Category Archives: ASEAN

Indonesia’s Experience in the ASEAN context

GoLive Indonesia co-founders Professor Christopher Findlay (University of Adelaide) and Professor Mari Elka Pangestu (University of Indonesia, a former Indonesian Minister of Trade and Minister of Creative Economy) presented their work “The Services Sector as a Driver of Change: Indonesia’s Experience in the ASEAN context” at the 10th Sadli Lecture on Tuesday 12th April 2016 in Jakarta.

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Prof. Christopher Findlay (left) and Prof. Mari Elka Pangestu (right) presenting at the 10th Sadli Lecture in Jakarta

The event was hosted by LPEM at the University of Indonesia, Indonesia Project at Australian National University and the ISD (Indonesia Services Dialogue). Annual Sadli lecture series continue to highlight important and local issues using a regional context.

In his opening remarks, Indonesian Trade Minister H.E. Mr Thomas Lembong shared his recent experience of trade negotiations with the European Union and Australia. He highlighted that the negotiations have been focussed on two aspects: i) the services sector; and ii) the digital economy. Any country that has not provided enough attention to the services sector will be left behind.

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Indonesian Trade Minister H.E. Mr Thomas Lembong at 10th Sadli Lecture in Jakarta

The Minister nicely summarised that:

The services sector is “the 21st century’s issue.

In his keynote speech, Professor Christopher Findlay summarised that the services sector contributes to Indonesia’s 45% of GDP and 43% of employment. About 60 million people are employed in services, which indicates an increase of 20 million in the last decade. Indonesia exports mainly travel and transport and also imports travel and transport.

Despite its potentials, this sector is under-developed.

Employment is still mostly in unskilled and informal sector such as trade in construction, but growing in other more formal sectors.

Services sector grows with income. Professor Findlay pointed out that services growth is fundamentally about the organisation of production in particular the use of contracting out services.

The services sector is about providing value adding activities by each other.  He also observed that there is an interesting connection with urbanisation.

In regards to its connection with trade, whilst services require contract, technological change improves ‘tradeability’.

Services sector also supports participation in global value chains. In short, Professor Findlay concluded that the services sector contributes to productivity growth and other sector’s competitiveness.

Within the policy context, Professor Mari Elka Pangestu observed that services sector tends to be regulated because of the simultaneity of consumption and production. Moreover, the services sector regulates first mover advantage and market power in order to regulate competition.

According to OECD and World Bank data, Indonesia has a relatively restrictive policy regime in services especially for restrictions on foreign entry and employment of people. In their econometric analysis, Prof Findlay and Prof Pangestu find that the services restrictiveness index explains more of the variation in services that other variables.

Professor Pangestu pointed out that policy in the services sector is complex and difficult to assess. There is also a complex coordination required across agencies and this requires political will. Several steps to develop modern services sector include diversifying the economy and taking the advantage of technological developments; providing source of foreign exchange; and enhancing human capital and providing jobs.

Policy decision making should also improve transparency; generate better policy information; and implement reforms.

As defined by Prof Pangestu:

Quite often bad times lead to good policy and good times lead to bad policy.

A remaining question is how we can contribute to this growth and policy discussion and ensure that the growth and policy development is inclusive?

More details fabout Prof Findlay and Prof Pangestu’s talk can be found from their BIES article.

Written by Dr. Risti Permani, Lecturer, Global Food Studies, University of Adelaide.
GoLive Indonesia would like to thank Dr Risti Permani for her contribution. Photos are courtesy of Dr. Risti Permani.  

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10th Sadli Lecture “The Service Sector as a Driver of Change: Indonesia’s Experience in the ASEAN Context”

LPEM FEB UI , ANU Indonesia Project and ISD presents

The 10th Sadli Lecture and International Services Summit 2016

on

“The services sector as a driver of change: Indonesia’s experience in the ASEAN context”.

by

Professor Mari Elka Pangsetu (Universitas Indonesia & CSIS) and

Professor Christopher Findlay (The University of Adelaide)

The event will take place on Tuesday, 12 April 2016 at the Sumba Room, Hotel Borobudur, Jakarta 08.30 – 15.30. Places are limited, RSVP is essential. Details can be found below.

