MAKALAH INTERNATIONAL TRADE
MAKER ( KEVIN HENANTA) (23215698)
Group 9:
-Kevin Henanta (23215698)
-Melvin JR
(27215779)
-Ria Dami Ulfa (25215873)
Indonesia Export Growth
Each country is never apart from
export and import activities. Import-export activities based on the condition
that every country has the characteristics of each resource and certainly these
characteristics differ from country to country. To complement and fill the gap
tersebutlah characteristics, import-export activities performed. It is also
important to note, indirectly, export and import activities have contributed
significant role in spurring economic growth in each country. Based on data
taken from the Ministry of Commerce of the Republic of Indonesia, exports and
imports are also included in the economic indicators of Indonesia. Indonesia is
a country rich in resources. However, if it is able to rule out the possibility
of Indonesia’s import value is more dominating than the value of its exports?
Export
According KBBI, understanding is the
delivery of merchandise exports abroad. The merchandise in question can be
physical goods or services. Export is one of the important benchmark to
determine how much economic growth in a country. Of these export activities, it
can be assured of business activity in the real sector more awake. Production
of goods not only rotates in the country only but also rotates in international
trade. That is why, in the long term export activities can be a hero in foreign
exchange for the country’s economic growth.
However, according to the data
obtained, the development of Indonesian exports starting in 2011-2015 did not
increase the contrary. Based on the chart below, in the period 2011-2015, the
export value of Indonesia continues to decline each year of 203,496.60 million
US $ to 150,252.50 million US $ in 2015 ago. It can be concluded, from the
years 2011-2015, the decline in export value amounted to 26.16%.
Figure 1.
Development of Export Year 2011-2015
in Indonesia (million US $)
Source : Calculated based on
data from the Ministry of Commerce in 2015.
Each country has always sought to
develop export value of commodity exports superior. Export growth is very
important in improving the state revenue that affect the development of the
national economy. Since then, exports became the main focus in promoting
economic growth in line with the change of emphasis on the industrialization
strategy of import substitution to export promotion. According to BPS, komotidi
Indonesian export commodities are in the non-oil and gas sector. Whereas, for
the oil and gas sector alone, its development is still very much under the
Non-Oil and Gas sector.
Figure 2.
Comparison of Oil and Gas Export
Value of Non-Oil and Gas in Indonesia 2011-2015 (million US$)
Source : Calculated based on
data from the Ministry of Commerce in 2015
INDONESIA EXPORT DATA
Exports from Indonesia dropped by
9.75 percent from a year earlier to USD11.51 billion in May of 2016, following
a 12.5 percent decline in April and market expectations of a 7.9 percent fall.
It was the 20th straight month of fall, as sales of non-oil and gas products
dropped by 7.12 percent to USD10.55 billion and those of oil and gas dropped by
31.22 percent to USD957.9 million. Compared to the previous month, exports were
up by 0.31 percent. Oil exports rose 7.42 percent and sales of non-oil and gas
products declined sby 0.29 percent. Sales were up to the EU countries (+1.17
percent to USD1.19 billion), Japan (+5.21 percent to USD1.00 billion),
Australia (+62.03 percent to USD280.2 million) and South Korea (+1.30 percent
to USD427.6 million). Exports in Indonesia averaged 3940.93 USD Million from
1960 until 2016, reaching an all time high of 18647.83 USD Million in August of
2011 and a record low of 30 USD Million in January of 1961. Exports in
Indonesia is reported by the Statistics Indonesia.
