In Indonesia, Trans-Pacific Partnership (TPP) has grown into an issue widely discussed by government,business, and academics. Data and study on implications of TPP on Indonesia’s economy, however, is limited, hence influential to government’s preparedness for a policy.
“TPP is huge, we have to see it aspect by aspect as well as macro wise because they are interconnected,” said Head of Economics Dept, Centre for Strategic and International Studies (CSIS), Dr. Yose Rizal Damuri.
He put forth this idea whilst being the moderator for a national seminar and public discussion titled Estimating Indonesia’s Preparedness to Join Trans-Pasific Partnership (TPP) that was organised by UGM Centre for World Trade Centre Studies (PSPD) UGM, Centre for Asia Pacific Studies (PSAP) UGM, Center for Economics and Development Studies (CEDS) Universitas Padjajaran, also CSIS, on Monday (15/8) at UGM Faculty of Social and Politics Sciences UGM.
This seminar is an agenda to give a projection to the impact of TPP to the economy based on the study into investment protection.
TPP that started in 2006 has the goal to enhance economic ties between member countries, tariff barrier cut, and boost trade for economic growth. The member countries are US, Japan, Singapore, Malaysia, and Australia. Indonesia is yet to join the pact.
“Five out of ten countries that are Indonesia’s main export target are TPP members, and five out of ten sources of import are also from them. So, we have to really think it through on the interest of Indonesia in the TPP,” said Secretary to Coordinating Minister for the Economy, Dr. Ir. Lukita Dinarsyah Tuwo, M.A., whilst delivering her keynote speech.
She highlights the aspects that affect the decision for Indonesia related to the TPP, “If we cannot get flexibility, access to TPP needs changes to some regulations of Indonesia, including 45 laws and 50 government regulations,” she added. She emphasised the need for a detailed study before determining whether to join the TPP.