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Embracing 2016

Wishing everyone Happy New Year 2016!

We must say 2015 was a great  year for us and we believe that 2016 will be as thrilling if not more. GoLive Indonesia has lined up some exciting program for 2016, among others, the 3rd Indonesia Research Day, GoLive Day Out, Meet and Greet and our regular discussion series.

For the region, 2016 kicks off ASEAN Economic Community. ASEAN sees this as a community of opportunities which opens up market of 622 million people from 10 countries, a market worth of over US$2,5 trillion and the 7th largest economy in the world.

ASEAN Community represents ASEAN countries pursuit of becoming a region that collaborates and promote economic, cultural and social development to improve living standards. Detailed information on ASEAN Community Fact Sheets can be found here.

GoLive Indonesia hopes to continue debate and discussion about Indonesia and the region from a multi-dimension perspective. We encourage you to contribute to the debate by sending us your articles and opinion to be published on our website and participate in our discussion series throughout the year. Together we look forward to delivering constructive and insightful inputs for policy-making process.

 Maju bersama GoLive Indonesia!

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ASEAN Economic Integration: Challenges and Strategies

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Kiki Verico, Faculty of Economics University of Indonesia

Southeast Asia is among the important pillars in Asia’s economic integration whereby ASEAN is expected to gain solid economic integration from trade and investment. This would mean that ASEAN must have significant and positive relations in her intra regional trade and intra regional investments. Yet a previous study finds them to be significant nevertheless having negative relations (Verico, 2012). Given its long-run economic integration objective, ASEAN must turn this relation into one that is significant and positive. This will require an economic convergence by which an equivalent level of playing field within its member states.

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Natural Rubber Economic Cooperation in Southeast Asia: Can it be a ‘building block’ for ASEAN?

Tlogo Rubber Plantation - Salatiga (Java - Indonesia)

Kiki Verico, Faculty of Economics University of Indonesia

One of the key products in Southeast Asia’s agriculture sector is rubber. This product is important and strategic for Southeast Asia hence it has been included among the top eleven priority products of the ASEAN Economic Community (AEC) 2015. It has been expected to be the engine of growth for Southeast Asia’s economy and the powerhouse to transform the ASEAN economic integration paths from free flows of goods to free flows of capital. The latter is identified from its ability to enhance trade and investment integration among the ASEAN members.

Can natural rubber economic cooperation in Southeast Asia be a building block for ASEAN?

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ASEAN-BIS: Messages from Prime Minister Julia Gillard

Day 3 of the ASEAN Business and Investment Summit presented the last session on ASEAN-Australia relationships. According to asean-bis.com, the ASEAN-Australia-New Zealand (AANZFTA) was signed on 27 February 2009, and subsequently entered into force for most signatories on 1 January 2010. It has now entered into force for all signatories, except Indonesia. Covering over 620 million people and a combined GDP of A$3.5 trillion, AANZFTA is the largest FTA Australia has entered into, and is the most comprehensive FTA that ASEAN has signed. AANZFTA provides a solid platform for strengthening and deepening the economic relationship between Australia and ASEAN.

What are Prime Minister Gillard’s key messages?

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The ASEAN-BIS Day 3 (18 November 2011) – More on ASEAN-Japan Relationships

ASEAN-Japan economic relationships are not all about government-to-government partnerships. The two regions have witnessed continuing progress in industry-to-industry partnerships too. The panellists in the ASEAN-Japan business and investment relationship session include Setsuo Iuchi (President of JETRO Thailand and Southeast Asia), Suparno Djasmin (Deputy Director PT Astra International Tbk), Karen Agustiawan (President Director of Pertamina), and Arifin Panigoro (Founder of Medco Group).

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