|
Actual
|
Prvous
|
Highest
|
Lowest
|
Dates
|
Unit
|
Frqncy
|
||
|
1151000
|
1145000
|
1864783
|
30.00
|
1960 - 2016
|
USD Million
|
Monthl
|
Exports have
been an engine of economic growth in Indonesia. However, after reaching a peak
in 2012, it have been in a steady decline due to lower commodity prices and
dwindling global demand. Major exports are: oil and gas (12.4 percent of the
total exports, of those gas 6.9 percent, crude oil 4.3 percent and oil products
1.2 percent); animal and vegetable fats and oils (14 percent); and electrical
equipment and machinery (10.45 percent). Other exports include: footwear, part
of such articles (3.4 percent); garments not knitted (3 percent) and ores, slag
and ash (2.5 percent). Major export partners are: the United States (11.6
percent), China (10 percent of the total exports), Japan (9.9 percent), India
(8.8 percent) and Singapore (7 percent). This page provides the latest reported
value for - Indonesia Exports - plus previous releases, historical high and
low, short-term forecast and long-term prediction, economic calendar, survey
consensus and news. Indonesia Exports - actual data, historical chart and
calendar of releases - was last updated on June of 2016.
|
Calendar
|
GMT
|
Reference
|
Actual
|
Previous
|
Consensus
|
Forecast
|
|||||||
|
2016-04-15
|
02:00 AM
|
Mar
|
-13.5%
|
-7.18%
|
-14.04%
|
-8.3%
|
|||||||
|
2016-05-16
|
04:00 AM
|
Apr
|
-12.65%
|
-13.5%
|
-11%
|
-13.0%
|
|||||||
|
2016-06-15
|
04:00 AM
|
May
|
-9.75%
|
-12.65%
|
-7.9%
|
-7.8%
|
|||||||
|
2016-07-15
|
04:00 AM
|
Jun
|
-9.75%
|
||||||||||
|
2016-08-18
|
04:00 AM
|
Jul
|
|||||||||||
|
2016-09-15
|
04:00 AM
|
Aug
|
|||||||||||
|
Indonesia Trade
|
Last
|
Previous
|
Highest
|
Lowest
|
Unit
|
||||||||
|
375.60
|
662.30
|
4641.92
|
-2329.13
|
USD Million
|
|||||||||
|
11510.00
|
11450.00
|
18647.83
|
30.00
|
USD Million
|
|||||||||
|
11140.00
|
10780.00
|
17416.99
|
21.00
|
USD Million
|
|||||||||
|
-4670.00
|
-5114.70
|
3795.00
|
-10125.60
|
USD Million
|
|||||||||
|
-2.06
|
-3.20
|
4.80
|
-6.80
|
percent
|
|||||||||
|
310670.25
|
292578.54
|
310670.25
|
132629.00
|
USD Million
|
|||||||||
|
100.24
|
98.20
|
135.30
|
89.01
|
Index Points
|
|||||||||
|
96100.00
|
82100.00
|
92200.00
|
35400.00
|
IDR Billion
|
|||||||||
|
2301.00
|
2329.00
|
2384.00
|
1202.00
|
USD Million
|
|||||||||
|
858240.00
|
806118.00
|
915334.00
|
548821.00
|
||||||||||
|
78.07
|
78.07
|
96.45
|
73.09
|
Tonnes
|
|||||||||
|
801.00
|
800.00
|
1720.00
|
772.00
|
BBL/D/1K
|
|||||||||
|
4.76
|
4.78
|
6.55
|
3.92
|
||||||||||
|
4.00
|
8.00
|
49.00
|
1.00
|
USD Million
|
|||||||||
|
External Trade
