INTERNATIONAL BUSINESS

WELL DONE AS TAKE HOME FINAL EXAM

ODD SEMESTER (2010/2011)

FINAL REPORT
Competitiveness and Climate Change with the Innovations behind Them
The 2nd, 3rd, 4th, and 6th Conversation of Final Exam

Compiled By

Fara Laynds Lamborghini : 0910233039

INTERNATIONAL ACCOUNTING DEPARTMENT

ECONOMIC FACULTY
BRAWIJAYA UNIVERSITY
MALANG
2011

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 Competitiveness and Climate Change with the Innovations behind Them
The 2nd, 3rd, 4th, and 6th Conversation of Final Exam

Fara Laynds Lamborghini: 090233039

International Accounting Department Economic Faculty
Brawijaya University

PREFACE
Semester final exam is a test to "check" how much knowledge gained and applied their
application during the course of a semester. Some students sometimes still think that the
semester final exam is a frightening specter, so the fact that excessive fears it defeats the ability
to think these students in completing the final exam of the semester. In fact, although the final
exam for the International Business course, the force take-home exam, but to complete the final
report of this test required an accurate analysis and seriousness in completing the final report.
The final report in the take home exam is based on an analysis of the second, third, fourth, and
sixth conversations that have been given by Prof. Eko Ganis Sukoharsono, SE, MCom-Hons,
Ph.D.
As in the second conversation that discuss about Indonesia, which is included in one of
the G20, leaders vowed to revive global trade, reject protectionism, increase trade financing, and
refrain from the imposition of new barriers to trade and investment. Learning from past
experience which shows that the proof will of is in the pudding. International Chamber of
Commerce welcomed the decision to make the G20 the main forum for international economic
cooperation. With countries representing 90 percent of global gross national product, the G20
represents a new distribution of economic power in the world today. In the third conversation, as
expressed by President Yudhoyono, Indonesia has been discussion about ready for a decrease in
greenhouse gas emissions by 26 percent by 2020 from current levels. A higher target than 41
percent will be achieved with international assistance, he insisted. So in this final report, will
answer one question that desperately needs answers: What action should the President take to
meet the target of 26 percent? For the fourth conversation, to discuss the six ASEAN countries
now that can import and export 54,457 types of products, or 99.11 percent of all traded goods,

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crossing their borders without charge, under the Common Effective Preferential Tariff for the
AFTA, in place since 1992. Elimination of tariffs by Indonesia, Brunei, Malaysia, Philippines,
Singapore, and Thailand is a step towards an integrated ASEAN economy, with the remaining
countries - Cambodia, Laos, Myanmar, and Vietnam - will join in 2015. With the elimination of
these tariffs, the ASEAN market is now wide open for us. But it all depends on how much the
target countries 'economic performance and how efficiently our products'. The last discussion is
the sixth conversation about the International Business expectations for Indonesia in 2011.
Mentioned in one of the latest news that Indonesia is ranked 44th of world economy. In 2011,
Indonesia has a good climate for business. Climate Indonesia is expected to expand by 6.3
percent in 2011 to or greater than the previous year.

DISCUSSION
I will discuss about the discussion on the second conversation. The G20 was
established in 1999, in the wake of the 1997 Asian Financial Crisis, to bring together major
advanced and emerging economies to stabilize the global financial market. Since its inception,
the G20 has held annual Finance Ministers and Central Bank Governors' Meetings and discussed
measures to promote the financial stability of the world and to achieve a sustainable economic
growth and development. To tackle the financial and economic crisis that spread across the globe
in 2008, the G20 members were called upon to further strengthen international cooperation.
Accordingly, the G20 Summits have been held in Washington in 2008, in London and Pittsburgh
in 2009, and in Toronto and Seoul in 2010. The concerted and decisive actions of the G20, with
its balanced membership of developed and developing countries helped the world deal
effectively with the financial and economic crisis, and the G20 has already delivered a number of
significant and concrete outcomes: First, the scope of financial regulation has been largely
broadened and prudential regulation and supervision have been strengthened. There was also
great progress in policy coordination thanks to the creation of the framework for a strong,
sustainable and balanced growth designed to enhance macroeconomic cooperation among the
G20 members and therefore to mitigate the impact of the crisis. Finally, global governance has
dramatically improved to better take into consideration the role and the needs of emerging of
developing countries, especially through the ambitious reforms of the governance of the IMF and
the World Bank. Building on these important progresses, the G20 has now to adapt to a new

