Please read the following situation below. Then, write an essay consisting of 3 paragraph.

Ela
borate your own opinion with the references related to the situation given.

Export and import are two things that are interrelated. Please explain your thoughts on the ex
port and import policy in Indonesia. You can also add the examples to support your ideas.

Answers

Export and import are two things that are interrelated in the global economy. They affect the
trade balance, the production, and the consumption of goods and services in a country.
Indonesia, as a developing country with a large population and abundant natural resources,
has a dynamic and complex trade policy that aims to achieve various objectives, such as
economic growth, industrial development, social welfare, and environmental protection.

One of the main features of Indonesia's trade policy is the use of tariffs and non-tariff barriers
to regulate the inflow and outflow of goods. According to OOSGA, Indonesia has an average
applied tariff rate of 7.8% in 2022, which is higher than the average of 5.8% among ASEAN
countries. Indonesia also imposes export taxes on certain commodities, such as palm oil, coal,
and minerals, to encourage domestic value addition and protect the environment. Moreover,
Indonesia applies various non-tariff measures, such as import licensing, quotas, standards,
and technical regulations, to protect local industries, consumers, and public health.

However, Indonesia's trade policy also faces some challenges and criticisms from its trading
partners and international organizations. For instance, in 2020, the WTO ruled in favor of the
EU in a case involving Indonesia's restrictions on nickel ore exports, which were deemed to
violate the WTO rules on export prohibitions. Indonesia appealed the decision, arguing that
the restrictions were necessary to develop its downstream industries and reduce its
dependence on raw materials exports. Another example is the trade dispute between
Indonesia and the EU over the EU regulation that aimed to phase out certain palm-oil-based
fuels between 2023 and 2030 due to environmental concerns. Indonesia filed a lawsuit
against the EU, claiming that the regulation was discriminatory and violated the principle of
fair trade.

In conclusion, Indonesia's trade policy reflects its efforts to balance its interests and
obligations in the global market. While Indonesia has benefited from its participation in
various regional and bilateral trade agreements, it also has to deal with the challenges and
pressures from its trading partners and international institutions. Therefore, Indonesia needs
to adopt a trade policy that is consistent, transparent, and responsive to the changing needs
and demands of its economy and society.

Sources :

https://oosga.com/briefings/idn-trade-policies/

https://exim.kemendag.go.id/