Exports to Country Imports from Country Exports of Commodity Imports of Commodity All Trade |
Last
|
Reference
|
Previous
|
Highest
|
|
|
1330477.00 USD Million
|
Dec/14
|
1330477.00
|
1330477.00
|
||
|
149954.00 USD Million
|
Dec/14
|
149954.00
|
149954.00
|
||
|
84871.00 USD Million
|
Dec/14
|
84871.00
|
84871.00
|
||
|
30624.30 USD Million
|
Dec/14
|
29849.50
|
30624.30
|
||
|
17605.90 USD Million
|
Dec/14
|
22601.50
|
22941.00
|
||
|
16918.90 USD Million
|
Dec/14
|
16763.70
|
20508.90
|
||
|
11510.00 USD Million
|
May/16
|
11450.00
|
18647.83
|
||
|
11140.00 USD Million
|
May/16
|
10780.00
|
17416.99
|
||
|
10621.20 USD Million
|
Dec/14
|
11422.50
|
16388.80
|
||
|
9781.00 USD Million
|
Dec/14
|
10703.10
|
11438.50
|
||
|
6425.10 USD Million
|
Dec/14
|
5862.40
|
6584.90
|
||
|
3758.20 USD Million
|
Dec/14
|
4480.30
|
4692.80
|
||
|
3623.20 USD Million
|
Oct/15
|
3718.40
|
8747.40
|
||
|
2991.00 USD Million
|
Dec/14
|
2991.00
|
2991.00
|
||
|
2864.80 USD Million
|
Oct/15
|
2974.30
|
4818.40
|
||
|
2781.90 USD Million
|
Oct/15
|
2869.80
|
4002.00
|
||
|
2759.80 USD Million
|
Dec/15
|
2601.80
|
2932.70
|
||
|
1848.40 USD Million
|
Dec/14
|
2092.40
|
2465.20
|
||
|
1494.14 USD Million
|
Nov/15
|
1356.67
|
2454.27
|
||
|
1404.19 USD Million
|
Nov/15
|
1379.37
|
2004.96
|
||
|
1227.10 USD Million
|
Dec/15
|
1025.50
|
1444.70
|
||
|
1224.98 USD Million
|
Nov/15
|
1283.77
|
1536.31
|
||
|
1183.40 USD Million
|
Dec/15
|
991.60
|
1352.10
|
||
|
1121.50 USD Million
|
Oct/15
|
1206.80
|
5409.10
|
||
|
987.10 USD Million
|
Dec/15
|
942.20
|
1331405.70
|
||
|
945.71 USD Million
|
Nov/15
|
1101.36
|
1659.25
|
||
|
928.34 USD Million
|
Nov/15
|
1045.94
|
1477.38
|
||
|
836.00 USD Million
|
Dec/14
|
806.00
|
836.00
|
||
|
817.50 USD Million
|
Oct/15
|
985.20
|
1164.90
|
||
|
806.00 USD Million
|
Dec/14
|
806.00
|
806.00
|
||
|
698.30 USD Million
|
Dec/15
|
599.70
|
939.60
|
||
|
649.12 USD Million
|
Nov/15
|
626.88
|
857.60
|
||
|
640.20 USD Million
|
Dec/15
|
618.10
|
944.10
|
||
|
636.28 USD Million
|
Nov/15
|
595.57
|
1037.79
|
||
|
604.35 USD Million
|
Nov/15
|
627.66
|
946.69
|
||
|
566.90 USD Million
|
Dec/14
|
556.40
|
566.90
|
||
|
519.37 USD Million
|
Nov/15
|
594.49
|
927.88
|
||
|
512.70 USD Million
|
Dec/15
|
480.40
|
749.40
|
||
|
486.80 USD Million
|
Dec/14
|
469.50
|
542.30
|
||
|
478.50 USD Million
|
Dec/15
|
466.90
|
632.00
|
||
|
464.20 USD Million
|
Oct/15
|
535.30
|
918.30
|
||
|
452.40 USD Million
|
Dec/15
|
386.90
|
562.70
|
||
|
436.70 USD Million
|
Dec/15
|
363.60
|
585.50
|
||
|
431.25 USD Million
|
Nov/15
|
448.83
|
579.44
|
||
|
396.00 USD Million
|