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economic environment. It must prove that it is able to coordinate the economic policies of major
economies on an ongoing basis. 2011 will be the occasion to build on the recent successes of the
G20 and ensure an active follow-up on processes already underway. It will also be the time to
address other essential issues which are crucial to global stability such as the reform of the
international monetary system and the volatility of commodity prices. I believe indeed that
today's key economic challenges require a collective and ambitious action which the G20 is able
to impulse.
The Group of Twenty (G-20) Finance Ministers and Central Bank Governors was
established in 1999 to bring together systemically important industrialized and developing
economies to discuss key issues in the global economy. The inaugural meeting of the G-20 took
place in Berlin, on December 15-16, 1999, hosted by German and Canadian finance ministers.
The G-20 is the premier forum for our international economic development that promotes open
and constructive discussion between industrial and emerging-market countries on key issues
related to global economic stability. By contributing to the strengthening of the international
financial architecture and providing opportunities for dialogue on national policies, international
co-operation, and international financial institutions, the G-20 helps to support growth and
development across the globe. The G-20 was created as a response both to the financial crises of
the late 1990s and to a growing recognition that key emerging-market countries were not
adequately included in the core of global economic discussion and governance. Prior to the G-20
creation, similar groupings to promote dialogue and analysis had been established at the initiative
of the G-7. The G-22 met at Washington D.C. in April and October 1998. Its aim was to involve
non-G-7 countries in the resolution of global aspects of the financial crisis then affecting
emerging-market countries. Two subsequent meetings comprising a larger group of participants
(G-33) held in March and April 1999 discussed reforms of the global economy and the
international financial system. The proposals made by the G-22 and the G-33 to reduce the world
economy's susceptibility to crises showed the potential benefits of a regular international
consultative forum embracing the emerging-market countries. Such a regular dialogue with a
constant set of partners was institutionalized by the creation of the G-20 in 1999. The G-20 is
made up of the finance ministers and central bank governors of 19 countries: Argentina,
Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico,
Russia, Saudi Arabia, South Africa, Republic of Korea, Turkey, United Kingdom, and United

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States of America. The European Union, who is represented by the rotating Council presidency
and the European Central Bank, is the 20th member of the G-20. To ensure global economic
forum and institutions work together, the Managing Director of the International Monetary Fund
(IMF) and the President of the World Bank, plus the chairs of the International Monetary and
Financial Committee and Development Committee of the IMF and World Bank, also participate
in G-20 meetings on an ex-officio basis. The G-20 thus brings together important industrial and
emerging-market countries from all regions of the world. Together, member countries represent
around 90 per cent of global gross national product, 80 per cent of world trade (including EU
intra-trade) as well as two-thirds of the world's population. The G-20's economic weight and
broad membership gives it a high degree of legitimacy and influence over the management of the
global economy and financial system.
To tackle the financial and economic crisis that spread across the globe in 2008, the G20
members were called upon to further strengthen international cooperation. Accordingly, the G20
Summits have been held in Washington in 2008, in London and Pittsburgh in 2009, and in
Toronto and Seoul in 2010.
The concerted and decisive actions of the G20, with its balanced membership of developed and
developing countries helped the world deal effectively with the financial and economic crisis,
and the G20 has already delivered a number of significant and concrete outcomes:
First, the scope of financial regulation has been largely broadened, and prudential regulation and
supervision have been strengthened. There was also great progress in policy coordination thanks
to the creation of the framework for a strong, sustainable and balanced growth designed to
enhance macroeconomic cooperation among the G20 members and therefore to mitigate the
impact of the crisis. Finally, global governance has dramatically improved to better take into
consideration the role and the needs of emerging of developing countries, especially through the
ambitious reforms of the governance of the IMF and the World Bank.
Unlike international institutions such as the Organization for Economic Co-operation
and Development (OECD), IMF or World Bank, the G-20 (like the G-7) has no permanent staff
of its own. The G-20 chair rotates between members, and is selected from a different regional
grouping of countries each year. In 2011 the G-20 chair is France. The chair is part of a
revolving three-member management Troika of past, present and future chairs. The incumbent
chair establishes a temporary secretariat for the duration of its term, which coordinates the

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group's work and organizes its meetings. The role of the Troika is to ensure continuity in the G-
20's work and management across host years.

