CSIS conducted a study to look at the economic impacts of Indonesia’s current Free Trade Agreements (FTAs). The study will provide evidence-based information on what the existing FTAs has brought to the economy, particularly to the private sector. This study is expected to give solid foundation on Indonesia’s future strategy of free trade agreements and trade liberalization. Careful examination on the impact of ongoing FTAs would give better understanding on how the economy should react proportionally while at the same time provide good insights to potentials that have not been realized. This study is also expected to change political attitude towards future trade agreements.

Studies in this report cover three main aspects of FTAs: (i) strategy behind trade agreement policy, (ii) issues surrounding implementation and utilization of facilities in FTAs, and (iii) the impacts of FTAs. Each of those issues is analyzed in detail in each chapter of this report. There are two methodologies employed to examine the last issue on the impact of FTAs: quantitative method using available data and statistical techniques, and survey of business perception on the impact of FTAs.