Monday, April 7, 2014
Indonesia’s Performance in International Trade
Maybe Indonesia include in ‘developing country’, Indonesia has a great pilar to sustains its economy in trading in the global economy. After the global finance crisis, Indonesia had woken up with trade reforms and avoid protectionism in efforts. The cooperations that Indonesia made was also a way to created welfare in its country, unexception to deter the poverty as we seen the decrased of poverty between 1999 and 2011, fell from 23.4 % to 12.5% as the World Bank reported. In this case, Indonesia has proved to the world that Indonesia is strong in economy. Stability rate of growing ecomomy in Indonesia also prove Indonesia as good country to make a deal in cooperations.
Because of Indonesia joined in international organizations, trade action between countries increase not just in Asia but also worldwide. But mostly Indonesia’s export partners are come from Asia like Japan, India, South Korea, China, and Taiwan. With great resources in our country, Indonesia become one of great fuels exporter. It sent to Asia and United States. Not just fuels, food production and textiles also has a big number in exporting. Indonesia potentially to explores more in trading.
Even Indonesia has a strong economy and stable in recent years, doesn’t mean that Indonesia already performed good in international trade. There are some inefficiencies laid on its country. A good way to increase national economy is to make export higher than import. Although Indonesia has good way to cooperate in trade as the resources of its land, a problem come from the expensive costs of transporting high quality goods. It means Indonesia less competitive in efforts to make trade and the country should more concerns about integrating its ability to compete against ‘low-cost country’ like China. In other way, the problem laid on its country that couldn’t turned the raw materials to be useful goods. It makes sure that Indonesia as semi periphery country that sell the raw materials and buy goods from its raw materials but from another country. So, this is ironic because of the exports gain lower in income than the highly imports as output.
We can conclude from this case that Indonesia’s performance in economy on its country is going well, but beyond that, Indonesia still weak in trading between countries especially the export and import gains. Even the trade itself become a way to create welfare, but it also a challenge to Indonesia. If Indonesia could get benefit more in trade, I think Indonesia could create welfare higher than now.