Former G-20 Chairs

 1999-2001 Canada
 2002 India
 2003 Mexico
 2004 Germany
 2005 China
 2006 Australia
 2007 South Africa
 2008 Brazil
 2009 United Kingdom
 2010 Republic of Korea

It is normal practice for the G-20 finance ministers and central bank governors to meet
once a year. The ministers' and governors' meeting is usually preceded by two deputies' meetings
and extensive technical work. This technical work takes the form of workshops, reports and case
studies on specific subjects, that aim to provide ministers and governors with contemporary
analysis and insights, to better inform their consideration of policy challenges and options.
The G-20 cooperates closely with various other major international organizations and
forum, as the potential to develop common positions on complex issues among G-20 members
can add political momentum to decision-making in other bodies. The participation of the
President of the World Bank, the Managing Director of the IMF and the chairs of the
International Monetary and Financial Committee and the Development Committee in the G-20
meetings ensures that the G-20 process is well integrated with the activities of the Britton Woods
Institutions. The G-20 also works with, and encourages, other international groups and
organizations, such as the Financial Stability Board and the Basel Committee on Banking
Supervision, in progressing international and domestic economic policy reforms. In addition,
experts from private-sector institutions and non-government organizations are invited to G-20

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meetings on an ad hoc basis in order to exploit synergies in analyzing selected topics and avoid
overlap. The country currently chair the G-20 posts details of the group's meetings and work
program on a dedicated website. Although participation in the meetings is reserved for members,
the public is informed about what was discussed and agreed immediately after the meeting of
ministers and governors has ended. After each meeting of ministers and governors, the G-20
publishes a communiqué which records the agreements reached and measures outlined. Material
on the forward work program is also made public.
In 2011, there are 20 members of the G-20. These include, at the leaders summits, the
leaders of 19 countries and of the European Union, and, at the ministerial-level meetings, the
finance ministers and central bank governors of 19 countries and of the European Union. In
addition, Spain and the Netherlands took part in the last 4 G-20 heads of state meetings despite
not being recognized members.

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I will discuss about the discussion on the third conversation. Talk about the effects of
greenhouse gas emissions is like a never-ending. Representation of the exchanges of energy are
between the source (the Sun), the Earth's surface, the Earth's atmosphere, and the ultimate sink
outer space. The ability of the atmosphere to capture and recycle energy emitted by the Earth
surface is the defining characteristic of the greenhouse effect. This mechanism is fundamentally
different from that of an actual greenhouse, which works by isolating warm air inside the
structure so that heat is not lost by convection.
The greenhouse effect was discovered by Joseph Fourier in 1824, first reliably experimented on
by John Tyndall in 1858, and first reported quantitatively by Svante Arrhenius in 1896. If an
ideal thermally conductive blackbody was the same distance from the Sun as the Earth is, it
would have a temperature of about 5.3 °C. However, since the Earth reflects about 30% (or 28%)
of the incoming sunlight, the planet's effective temperature (the temperature of a blackbody that
would emit the same amount of radiation) is about −18 or −19 °C, about 33°C below the actual
surface temperature of about 14 °C or 15 °C. The mechanism that produces this difference
between the actual surface temperature and the effective temperature is due to the atmosphere
and is known as the greenhouse effect. The Earth receives energy from the Sun in the form of
visible light. This light is absorbed at the Earth's surface, and re-radiated as thermal radiation.

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Some of this thermal radiation is absorbed by the atmosphere, and re-radiated both upwards and
downwards; that radiated downwards is absorbed by the Earth's surface. Thus the presence of the
atmosphere results in the surface receiving more radiation than it would were the atmosphere
absent; and it is thus warmer than it would otherwise be.
Global warming, a recent warming of the Earth's surface and lower atmosphere, is believed to be
the result of a strengthening of the greenhouse effect mostly due to human-produced increases in
atmospheric greenhouse gases.

