Muhamad Alendio Rivaldo Gunawan

Bahasa Inggris Niaga 29

Indonesia's decision to sign a free market trade agreement is very beneficial

for the Indonesian economy because the free market is a system of economic
exchange in which taxes, recognize quality, quotas, tariffs and other forms of
centralized economic intervention by the government are minimal or even non-
existent. So it can be concluded that the free market is trade that is not regulated
by a coercive authority such as the government. In a free market, taxes and
duties on goods entering or leaving a country are usually abolished.

The free market can open up economic opportunities by expanding the

market. Products that were originally produced to be sold domestically, can be
sold abroad easily. The absence of taxes makes the market wider because it is
not limited by expensive inter-country taxes. The opening of the market allows
domestic producers to export goods in large quantities at low export costs. This
makes the country have superior export commodities that can boost the
economy. Improving the economy The implementation of a free market aims to
increase state revenues as well as the economy of its population. The broad
market provides greater product demand for domestic producers. The more
market demand, the greater the economic increase that occurs. In addition, the
opening of a broad market invites foreign investors to set up businesses in the
country, opening new businesses and growing larger businesses can provide jobs.
This can reduce unemployment and increase people's per capita income.
Increasing free market technology allows more advanced technology from
abroad to enter easily into the country. Technology upgrades can be done easily
and evenly. Besides that, the tight competition in the free market also demands
an increase in a country's human resources.

Fulfilling domestic needs free market helps the government to meet

domestic needs. Not all goods can be produced domestically. Some goods must
be imported to be able to meet the needs. The absence of import costs and tight
competition due to the free market allows the government to meet domestic
needs at lower prices. The function of the free market is to increase the
economic activity of an area and give people the freedom to make transactions
without coercion from the government

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