Trade and Business in Indonesia, Jakarta

The purposes of the subject “Foreign Trade and Business in the Republic of Indonesia” are the following:

1. To analyse the Indonesian Economy and Foreign Trade (Import, Export, FDI)
2. To know the business opportunities in the Republic of Indonesia
3. To explore the Indonesian trade relations with the country of the student
4. To know the Indonesian Free Trade Agreements (FTA)
5. To examine the profile of Indonesian businesspeople and companies
6. To develop a business plan for the Indonesian Market

1. Access to the Nanning-Singapore Economic Corridor
   1. Pan-Beibu Gulf Economic Zone
2. Access to the East-West Economic Corridor (Myanmar-Thailand-Laos-Vietnam)

Indonesian Market Access and Trade Agreements

1. Association of Southeast Asian Nations (ASEAN)
   1. ASEAN Free-Trade Area (AFTA)
   2. East ASEAN Growth Area
   3. Free Trade Agreements (ASEAN member): Australia-New Zealand, Canada, the People's Republic of China, India, Japan, Korea, Russia, the United States, European Union, and Pakistan
   4. European Union-Indonesia Partnership and Cooperation Agreement
   5. Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)
2. Asia-Pacific Economic Cooperation (APEC)
3. India-Indonesia Economic Cooperation Agreement
4. Regional Comprehensive Economic Association (RCEP)
5. Islamic Trade Preferential System (OIC)
6. Indian-Ocean Rim Association (IORA)
7. Indonesia-Australia Comprehensive Economic Partnership Agreement
8. Chile-Indonesia Free Trade Agreement (FTA)
9. Japan-Indonesia Free Trade Agreement (FTA
10. Indonesia-Pakistan Free Trade Agreement (FTA)
11. Global System of Trade Preferences among Developing Countries (GSTP)
12. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - Candidate Country

Trade Facilitation Programs

1. World Trade Organisation (WTO)
   1. WTO General Agreement on Trade in Services (GATS)
   2. WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
   3. WTO Agreement on Technical Barriers to Trade (TBT)
   4. WTO Agreement on Preshipment Inspection (PSI)
   5. WTO Agreement on Safeguards (SG)
   6. WTO Trade Facilitation Agreement (TFA)
2. TIR Convention (Road Transport, IRU)
3. World Customs Organisation (WCO)
   1. Revised Kyoto Convention (RKC)
4. International Bureau of Containers and Intermodal Transport (BIC)
5. International Civil Aviation Organisation (ICAO, Chicago Convention)
6. International Maritime Organisation (IMO)
   1. Customs Convention on Containers (CCC, UN)
   2. Convention Relating to Temporary Admission (Istanbul Convention) - not a member

Islamic Organisations

1. Organisation of Islamic Cooperation (OIC)
   1. Standing Committee for Economic and Commercial Cooperation of the Organisation of Islamic Cooperation (COMCEC)
   2. Islamic Chamber of Commerce and Industry (ICCI)
   3. Islamic Centre for Development of Trade (ICDT)
   4. Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC)
2. Islamic Development Bank (IsDB)
3. Asia-Middle East Dialogue (AMED)
4. Arab Development Funds
5. OPEC Fund for International Development (OFID)

Asian Trade and Economic Organisations

1. Economic and Social Commission for Asia and the Pacific (ESCAP)
2. Asian Development Bank (ADB)
3. Boao Forum for Asia
4. Asia Cooperation Dialogue (ACD)
5. Forum for East Asia-Latin America Cooperation (FEALAC)
6. Colombo Plan
7. Africa-Asia Strategic Partnership

Global Organisations

1. United Nations (UN)
   1. Conference on Trade and Development (UNCTAD)
   2. International Trade Centre (INTRACEN)
   3. Commission on International Trade Law (UNCITRAL)
   4. World Intellectual Property Organisation (WIPO)
2. World Bank (WB)
3. World Trade Organisation (WTO)
4. International Monetary Fund (IMF)
5. Pacific Economic Cooperation Council (PEEC)
6. Organisation for Economic Cooperation and Development (OECD) (Key Partner)