Dec/14
|
365.00
|
396.00
|
||
|
386.30 USD Million
|
Oct/15
|
363.50
|
666.00
|
||
|
383.94 USD Million
|
Nov/15
|
452.69
|
540.68
|
||
|
343.20 USD Million
|
Dec/15
|
340.90
|
540.70
|
||
|
331.88 USD Million
|
Nov/15
|
200.34
|
379.36
|
||
|
319.70 USD Million
|
Oct/15
|
333.40
|
711.40
|
||
|
307.62 USD Million
|
Nov/15
|
305.04
|
405.55
|
||
|
300.80 USD Million
|
Oct/15
|
294.20
|
531.40
|
||
|
300.07 USD Million
|
Nov/15
|
277.60
|
390.79
|
||
|
297.20 USD Million
|
Oct/15
|
257.40
|
432.90
|
||
|
288.87 USD Million
|
Nov/15
|
269.00
|
611.51
|
||
|
268.60 USD Million
|
Dec/15
|
299.50
|
389.90
|
||
|
264.10 USD Million
|
Nov/15
|
288.01
|
288.01
|
||
|
261.21 USD Million
|
Nov/15
|
262.73
|
370.16
|
||
|
258.90 USD Million
|
Dec/15
|
241.10
|
356.60
|
||
|
241.50 USD Million
|
Dec/14
|
241.20
|
372.30
|
||
|
227.30 USD Million
|
Dec/15
|
205.10
|
279.90
|
||
|
226.10 USD Million
|
Oct/15
|
300.30
|
495.90
|
||
|
217.40 USD Million
|
Dec/15
|
213.60
|
438.00
|
||
|
205.50 USD Million
|
Nov/15
|
220.99
|
280.08
|
||
|
180.10 USD Million
|
Dec/15
|
210.90
|
444.90
|
||
|
177.90 USD Million
|
Dec/14
|
170.80
|
214.00
|
||
|
175.60 USD Million
|
Dec/14
|
171.60
|
175.60
|
||
|
146.42 USD Million
|
Nov/15
|
161.04
|
305.07
|
||
|
145.25 USD Million
|
Nov/15
|
85.57
|
147.06
|
||
|
143.80 USD Million
|
Dec/14
|
150.70
|
150.70
|
||
|
122.10 USD Million
|
Dec/14
|
73.20
|
122.10
|
||
|
116.59 USD Million
|
Nov/15
|
143.72
|
241.60
|
||
|
106.80 USD Million
|
Nov/15
|
128.42
|
161.10
|
||
|
103.82 USD Million
|
Nov/15
|
137.79
|
252.37
|
||
|
101.98 USD Million
|
Nov/15
|
85.82
|
181.28
|
||
|
93.80 USD Million
|
Oct/15
|
203.10
|
281.70
|
||
|
93.58 USD Million
|
Nov/15
|
93.05
|
112.93
|
||
|
90.29 USD Million
|
Nov/15
|
114.30
|
217.43
|
||
|
87.00 USD Million
|
Dec/14
|
91.00
|
98.00
|
||
|
85.00 USD Million
|
Dec/14
|
62.00
|
122.00
|
||
|
83.86 USD Million
|
Nov/15
|
85.53
|
100.70
|
||
|
83.80 USD Million
|
Oct/15
|
78.80
|
120.40
|
||
|
83.00 USD Million
|
Dec/14
|
74.00
|
107.00
|
||
|
78.47 USD Million
|
Nov/15
|
60.88
|
95.31
|
||
|
62.40 USD Million
|
Dec/14
|
110.30
|
341.00
|
||
|
61.00 USD Million
|
Dec/14
|
46.00
|
61.00
|
||
|
59.52 USD Million
|
Nov/15
|
24.50
|
59.52
|
||
|
58.07 USD Million
|
Nov/15
|
52.34
|
73.00
|
||
|
52.46 USD Million
|
Nov/15
|
53.38
|
115.39
|
||
|
51.30 USD Million
|
Dec/14
|
7.50
|
51.30
|
||
|
48.79 USD Million
|
Nov/15
|
55.13
|
69.19
|
||
|
48.00 USD Million
|
Dec/14
|
48.00
|
48.00
|
||
|
47.60 USD Million
|
Dec/14
|
78.10
|
184.10
|
||
|
44.80 USD Million
|
Oct/15
|
41.50
|
107.70
|
||
|
40.09 USD Million
|
Nov/15
|
42.09