By their percentage contribution to the greenhouse effect on Earth the four major gases are:
 water vapor, 36–70%
 carbon dioxide, 9–26%
 methane, 4–9%
 ozone, 3–7%

The major non-gas which contributor to the Earth's greenhouse effect, clouds, also
absorb and emit infrared radiation and thus have an effect on radiation properties of the
atmosphere. Scientists, governments, and other organizations are encouraging us to be aware of
the climate change issue and, more importantly, to contribute to the overall reduction of
greenhouse gas emissions. As individuals, we can reduce emissions from fuel-burning engines,
decrease the amount of electrical energy we use, and make more informed purchasing decisions.
Increasingly too, it seems increasingly "hot” only. In fact, some cities in Indonesia that is famous
for its "coolness", slowly but surely begin losing "the cool side.” Then came some questions like,
"Why yes weather is getting hotter?" Without realizing it, of the many questions that essentially
"to question the increasingly hot weather from time to time", the answer is: this is the effect of
greenhouse. As expressed by President Yudhoyono, Indonesia has been discussion about ready
for a decrease in greenhouse gas emissions by 26 percent by 2020 from current levels. If Mr.
President wanted a target that was stated to be achieved, at least, should prepare a plan for
appropriate and accurate. Here are 10 simple, everyday habits that everyone can adopt to reduce
greenhouse gas emissions. They’ll have a positive impact on our environment, and they might
even save you some money!

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1. Use your vehicle less often. Do you really have to drive to the convenience store, to your
friend’s house, or to the office? Try to reach your destination by walking, riding a bike,
carpooling or using public transportation. A 10% reduction in vehicle use can reduce
greenhouse gas emissions from 0.2 to 0.8 tons per year.
2. Drive more moderately. Accelerating gradually (instead of being heavy-footed) and
reducing your driving speed saves fuel and reduces emissions.
3. Keep your vehicle in good operating condition. Proper tire inflation reduces fuel
consumption and improves vehicle safety. Well-tuned engines might consume only 50%
as much fuel and exhaust only 1/30 the emissions when compared to a similar, poorly
tuned engine.
4. Lower your thermostat at home. You can save about 3% on heating costs for every
degree you reduce your thermostat setting. After a short while, you probably won’t even
notice the temperature difference.
5. Use your microwave oven more often. A typical microwave uses about one-half the
energy of a stovetop element.
6. Reduce your computer’s energy consumption. Enable your monitor’s energy saving
features when in use. Turn off your computer equipment at night and at other times when
it doesn’t have to be left on. An LCD monitor consumes only 20-50% of the energy of a
conventional CRT monitor.
7. Use less lighting. Take advantage of natural light when available instead of using
electrical lighting. Turn off lights when a room or area is not occupied.
8. Hang your laundry. If time isn’t a concern, try hanging some or all of your laundry to dry
instead of using the clothes dryer.
9. Be a smart shopper. When making a purchase, you probably have an opportunity to make
an environmentally-wise selection. You can have an impact on energy consumption and
greenhouse gas emissions when buying everything from groceries (which may come in
recycled packaging) to household appliances to automobiles. You’ll usually save money
in the long run and see other benefits, too.
10. Be open to new ideas. We are continuously being presented with new solutions and
opportunities to reduce greenhouse gas emissions. While the saying "old habits die hard"

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 is often true, adopting new ways of going about our everyday activities - even by making
small changes to the way we do things - can have a significant impact on the big picture.

I will discuss about the discussion on the fourth conversation. ASEAN member countries,
including Indonesia, was getting ready to anticipate a thousand kinds of possibilities that can
occur following full implementation of free trade agreements between ASEAN members which
was increased by one non-member countries, namely China. The various reactions, ranging from
the paranoid to the invasion of commodities from China until the government railed considered
"too forced" to join the free trade regime, lively headlines decorate the main mass media in the
homeland. No less loud, certain groups of decision convicting even join AFTA as a mistake that
is still likely to be revised again. Related to these dynamics, this article is intended to give an
idea of how about the readiness of Indonesia in the implementation of AFTA + China will be
effective from 1 January 2010 that will come. ASEAN Free Trade Area (AFTA) is a form of
agreement from ASEAN countries to establish a free trade area in order to enhance regional
economic competitiveness of ASEAN to make ASEAN as a production base and creating the
world and regional markets for 500 million inhabitants. AFTA was established at Summit
(Summit) ASEAN to IV in Singapore in 1992. Initially targeted AFTA ASEAN Free Trade Area
(AFTA) is a form of agreement from ASEAN countries to establish a free trade area in order to
enhance regional economic competitiveness of ASEAN with the ASEAN as a production base
makes the world will be achieved within 15 years (1993 to 2008), then accelerated into the year
2003, and accelerated again last into 2002. Common Effective Preferential Tariffs Scheme for
ASEAN Free Trade Area (CEPT-AFTA) is a scheme for realizing AFTA by one: a tariff
reduction to 0-5%, the elimination of quantitative restrictions and non-tariff barriers other.
Recent developments related to AFTA is the agreement to abolish all customs duties for goods
imports in 2010 Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand,
and for Cambodia, Laos, Myanmar and Vietnam in 2015.
ASEAN Free Trade Area (AFTA) is the ASEAN free trade area where there are no tariff barriers
(import duties 0-5%) and non-tariff barriers to ASEAN member countries, through the CEPT
scheme-AFTA.Tujuan AFTA is to increase the country's economic competitiveness ASEAN
countries to make ASEAN as a production base for world markets, to attract investment and
increase trade between members ASEAN.AFTA in full force for ASEAN-6 countries since

