Nobody downloaded yet

Economic liberalization in Indonesia - Essay Example

Comments (0) Cite this document
Due to the regression in global economy that affected mostly Asian countries, compounded by the Bali incident in October 2002, Indonesia was forced to accelerate the process of liberalization to pave the way for the country's economic recovery, adapting and implementing trade policies in accordance to the general guidelines of global organizations such as APEC, GATT/WTO and the ASEAN Free Trade Agreement (AFTA)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
Economic liberalization in Indonesia
Read TextPreview

Extract of sample "Economic liberalization in Indonesia"

Download file to see previous pages Custom clearance procedures and computerized documentation requirements have facilitated imports and exports although registration of importers has remained a major requirement. The Customs Directorate of the Ministry of Finance has also implemented a post-entry audit system, which relies primarily on verification and auditing rather than inspection to monitor compliance. A paper less electronic data interchange system that links importers, banks, and customs was also introduced and is slowly being adopted (Trade Regulations and Standards). Import tariff has also been considerably reduced and it now ranges from 5% to 30% with a major exception applied to all imported distilled spirits which has a 170% duty applied to it. A 10%VAT is applied to import goods, and luxury goods are subjected to a luxury tax ranging from 20% to 35%. Several free foreign trade zones have been opened which makes it more convenient for importers and exporters to do trading business. Prohibited imports are explicitly stated in their policies, emphasizing the non-acceptance of labels in Chinese languages even Indonesian dialects. As for administrative fees applied to import goods, additional fee is required for licensing, storages and warehouses, while anti-dumping, countervailing and excise duties are collected if applicable. An import license approved by the Minister of Industry and Trade is a must before any product importation is allowed. The main documents required at the import level are Commercial Invoice, Certificate of Origin and the Bill of Lading. They have shipping restrictions wherein all import and export products must be carried out on Indonesian vessels. The local currency is rupiah but the American Dollar is most recommended for currency exchange control. Indonesia also supports the agreement on subsidies and countervailing measures. According to the Central Bureau of Statistics in Jakarta, Indonesia, promising areas for investment/joint ventures/services include oil and gas, manpower and engineering consultancy services for the petroleum industry, mining, plantation products, IT education and services, ports and railways, telecommunications, pharmaceuticals and education (both School and University).
The above mentioned trading policies are encouraging signs that the Indonesian government is truly supporting its trading business as it is beneficial to their own economic growth. However, there are many factors to be put into consideration such as too much leeway given too soon may give justified cause to the growing opposition against liberal trade among the locals which could cause instability and unpredictability, however minimal, to future transactions. Indonesia also needs to work on a lot of its policies to make it a haven for trading business. Bureaucratic red tape still exists, as is common to many countries, and this could cause hassles in the application of import licensing. It is apparent that they are striving for transparency which is crucial in a business relationship but this, too, needs to be worked at. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Economic liberalization in Indonesia Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Economic liberalization in Indonesia Essay Example | Topics and Well Written Essays - 750 words. Retrieved from
(Economic Liberalization in Indonesia Essay Example | Topics and Well Written Essays - 750 Words)
Economic Liberalization in Indonesia Essay Example | Topics and Well Written Essays - 750 Words.
“Economic Liberalization in Indonesia Essay Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic liberalization in Indonesia


...expectancy for men is 67 years and the life expectancy for women is 72 years (U.S. Department of State).       Although not an Islamic state, more than 85 percent of Indonesia profess the Muslim faith. Islam has established deep roots in Indonesia since the 5th century in which Indian traders transferred their beliefs to the Indonesian Natives. The mixture of traditional religion with Islam produced a syncretistic version of Islam such that Indonesian Muslims retain certain doctrines of animism. Although there were a few attempts to implement shariah law within the national constitution of Indonesia, Indonesia remains a democratic, liberal and secular...
8 Pages(2000 words)Research Paper

Deforestation in Indonesia

.... Conclusion Historically, deforestation in Indonesia is a by-product of a corrupt political and economic system. A profit-oriented government would likely regard the natural resources only as sources of raking superfluous income and would use all its institutions to exploit and amass everything that the environment could offer. When the policies of the government towards the forest sector are to favor forest-based industrialization, although it might seem helpful in terms of creating jobs, the economic and social cost, however, is much heavier brunt to shoulder (Osgood, 1994). Driven by greed, deforestation results not only into violence and environmental destruction, but disintegration...
9 Pages(2250 words)Research Paper