|
57.23
|
||
|
39.42 USD Million
|
Nov/15
|
51.41
|
113.04
|
||
|
36.31 USD Million
|
Nov/15
|
42.42
|
150.79
|
||
|
34.11 USD Million
|
Nov/15
|
36.66
|
43.60
|
||
|
21.72 USD Million
|
Nov/15
|
13.65
|
27.09
|
||
|
21.48 USD Million
|
Nov/15
|
24.77
|
34.58
|
||
|
14.87 USD Million
|
Nov/15
|
12.20
|
17.94
|
||
|
12.30 USD Million
|
Dec/14
|
16.60
|
26.00
|
||
|
12.11 USD Million
|
Nov/15
|
11.19
|
38.31
|
||
|
10.00 USD Million
|
Dec/14
|
10.00
|
26.00
|
||
|
9.66 USD Million
|
Nov/15
|
9.16
|
10.05
|
||
|
9.55 USD Million
|
Nov/15
|
13.32
|
17.06
|
||
|
9.04 USD Million
|
Nov/15
|
9.38
|
30.13
|
||
|
8.70 USD Million
|
Dec/14
|
6.30
|
27.00
|
||
|
5.80 USD Million
|
Dec/14
|
5.80
|
5.80
|
||
|
5.73 USD Million
|
Nov/15
|
5.80
|
11.11
|
||
|
5.14 USD Million
|
Nov/15
|
1.68
|
19.38
|
||
|
5.00 USD Million
|
Dec/14
|
5.00
|
31.00
|
||
|
4.94 USD Million
|
Nov/15
|
14.13
|
14.13
|
||
|
4.86 USD Million
|
Nov/15
|
3.05
|
12.28
|
||
|
4.50 USD Million
|
Dec/14
|
5.80
|
23.80
|
||
|
4.45 USD Million
|
Nov/15
|
3.55
|
15.95
|
||
|
3.10 USD Million
|
Dec/14
|
3.00
|
89.00
|
||
|
2.71 USD Million
|
Nov/15
|
36.86
|
166.65
|
||
|
2.60 USD Million
|
Dec/14
|
4.30
|
11.00
|
||
|
1.84 USD Million
|
Nov/15
|
2.33
|
2.62
|
||
|
1.80 USD Million
|
Dec/14
|
5.20
|
23.00
|
||
|
1.52 USD Million
|
Nov/15
|
2.03
|
4.85
|
||
|
1.00 USD Million
|
Dec/14
|
1.00
|
1.00
|
||
|
0.84 USD Million
|
Dec/14
|
0.84
|
0.84
|
||
|
0.50 USD Million
|
Dec/14
|
0.50
|
0.50
|
CHAPTER 2
GROWTH OF
INDONESIA’S SHOE EXPORT TO PERSIST IN 2016.
While the domestic market remained sluggish,
exports of Indonesia’s footwear and shoe products show a more positive
development. The Indonesian Footwear Association (Aprisindo) estimates that the
nation’s footwear exports rose 6.8 percent (y/y) to USD $4.7 billion in 2015.
Based on the latest data from Indonesia’s Trade Ministry, Indonesian
footwear/shoe exports reached USD $3.66 billion in the January-October 2015
period, up 10 percent from exports in the same period one year earlier. Eddy
Widjanarko, Chairman of the Aprisindo, added that exports have risen both in
terms of value and volume.
Indonesian footwear exports have performed well in 2015 thanks to the
weakening rupiah rate. During 2015 the Indonesian rupiah depreciated about 10
percent against the greenback, implying that Indonesian exports become more
attractive on the global market. Moreover, local shoe manufacturers also raised
prices of their output as production costs have risen due to higher minimum
wages and more costly imports of raw materials (mainly leather and rubber) due to
the fragile rupiah.
