Friday, June 17, 2016

Makalah International Trade 3



MAKALAH INTERNATIONAL TRADE
MAKER ( MELVIN JHONREY ) (27215779)
Group  9:
-Kevin Henanta (23215698)
-Melvin JR (27215779)
-Ria Dami Ulfa (25215873)
The Level of Competitiveness
Indonesia’s competitiveness ranking improved significantly in the global arena. In 2010, Indonesia’s competitiveness ranks 44th out of 144 countries a year earlier in 2009 in the ranking of 54. Of course, this is an achievement that was encouraging for the nation of Indonesia. However, Indonesia still must not fail in the face of global market increasingly competitive.
As the people of Indonesia, surely proud and happy with the success of the Government of Indonesia in improving its competitiveness in the global arena. In The Global Competitiveness Report 2010-2011 that was launched by the World Economic Forum (WEF) as the kick off for the implementation of WEF Summer Davos in Tianjin, China in September 2010 revealed that Indonesia’s competitiveness is ranked 44 of 144 countries from 54 in the previous ranking 2009. the increase Indonesia’s competitiveness in the global arena, it must be recognized is the role of the Ministry of Commerce (Trade) RI led by Mari ElkaPangestu, the daughter of a famous economist J. Panglaykim. Trade Minister Mari ElkaPangestu which is the economic Doctoral dropout University of California USA This is quite unreliable, especially in boosting the performance of national and international trade.
She said that there are several factors that make Indonesia an increase ratings. The increase is mainly due to rank Indonesia’s macroeconomic conditions are healthy and improvements in education indicators. The level of education in Indonesia is getting better as measured by the Global Competitiveness Index 2009-2010. “Indonesia’s macroeconomic condition is getting better. business climate in Indonesia has shown improvement, ranging from macroeconomic stability, political, and economic growth is already showing positive results, “said Trade Minister Mari ElkaPangestu.
We will expand markets and strengthen trade representatives abroad and increase Indonesia imaging products at home and abroad. For example sprain program Products I Love Indonesia (ACI). The success of the increase Indonesia’s competitiveness was mainly boosted by the significant increase in the ranking of some pillars of the 12 pillars of competitiveness, namely Institutions, Infrastructure, Macroeconomic Environment, Health and Primary Education, Higher Education and Training, Goods Market Efficiency, Labour Market Efficiency, Financial Market Development , Technological Readiness, Market Size, Business Sophistication, and Innovation. WEF as a forum for the reference of businessmen abroad see the performance of the Government of Indonesia has improved in some areas, such as protection of intellectual property rights up the rankings from 67 to 58, the level of national savings of 40 to 16, and the policy effectiveness of anti-monopoly from 35 to 30, Indonesia was deemed better in terms of expansion and the impact of taxation, which is up from rank 22 to 17. Then the business sophistication pillar also increased, namely local supplier quantity of 50 to 43, the value chain breadth of 35 to 26, control of international distribution from 39 to 33, and the production process sophistication from 60 to 52.
In the WEF assessment, ranking the condition of infrastructure in Indonesia has decreased, although not significantly. The previous year ranked Indonesia’s infrastructure is in poisisi 53, but this year being ranked ranked 55. With the decline in Indonesia’s infrastructure, the government through the ranks of relevant ministries, including the Ministry of Trade is committed to continue to work on improving the nation’s competitiveness through technological content and improvement of infrastructure. To that end, the government will continue to invite investors to participate in Public Private Partnership (PPP / PPP) and constructing facilities and infrastructure technology. “The investment climate in Indonesia is very conducive, the exchange rate is stable, and is supported by easy access to capital,” said Minister of Trade. In addition, in fiscal policy, the government also continues to provide incentives in order to encourage investors to invest in Indonesia. The government has actively provide incentives in the form of tax paid by the government, and the “ tax allowance` holiday` tax. And continue to organize the intensification and extension efforts to produce a good education. “With this policy, the government is expected to be able to fix the infrastructure, including roads, seaports and airports to become more competitive ,. With the improvement in infrastructure, the competitiveness of Indonesia will be better “said Minister of Trade. The minister also justified the statement by Coordinating Minister HattaRajasa. Minister for Economic Affairs said that Indonesia’s competitiveness on a global level can be further enhanced if infrastructure facilities can be quickly addressed. “Ranked 44’s, could still be better if our infrastructure is quickly addressed and it takes hard work,” said Coordinating Minister for the Economy, HattaRajasa. In addition to concentrating on the improvement of infrastructure, the Ministry of Trade also continues to encourage domestic products to compete in the local and export markets. “We will expand markets and strengthen trade representatives abroad and increase Indonesia imaging products at home and abroad. For example sprain program Products I Love Indonesia (ACI), “said Trade Minister Mari ElkaPangestu. Because She also hoped the businesses to utilize existing facilities in trade cooperation agreed upon Indonesia with trading partners. Today, Indonesia’s competitiveness at a global level improved and should be improved. The Ministry of Trade will continue this institutional reform, including accelerating infrastructure development. Thus the competitiveness of the Indonesian economy improves, will be able to increase the overall level of prosperity, “said Minister of Trade Mari ElkaPangestu.
Increasing the competitiveness of Indonesia at the world level is very encouraging. However, a positive assessment of the competitiveness of Indonesia World Economic Forum (WEF) are not to make the Indonesian government to be careless. Perhaps, Indonesia’s competitiveness ranking ditataran world today ahead of a number of countries, such as Portugal, which is ranked 46th, Italy 48th, India (51), South Africa (54), Brazil (58), Turkey (61), Russia (63), Mexico (66th), Egypt (81), Greece (83), and Argentina (87). Similarly, at the level of ASEAN, Indonesia’s competitiveness ranking is better than Vietnam (59), the Philippines (85), and Cambodia (109). However, so important notes that Indonesia’s competitiveness is still below Singapore, which is ranked third, Malaysia ranked 26th, ranking 28th Brunei, and Thailand ranked 38th “We still may not be negligent even though we increased competitiveness. The increase in the competitiveness index is just as one
Parameter numbers that could change. We must be more active and work hard, so the results are also better again, “trade minister. With the increase in the competitiveness of this should be a challenge for the Indonesian nation in general, and the Ministry of Trade in particular, in the continuing reform of the bureaucracy to support a conducive investment climate, eliminating factors that cause high economic costs, and encourage investors to invest in the country.
REFERENCES :

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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