severe than other economies. As a country dependent on commodity for its employment and tax revenue, Indonesia needs to be prepared.
During the pandemic, most countries in the world reacted with export ban to secure availability of important product such Personal Protective Equipment (PPE). We analyze why meddling with trade to solve scarcity problem may lead to even more scarcity problem, and suggest better ways to do it. See the full publication in the East Asia Forum.
Policy brief on the Indonesian manufacturing industry, focused on the decrease in Indonesia’s Purchasing Managers’ Index (PMI), submitted to the Indonesian minister of industry, Agus Kartasasmita, on 5 May 2020.
A book chapter written in Indonesia. Available at online stores in Indonesia.
Book Title: Mewujudkan Indonesia 4.0: Kumpulan Pemikiran Pelajar Indonesia di Australia.
Editors: Denny Irawan, Wasisto Raharjo Jati, Oscar Karnalim, Asrul Sidiq (Eds)
A review on the book World Trade Evolution: Growth, Productivity and Employment ‐ edited by Lili Yan Ing and Miaojie Yu (eds)