Aprisindo Chairman Widjanarko expects Indonesia's footwear exports to
accelerate further in 2016. "A 10 percentage point growth (year-on-year)
in shoe exports should be possible provided that the rupiah remains
stable."
Adis Dimension Footwear, a West Java-based export-oriented sporting goods
company (part of Nike Inc), also stated that it expects good export growth
performance of its shoe segment, particularly sports shoes. The company expects
Indonesia's shoe export to break the USD $5 billion (per year) level within the
next five years. The company added that the recent economic stimulus packages
that have been unveiled by the Indonesian government support competitiveness of
Indonesian industries and this will also strengthen the footwear industry.
Economic Stimulus Packages of the Indonesian Government:
|
Package
|
Unveiled
|
Main Points
|
|
1st
|
9 September
|
• Boost industrial competitiveness through deregulation
• Curtail red tape • Enhance law enforcement & business certainty |
|
2nd
|
30 September
|
• Interest rate tax cuts for exporters
• Speed up investment licensing for investment in industrial estates • Relaxation import taxes on capital goods in industrial estates & aviation |
|
3rd
|
7 October
|
• Cut energy tariffs for labor-intensive industries
|
|
4th
|
15 October
|
• Fixed formula to determine increases in labor wages
• Soft micro loans for >30 small & medium, export-oriented, labor-intensive businesses |
|
5th
|
22 October
|
• Tax incentive for asset revaluation
• Scrap double taxation on real estate investment trusts • Deregulation in Islamic banking |
|
6th
|
5 November
|
• Tax incentives for investment in special economic zones
|
|
7th
|
4 December
|
• Waive income tax for workers in the nation's labor-intensive
industries
• Free leasehold certificates for street vendors operating in 34 state-owned designated areas |
|
8th
|
21 December
|
• Scrap income tax for 21 categories of airplane spare parts
• Incentives for the development of oil refineries by the private sector • One-map policy to harmonize the utilization of land |
Adis Dimension Footwear currently has a production capacity of 20 million
pairs of shoes per year. However, as exports are projected to grow, the company
plans to construct a new shoe plant in West Java. The new plant will require an
investment of about USD $55 million, financed through the company's internal
cash reserves and bank loans. The new plant is expected to have an annual
production capacity of 12 million pairs of shoes.
Overview Indonesia's Footwear Industry
Indonesia is among the world top six of largest footwear exporters and
therefore this sector is an important asset to Indonesia's manufacturing
industry (generating foreign exchange earnings and providing employment to many
people). Big global players, such as Nike Inc and several companies from China
and South Korea, have production facilities in Indonesia as the country's
labour costs are low. However, these minimum wages have been growing rapidly in
recent years, weakening appeal of investment in the shoe industry.
Another problem is that Indonesia needs to import several raw materials
(leather and rubber) for the production of shoes. Despite being a major rubber
producer Indonesia still needs to import rubber materials for the
manufacturing of shoes as the country lacks domestic processing facilities.
Indonesian Footwear/Shoe Exports 2010-2015:
|
Year
|
Shoe Export
|
YoY Growth
|
|
2015¹
|
$4.7 billion
|
+7%
|
|
2014
|
$4.4 billion
|
+13%
|
|
2013
|
$3.9 billion
|
+11%
|
|
2012
|
$3.5 billion
|
+6%
|
|
2011
|
$3.3 billion
|
+32%
|
|
2010
|
$2.5 billion
|
-
|
NEWS
Import and
export activities, as part of international trade, are exempted from the
obligation to use rupiah in all transactions, according to an official with
Bank Indonesia (BI).
Aside from
export and import activities, exemptions have also been granted for several
strategic infrastructure projects including the financing of the construction
of airports and power plants.
‘Foreign
currency can still be used for import and export transactions […] We are
flexible so as to not interfere in the economy,’ The head of BI’s payment
system policy and monitoring department, Eni Panggabean, told The Jakarta Post
on Sunday.