The Republic of Indonesia:

1. The Republic of Indonesia is the biggest archipelago nation in the World, comprising 17,508 islands stretching along 5,120 kilometres from east to west, and 1,760 kilometres from north to south
2. Total population of Indonesia: 255 million people
3. The main Indonesian ethnic group are Javanese (42% of the Indonesian population)
4. Indonesian Diaspora: 8 million of Indonesians
5. Indonesian Capital: Jakarta (10 million people)
6. 30 million people live on the island of Java, the most populous island of the World
7. Indonesian land borders: Papua New Guinea, East Timor, and Malaysia
8. Neighbouring countries: Singapore, the Philippines, Australia, and the Indian territory of Andaman and Nicobar Islands
9. Bahasa Indonesia (Malay) is the correct term for Indonesian language (Official language)
   1. Other Indonesian Languages are Javanese (84% of the Indonesian population) and Sundanese (34%)
   2. More than 700 regional languages
10. Type of Government of Indonesia: Unitary Presidential constitutional Republic
11. Area of Indonesia: 1,904,569 square kilometres
12. Indonesian independence: 1949 (The Netherlands)

Main religion in Indonesia: Sunni Islam (209 million, 87% of the Indonesian population).

1. Fiqh (Islamic Jurisprudence): Shafi
2. The Indonesian Constitution implements freedom of religion
3. Other religions in Indonesia:
   1. Hinduism (3 million)
   2. Christians (20 million)
   3. Buddhism
   4. Confucianism

Indonesia is a member of the Islamic Civilisation.

Indonesian Economy:

1. Indonesia is rich in natural resources
2. In the agricultural sector, Indonesia has become self-sufficient in rice and does not need to import this staple food as it had for years
3. 90% of the Indonesian population works in agriculture
4. The fluctuations in the global prices of traditional export commodities have led to a change in the recent years in the Indonesian economy structure
5. Indonesia produces various types of cars, lorries, buses, and motorcycles under Licensing from foreign producer.
6. Indonesia also produces electronic equipment and electrical appliances
7. The Indonesian Aviation industry has been growing, and new production lines are coming on-stream as well its Universal Maintenance Centre for Overhaul of aircraft engines. The aircraft produced are for national use as well as for export
8. The Indonesian industrial estates are available in all provinces of Indonesia. The large-scale industrial estates are found in Jakarta, West Java (Bekasi, Karawang, Purwakarta), Banten (Tangierang, Serang), Central Java (Semarang, Cilacap), Yogyakarta (Piyungan), East Java (Surabaya, Gresik, Sidoarjo, Pasuruan, Probolinggo), North Sumatera (Medan), West Sumatera (Padang), Lampung, Riau (Batam Island, Bintan Island), South Sulawesi (Makassar), and East Kalimantan (Bontang)
9. Tourism is gaining a more important sector as a foreign exchange earner
10. Currency of Indonesia: Indonesian rupiah (Rp) (IDR)

Foreign Trade of Indonesia.

1. Petrol and gas contribute to 70% of total export earnings and 60% of the Indonesian Government revenues
2. Besides petroleum and liquefied natural gas, forestry products, rubber, coffee, tea, tin, nickel, copper, palm products, and fish make significant contributions to the export earnings of Indonesia
3. In the recent years some steps have been taken to promote and stimulate the non-petroleum exports, which include handicrafts, textiles, precious metals, tea, tobacco, cement, fertilizers as well as manufactured products
4. Air transport and sea ports are being widespread to cater the growing traffic on both local and International sectors, of passengers as well as freight
5. The Port of Jakarta is the largest Indonesian seaport and one of the largest seaports in the Java Sea basin, with an annual traffic capacity of 45 million tonnes of cargo and 4,000,000 TEU (twenty-foot equivalent unit)

(c) EENI Global Business School (1995-2022)
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