Category Archives: Services

3rd Indonesia Research Day – Keynote Speaker: Prof. Christopher Findlay AM

Speakers Profiles_3rdIRD-10-10CCF

Professor and Executive Dean of the Faculty of the Professions, The University of Adelaide, Australia. His research interests centres on Australia’s economic relations with Asia, including topics such as services trade and investment reform and industrialisation of the Chinese economy and the impact of industrialisation in East Asia on the Australian economy.

Professor Findlay was a principal researcher in a major research program on impediments to services trade and investment. In the first three years of the program, innovative methods were established to assess and measure the impact of the impediments. The methodology provided estimates of tariff equivalents of barriers to forms of services sector transactions and led to the incorporation of those estimates into general equilibrium models. A book on this work was published in 2000. The second three years of this program, funded like the first by the ARC, focused on the impact of domestic regulation on services trade and investment and has led to two new collections of papers published in 2002 and 2003. His previous appointments included Head of School of Economics at the Faculty of the Professions, University of Adelaide and Professor of Economics at the Australian National University.

In the 3rd Indonesia Research Day, Prof. Findlay will talk about Trade in Services as agent of chance – Indonesian experience.

You can find his recent article via this link here.


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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.

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.


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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Filed under ASEAN, Conference, East Asia, Indonesia, Services, Trade

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


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


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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Challenges and Opportunities for Indonesia and Australia Relationship in the Asian Century


On 17 May 2013, Counsellor in Politics and  Senior First Secretary of Economic Affairs of The Republic of Indonesia Embassy in Australia, Mr Widya Rahmanto and Mr Denny Lesmana shared some valuable  insights into  “Challenges and Opportunities for Indonesia and Australia (IA) Relationship in The Asian Century”. This discussion forum was organised by the Indonesian Embassy, South Australian Chapter of The Indonesian Student Association (PPIA), and fully supported by  PPIA at Flinders University, University of Adelaide and University of South Australia and  GoLive Indonesia.

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Filed under Agriculture, Australia, Culture, Democracy, East Asia, Economic development, Economic Integration, Education, Employment, Food and agriculture, Indonesia, Infrastructure, Investment, PPIA academic discussion, Services, Trade

Trade in value added, what is the difference?


iPod Ad in Beijing

Christopher Findlay, Dean of Faculty of Professions, University of Adelaide

Would you believe it?  Indonesia actually has a trade surplus with China.  How did this happen?  This is what we find in a new data set released by the OECD and the WTO last month.

We are familiar with the iPod story: it is exported from China but only about 10% of the value of the product is actually added in China.  The rest comes from other countries, either inputs to the item or services that facilitate the process of its assembly. This sort of case study has prompted work on the new data set, which is constructed to find out where the value in a product is created, from foreign sources or domestic.

What are the key messages from the dataset about Indonesia?

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Moving Forward on Regional Integration in Trade in Services

Michael Cornish, University of Adelaide
Trade liberalisation — whether of goods or services — faces the classic and recurrent political-economy problem attached to serious reform.
The losers from liberalisation are often in concentrated groups, such as those industries that huddle behind tariff and non-tariff protection, enjoying the largesse of direct government financial support. The winners, meanwhile, including individual, government and industry consumers, have gains that are spread thinly between them.The uncertainty associated with reform efforts frequently generates resistance — and rigorous debate over which reform path to chart only heightens this sense of uncertainty, creating yet more resistance. There is less research on the gains from trade liberalisation in services than there is in goods. As a result, the liberalisation of services has received little advocacy, only reinforcing the region’s sluggish efforts toward reform.

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More on Structural Reform

Kereta Rangkaian Listrik (KRL)

Professor Christopher Findlay, University of Adelaide

An article by  by Maria Monica Wihardja in the Jakarta Post(21/9/2011) adds another valuable contribution to the continuing discussion of the structural reform challenge of Indonesia.

Dr Wihardja mentions the APEC study which was also noted here in a recent post.  She mentions the size of the gains from structural reform.    This is an important point and the results of that analysis are interesting and worth exploring a bit further.
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Filed under Economic development, Economic Integration, Employment, Indonesia, Reform, Review of article, Services, Trade, Transport and logistics