Eni made the
statement particularly in response to comments by Anne Patricia Sutanto,
president director of garment producer PT Pancaprima Ekabrothers, who
criticized the BI policy that previously required all business transactions
performed in Indonesian territory to be conducted in rupiah.
Anne said
the policy had especially hurt companies involved in import and export
activities because, with the mandatory use of rupiah, they had to renegotiate
their business contracts with their foreign partners.
Before the
policy was implemented, most export and import related transactions were
conducted in US dollars. ‘Now, we have to change this and, for example, we have
to tell shipping companies to draft invoices in rupiah,’ Anne said. ‘This
policy has caused confusion in the business world.’
Central bank
regulation (PBI) No. 17, which is the object of the complaint, stipulates that
when non-rupiah currencies can be used in international financial and
commercial transactions, specifies income and expenditure under the state
budget, regulates foreign currency savings and deposits in banks and
international financing transactions, as well as many other transactions
covered by the BI Law and the Investment Law.
‘Those who
already signed contracts [using foreign currencies] before July can still
proceed,’ Eni added.
Exemptions
to the rule were also made for strategic infrastructure projects, such as
airports and projects in electricity and geothermal energy, with the consent of
the central bank, Eni added.
Eni also
said BI had given some companies extra time to adjust their accounting systems
to rupiah, as backed up by article 16 of PBI No.17.
The article
stipulates that the bank can adopt a particular policy if the mandatory use of
rupiah for non-cash transactions causes problems for business people, with
certain qualifications.
‘The company’s
system and accounting can’t change quickly by changing the accounting records
from dollars to rupiah, some companies need to close their financial book
first,’ Eni said, adding that the length of time to adjust the system depended
on the company’s request to the central bank.
Eni
maintained that companies had been supportive of the policy, including in the
travel sector and the oil and gas sector.
BI has stood
firm in implementing its PBI which regulates the mandatory usage of rupiah for
all transactions onshore, with the central bank banning all transactions
conducted in foreign currencies such as the US dollar.
The policy
also stemmed from the Currency Law in 2011, she said, so it did not come out of
the blue amid the rupiah devaluation.
The measure
was taken to curb the local demand for dollars and hence stabilize the rupiah,
which has been among Asia’s most volatile currencies.
The strong
demand for greenbacks has partly contributed to the fall in the rupiah, which
has lost about 14 percent this year amid the fall in regional financial
markets. It stood at Rp 14,306 on Friday against the dollar, according to the
Jakarta Interbank Spot Dollar Rate (JISDOR), way past the previously
significant 14,000-mark.
Currency
trade consultant and expert Farial Anwar voiced the same concern, warning
against further devaluation of the rupiah if the rule was not enforced, as the
pressure on the rupiah mounted inside and outside the country.
‘There are
already too many transactions inside the country unrelated to international
transactions that use foreign currencies. Even apartment rents, mall rents, or
hotel bookings don’t use rupiah. That is not right,’ Farial said.
Analysis
The
international trading management of Indonesia must be fixed and made to the
better one and the goverment also have to be careful facing some factor that
can hamper our international trading management such as :
a.
Inflation
High inflation may cause our export commodities are less able to
compete on the world market, due to the high inflation export prices will be
more expensive. Consequently rarely willing to buy the products of our exports.
b.
Entrepreneurs in the country who are not protected by their international
trade. International Trade little effect to the domestic business, they compete
with employers in the region. Kualiatas and the quality of the entrepreneur is
very uncertain in the employer’s business
c. Their new
colonialism by the developed countries,
Such conditions create the atmosphere like
during the colonial period although differing indirectly. Developing countries
that do not have a better capacity will depend on the developed countries. As a
consequence, developing countries will easily be tottering with developed
countries.
And to
overcome the negative effects of international trade and the establishment of
ACFTA, diharakan government to quickly perform a variety of approaches to the
society by strengthening the human resources (HR) is to develop educational
evenly in each area so hopefully everyone can be Tenggara work and professional
experts and this is called progressive policies -Jakarta Post
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