The CSIS Economics department has been hard at work in studying the impacts of Free Trade Agreements (FTAs) that Indonesia joined. In recent decades, Indonesia has actively engaged in forming FTAs, notably with its major trading partners in the neighboring region of East Asia.
The report attempts to examine the effect of FTAs to Indonesian economy in four different discussions. First topic covers the discussion about Indonesia strategy and approaches its position in FTA negotiation. Secondly, the report reviews the FTAs implementation especially in trade, services and investment sector.
The topic specifically addressed the development, achievement and also impediments in implementing the agreements. The third is econometrics exercise which examines impact of FTA to foreign trade and economic welfare by using gravity model. Lastly, to complete the analysis from desk study, field survey has been conducted in Jakarta and Surabaya to gather information from private sector about FTA and the effect to their business in terms of export, import and domestic market competition.