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January 1, 2002 with flexibility (with respect to certain products are still allowed to charge more
than 0 - 5%). Target is applied to the ASEAN-6 countries, while for the new state as follows:
Vietnam (2006), Laos and Myanmar (2008), and Cambodia (2010). Common Effective
Preferential Tariff Scheme (CEPT) is the stage of tariff reduction program and elimination of
barriers to non- tariffs agreed by the countries ASEAN.Semua manufactured products, including
capital goods and processed agricultural products, and products that are not included in the
definition of agricultural products. (Agricultural products are sensitive and highly sensitive
excluded from the CEPT scheme.) Quantitative restrictions abolished soon after a product enjoy
CEPT concessions, while non-tariff barriers eliminated within 5 years after a product enjoy
CEPT concessions. CEPT products are classified into four lists, namely:
Inclusion List (IL), a list containing products that meet the following criteria:
1) tariff reduction schedule
2) There are no quantitative restrictions
3) non-tariff barriers should be eliminated within 5 years.

General Exception List (GEL), a list of products excluded from the CEPT scheme by a country
because it is considered important for reasons of protection of national security, public morals,
kehidupandan health of humans, animals or plants, the value of items of art, historic or
archaeological. Provisions on General Exceptions in the CEPT agreement consistent with Article
X of the General Agreement on Tariffs and Trade (GATT). Examples: weapons and ammunition,
narcotics, etc.
Temporary Exclusions List (TEL). Namely dartar containing products dikecucalikan while to be
included in the CEPT scheme. TEL products manufactured goods must be inserted into the IL at
the latest January 1, 2002. The products in the TEL will not enjoy the CEPT tariff concessions
from other ASEAN countries anggaota. Items in TEL has nothing to do with product-prodiuk
covered under the provisions of the General Exceptions.
Sensitive List, the list of agricultural products rather than refined (Unprocessed Agricultural
Products = UAP).
1) agricultural products are not processed agricultural raw materials and processed products not
covered under tariff heading 1-24 of Harmonized System Code (HS), and similar agricultural
raw materials and processed products not covered by the post -HS tariff heading;

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2) The products have changed shape slightly compared to the original form.
Items in SL should be included into the CEPT with a term for each of the following countries:
Brunei Darussalam, Indonesia, Malaysia, Philippines and Thailand in 2003, Vietnam in 2013,
Laos and Myanmar in 2015, Cambodia in 2017.
Example: rice, sugar, meat products, wheat, garlic, clove

For case, I take: AFTA-CHINA 2010 is really causing a lot of opposition from many
people, especially their actors Small and Medium Enterprises (SMEs). This is because the Small
and Medium Enterprises is one of those most disadvantaged by the AFTA-CHINA this. This is
because the small and medium-sized businesses in Indonesia have not all ready to "fight" in this
free market world stage. Concerns of small and medium-sized businesses are very reasonable, is
caused by the free market is certainly China will flood the market products throughout Indonesia,
and that means the products of domestic products, especially small and medium enterprises will
be forced to compete with China's products are known for a very cheap price with pretty good
quality. Before free trade only Chinese products have flooded the Indonesian market, so you can
imagine what if the free market is really into force in Indonesia in 2010 is, of course, will
actually provide a threat to the perpetrators of domestic enterprises, especially small businesses
and medium. With the AFTA-CHINA would eventually lead to two different views. On the other
hand it could be a threat but the other side can serve as a challenge to the business community in
Indonesia to improve the quality and prices offered in the business world.
AFTA-CHINA imposed in the year 2010 this could be a threat if the conditions of
domestic businesses, especially small and medium businesses do not have the quality and
capability in terms of marketing their product, more details to small businesses in Indonesia are
still many who do not have the ability to product they are, how small and medium-sized
businesses in Indonesia can have a quality product and sold at cheap prices as well as products
from China. Given this free market for most of the business world, especially to those who have
a business that has quality and good management, with the free market can be a challenge for the
actors how their businesses can compete fairly with products from China so businesses will
increasingly make it into the spirit of free markets and capital to motivate them to always
improve the quality and price their products so that could be affordable by the consumer. With
the two things mentioned above it is evident that with the free market including the threat or

