TPP Brings More Harm than Good: Economist

Suci Sedya Utami    •    Senin, 30 Nov 2015 18:10 WIB
TPP Brings More Harm than Good: Economist
Indef Economist Enny Sri Hartati (Photo: MI/Mohamad Irfan), Jakarta: Indonesian President Joko Widodo (Jokowi) sent a clue that Indonesia is interested and considering to join the Trans Pacific Partnership (TPP) to increase the performance of Indonesia's trade.
However, a different assessment occurred from the INDEF Economist, Enny Sri Hartati, who stated that if Indonesia is taking part of the cooperation, then Indonesia will gain more losses than benefits.
Enny sees that the entrance of Indonesia into the trade agreement will cause the bloating trade balance deficit. It happens as the import will be more than the export. 
"INDEF had calculated that it would be a loss to join, if only looking at the export and import potential. It means that if we join now, there will be more deficit as there are more imports," Enny mentioned to, in Jakarta, Monday (11/30/2015).
Moreover, she continued, Indonesia's export is still relying on the commodity, whereas the other states have been more superior in exporting produced goods in the form of products. Therefore, if Indonesia join TPP, it will only provide a market for other countries.
She took an example that when a Free Trade Agreement (FTA) occurs, or the agreement of free trade with several other countries such as China and Japan, it caused a deficit in the trade balance. "With Malaysia, China, US, Japan, we were in surplus. Now we are experiencing deficit. Now it is only with India that we have a surplus," she stated.
Therefore, Enny assessed that it is better for Indonesia to strengthen the strategy in increasing the level of domestic products first, prior to the commitment in TPP. Indonesia should take benefit of TPP to boost export, as the readiness domestically is needed.
"We strengthen first the domestic potential. Let's focus on that first. Beside the try out, let's exercise for the AEC ahead," she concluded.


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