Service Market Liberalization

...Effect of Trade of Services Liberalization Central and Eastern European Countries Research Proposal Submitted in part fulfillment of the degree of MBA in International Business School of Business, University of Date of Submission May 2007 Table of Contents 1. Introduction 3 2. Research Problem 4 2.1 Research Problem Description 4 2.2 Significance and Contribution of the Research Problem 4 2.2 Delimitation and Assumptions of the Problem 4 2.3 Delimitation and Assumptions of the Problem 5 2.4 Research Objective 5 2.5 Research Questions 5 2.6 Chapter Outline 6 2.7 Research Validity 7 3. Research Data and Methodology 7 3.1 Research...
4 Pages(1000 words)Research Proposal

Economic Liberalization

...India & Economic liberalization By the end of 20th century, the world had realized that the next century is going to be an Asian century on economicground. The reason behind this view was neither Japan nor the South East Asian tigers comprising ASEAN; it's the world's two most populated nations namely China and India. Many economists called this advent of the two nations as the arrival of Chindia. The China has now become the factory of the world while India is a service sector giant while leading in the sectors like software development and BPO industry (Perkovich, 2003). Though both have now become a very successful case of FDI channeled development model but the structure of economy of these two...
8 Pages(2000 words)Essay

Liberalization and Iraq

...Liberalization and Iraq You're 15 May 2006 Introduction A historical perspective defines that the country of Iraq is markedly different from the post WWII era in comparison to how the people and body of the country is today. The politics have changed drastically and apparently the whole country is in a state of transformation. For the first time in political history since post WWII, Iraq has become free from dictatorship and has now become a country with the right to vote, freedom of expression, freedom of speech, and a myriad of other societal and political factors that are now being developed within this Middle Eastern land. This is a far cry from what previous eras had defined for the country. In present day the...
6 Pages(1500 words)Essay

Indonesia contraception, which in turn is due to economic development, an increase in the education rate, and greater work force participation for women. (Shafiqul-Islam et. al 1995) Adult male and female literacy rates are at 93.4% and 85.5% respectively (WHO) The maternal mortality ratio, the infant mortality rate, and the under 5 mortality rate are all declining, due to several factors including increased immunization coverage, economic growth (particularly in rural areas), improvement in health facilities, and greater community awareness and participation. Constraints to reduction in mortality include increasing urbanization and poverty in remote island locations. (WHO) Ethnicity of...
4 Pages(1000 words)Essay


... of the of the of the Indonesia History and Politics Introduction The South East Asian countryof Indonesia is well known around the world for its beautiful landscapes and moderate climate. The land is composed of seventeen thousand islands that stretch along the equator for about five thousand miles (Geographia, 2008). These islands are the ideal resort of tourists from around the globe. Besides the breathtaking Geography of the country its rich cultural heritage is one of the foremost things without the mentioning of which any discussion about Indonesia would be incomplete. History BUDDISM AND HINDUISM The islands of Indonesia have been said to have influenced by the diversified nature of religion and culture that was practiced... by the...
3 Pages(750 words)Essay

Economic growth in indonesia

...Running head: ECONOMIC GROWTH IN INDONESIA Economic Growth in Indonesia Indonesia passed a long way through colonization to independence and sustained economic growth. As of today, Indonesia is at the forefront of economic growth and achievements in the Asian world. This paper provides a brief insight into the background and current state of economy in Indonesia. A brief background of the country is provided. Macroeconomic indicators and market development changes are discussed. The paper includes a brief analysis of future economic trends in Indonesia....
8 Pages(2000 words)Essay

Political Liberalization in Burma

...Political Liberalization in Burma Background Burma is a country in East Asia where the military has been entrenched in dictatorship and authoritarian power with the political, economic and social situation having been depressed over years. The other country in East Asia that is still struggling with regime change and political instability is North Korea. During the disintegration of the Soviet Union and the East-west divide, there were positive developments in Asia with a number of countries dominated by the military regimes achieving political transition to democracies and saw economic growth and development of free markets (Alchin 5). Burma, like many African countries, was ruled by...
7 Pages(1750 words)Essay


...Assignment 6: 10 Major Indicators of Economic Environment in Indonesia In Indonesia, the economic environment is characterized by several indicators. Some of the ten indicators of economic environment in Indonesia are discussed below. The current GDP relevant to purchasing power parity as recorded in 2014 is at $2.554 trillion. This is slightly higher than that of the year 2013 that was at $2.429. The official exchange rate as recorded in the year 2014 stands at $856.1 billion (Central Intelligence Agency, 2015). The per capita income is $10,200 as estimated in the year 2014. The real growth rate experienced in Indonesia...
9 Pages(2250 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Economic liberalization in Indonesia for FREE!

Contact Us