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challenge depending on the readiness or not kesiapanya our business in the country. Because
when the perpetrators of domestic business is strong and dna have the best quality with
affordable price-downs and free markets need not be feared. But how the fact the conditions of
SMEs in Indonesia? Facts on the field of small businesses in Indonesia are still not many are
ready with the free market is because it is in fact a small business we sometimes still have issues
that complicate maslaah nusaha their fluency. Example of capital, marketing, business
management until they are still managed with limited ability and also the lack of guidance from a
government that can improve their fluency Usha.
There are other roles that we can do to help save and help small and medium
enterprises so that SMEs do not go bankrupt and still dare to compete with the free market and
membludaknya China products, namely by creating a movement called "ME LOVE
PRODUCTION INDONESIA" with the movement This is expected to help the SMEs to remain
competitive with Chinese products. But the small and medium-sized businesses also must always
and continuously improve quality and their quality so that the people of Indonesia are not
disappointed with the products they buy from the Indonesian products but even more proud to
buy Indonesian products because of production Indonsia have a very good quality and low prices
and affordable. And to realize that there should be cooperation and coordination of many
stakeholders from business dna KEIL medium itself, the Government issued a special fund to
help Small and medium-sized players with flower detail and also guidance on an ongoing basis.
Next is the role of the community through Love Movement Production of Indonesia is the role of
a very nice and helpful, so if it is established and running well then Indonesia would have dared
to shout "WELCOME TO THE FREE MARKET."
I will discuss about the discussion on the sixth conversation. Indonesia is shouldering
high expectations of playing a greater role in ASEAN and beyond as it officially became the new
chair of ASEAN at the beginning of this year. Activists and experts have underscored a number
of targets Indonesia should meet, including on human rights, migrant workers and security
issues, while expressing concern that Indonesia’s government’s own targets may be “too
ambitious” to meet. The government has announced its logo, ASEAN Community in a Global
Community of Nations, and said that it will also speed up the pace of development toward the
establishment of an ASEAN community by 2015. Human rights NGO Imparsial’s program
manager, Al Araf, said Tuesday that the need to empower the ASEAN Intergovernmental

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Commission on Human Rights’ (AICHR) authorities was among the human rights issues
Indonesia needed to address. “It would be more appreciated if Indonesia could push for the
establishment of a national commission on human rights in countries that don’t have one yet,” he
told The Jakarta Post. Indonesia, Malaysia, the Philippines and Thailand are the only countries in
the 10-member group that already have such commissions. Araf said Indonesia needed to push
for reconciliation in the restive country of Myanmar, and improve the definition of the ASEAN
political security community by collecting input from each member. “But the next question is …
will ASEAN’s non-interference principles be further discussed later? This is because these
principles will definitely hamper efforts to promote human rights related to economic, social and
cultural issues,” he said. Echoing Araf, a senior researcher at the Indonesian Institute of Sciences
Center for Political Studies, C.P.F. Luhulima, said that designing and necessitating ASEAN’s
economic scorecard had not been greatly hampered by the classical Westphalian principles of
sovereignty and non-interference because of the very nature of the economics to achieve a single
market and production base, while on the other hand those principles hampered attempts to
designate and necessitate a political and security scorecard. Migrant worker NGO MigrantCARE
executive director Anis Hidayah said Indonesia must prioritize finishing the negotiations on the
draft of the ASEAN Framework Instrument on the Protection and Promotion of the Rights of
Migrant Workers. “ASEAN must complete immediately the draft of the framework because the
deadlock has gone on for quite a long time … at least make it legally binding,” Anis told the
Post. The deadlock, she said, was mainly attributable to Malaysia, which opposed both the
legally binding concept of the framework and standards of protection of undocumented migrant
workers on a human rights basis. The negotiations have stalled since a meeting in Kuala Lumpur
in December in 2009 as the draft proposed by Indonesia and the Philippines — the two largest
migrant worker providers in the region — is contested by the one proposed by the two biggest
worker-receiving countries, Malaysia and Singapore, despite the fact that the first draft had
already taken into consideration submissions from the opposing countries. National Commission
on Child Protection chairman Aris Merdeka Sirait said Indonesia needed to further promote child
protection from violence despite its leading role in ASEAN’s already existing efforts in child
protection. “On top of that, Indonesia should also take a stance in domestic affairs because
sometimes it is the state itself that is committing ‘violence’ against Indonesian children,” he told
the Post. He said many children from poor families did not have access to proper healthcare and

15
education. Centre for Strategic and International Studies expert Evan Laksmana and Islamic
State University international relations expert Evan Mutiara Pertiwi said ASEAN’s ambitious
2015 targets for the ASEAN community were unlikely to be met because of the diverse
backgrounds of each country and the antagonistic jargons the countries exchanged. “What we
have done all these years is to organize conferences and generate ideas and stop just right there.
We need to stop that,” Evan told the Post. Mutiara said Indonesia needed to empower civil
societies to bridge differences and to help form an ASEAN community. “In Indonesia, the old
jargon of ganyang [crush] Malaysia still exists, while at the same time Malaysians still think
Indonesians are merely troublesome neighbors,” she said. “This can be overcome through
cooperation between community-based organizations [from respective countries].” University of
Indonesia international relations expert Makmur Keliat said Indonesia needed to empower the
ASEAN secretariat through its leadership.
Chamber of Commerce and Industry (Kadin) of Indonesia, Indonesia forecasts economic growth
in 2011 could reach 6.3 to 7 percent supported by infrastructure development in central and
local. Chairman of the Chamber of Commerce President Bambang Suryo Sulisto stated at the
press at the office of Kadin Indonesia, Jakarta, Thursday (23/12), economic growth in 2010 quite
well and predicted in 2011 will reach 6.3 to 6.5 percent, and even could reach 7 percent. He said
the growth target can be achieved if it can focus on infrastructure development is not only
concentrated in Java. As one developing country in Asia, Indonesia could lead the way the world
economic recovery, but the problem is still in the real sector because private investors are
currently invested in the infrastructure sector. To that end, the government requested could
increase the deficit even higher level so that capital funds can be used to trigger the movement of
the real sector. Governments were also urged to encourage banks to be able to invest funds in the
real sector, especially banking to finance infrastructure projects that are guaranteed by the
government. The development is focused on manufacturing, not the raw materials exporting
countries, since Indonesia is a country rich in natural resources and energy. Not only that, the
government also urged to improve the policies of fiscal incentives, monetary, macro in Indonesia
as a whole in the areas of investment, trade, and banking. Bank Indonesia predicts economic
growth in Indonesia in 2011 in the range of 6.3 to 6.5 percent, with 5 percent plus the inflation
rate minus 1 percent. Deputy Governor of Bank Indonesia, Hartadi A. Sarwono in the seminar
"Economic Outlook 2011" said, Wednesday (15/12), Bank Indonesia estimates that Indonesia's

16
economy in 2011 will grow about 6.3 to 6.5 per cent higher than the growth in the year 2010.
Meanwhile, economic growth in the fourth quarter of 2010 will reach 6.1 percent and the third
quarter reached 5.8 percent due to slow economic growth. Government, to achieve growth in
2011, it should be able to slow the rapid flow of capital into the country and abroad. The factors
cause the slow growth of the slow absorption of government budgets that are not realized to the
maximum, while exports are still supported by natural resources and still have a competitive
edge even though the exchange rate tends to strengthen. Indonesia's economic growth will be
driven by a stable macro economic conditions in this year, so they can promote positive
economic both exports and imports that contribute to the GDP.

CONCLUSION
The conclusion of this final report made in order to know and understand more clearly
the relationship between competitiveness and climate change. Not forgetting also that the
innovation would "walk to follow" in tow. So, be illustrated with clear, which Indonesia cannot
be dismissed, or in other words, Indonesia should be considered in the ranks of other countries in
the world. Indonesia is ready to "join" the international business arena in all aspects and fields.

REFERENCE
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