The Impact of the AFTA Tariff Reduction on Districs Economic Growth in Indonesia

Authors

  • Adiwan Fahlan Aritenang Badan Pengkajian dan Penerapan Teknologi (BPPT) Jakarta

DOI:

https://doi.org/10.5614/jpwk.2015.26.1.3

Abstract

Abstrak. Saat ini telah banyak upaya pertumbuhan ekonomi melalui liberalisasi perdagangan dan integrasi ekonomi. Melalui kedua upaya ini diharapkan dapat mendorong pembangunan daerah melalui peningkatan keterkaitan ekonomi lokal dengan perdagangan global. Dalam dua dekade terakhir, Indonesia telah terlibat aktif dalam perdagangan bebas ASEAN (ASEAN Free Trade Area/AFTA) sebagai perjanjian perdagangan multilateral antar negara-negara Asia Tenggara. Artikel ini mengkaji dampak liberalisasi perdagangan AFTA terhadap inklusifitas pembangunan ekonomi kabupaten/kota pada era otonomi daerah. Artikel ini menganalisis dampak AFTA terhadap pembangunan kabupaten/kota di Indonesia. Artikel ini menunjukkan bahwa dampak AFTA masih pada pusat kegiatan industri manufaktur dan daerah maju. Selanjutnya, artikel ini berpendapat bahwa peran dominan pemerintah pusat tetap diperlukan untuk menjamin manfaat AFTA bagi pembangunan daerah.

Kata kunci. ASEAN FTA, konvergensi wilayah, Tarif CEPT

Abstract. Trade liberalization and economic integration have been globally adopted to accelerate the collective economic growth. Specifically trade liberalization is viewed as a crucial economic factor that promotes local economic development through promoting local economy into the global trade. This phenomenon is also found in Indonesia with its involvement in the ASEAN Free Trade Area (AFTA) as a multilateral agreement that selected specific industry sectors for trade inclusion. This article reviews the impact of AFTA trade liberalization on districts economic growth in the context of Indonesia's decentralised domestic political system. The article argues that the persistent dominant role of central government is still needed to ensure the AFTA's benefits for the district development.

Keywords. ASEAN FTA, regional convergence, tariff CEPT

Downloads

Download data is not yet available.

References

Aritenang, A.F. (2011) The Effects of Decentralisation and AFTA on Indonesia Regional Development in Mapping the Potentials. Proceedings of TIIMI 2010 Conference.

Aritenang, A.F. (2012) The Impact of State Restructuring on Indonesia's Regional Economic Convergence, Unpublished PhD Thesis, Bartlett School of Planning, University College London, UK.

Amiti, M. and J. Konings. (2005) Trade Liberalisation, Intermediate Inputs and Productivity: Evidence from Indonesia. C.E.P.R. Discussion Papers.

Astiyah, S., S.P. Matondang and G. S. Rokhimah. (2011) Decentralization and Domestic Trade Interdependence , In A.Ananta, M. Soekarni, and S. Arifin (Eds), The Indonesian Economy: Entering a New Era. Singapore: ISEAS Publishing.

Barro, R.J. and X. Sala-i-Martin. (1991) Convergence across States and Regions. Brookings Papers on Economic Activity 22, 107-182.

Barro, Robert J. and Xavier Sala-i-Martin. (2004) Economic growth (Second edition). Boston: MIT Press.

Booth, A., (2003) Decentralisation and poverty alleviation in Indonesia. Environment and Planning C: Government and Policy 21(2), 181 - 202.

Bowles, P. and B. MacLean. (1996) Understanding trade bloc formation: The case of the ASEAN - free trade area. Review of International Political Economy 3(2), 319.

Chandra, A.C. (2008) Indonesia and the ASEAN Free Trade Agreement: Nationalist and Regional Integration Strategy. Plymouth: Lexington Books.

Inayati, R. S. (2010) Implementasi AFTA: Tantangan dan Pengaruhnya terhadap Indonesia. Jurnal Penelitian Politik 7 (2).

Juan-Ramon, V.H. and L. A. Rivera-Batiz. (1996) Growth in Mexico: 1970-93. MF Working Paper, 92.

Kuncoro, M. (2009) Ekonomika Indonesia: Dinamika Lingkungan Bisnis di Tengah Krisis Global. Jakarta: UPP STIM YKPN.

Madariaga, N., S. Montout and P. Ollivaud. (2004) Convergence, trade liberalization and agglomeration of activities: an analysis of NAFTA and MERCOSUR cases. Cahiers de la Maison des Sciences Economiques. Paris:Universite Pantheon-Sorbonne

Narjoko, D.A. and P. D. Amri. (2007) The Developmental Gap between the ASEAN Member Countries: The Perspective of Indonesia. ASEAN Economic Bulletin 24(1), 45-71.

Nesadurai, H.E.S., (2003) Attempting developmental regionalism through afta"i: The domestic sources of governance. Third World Quarterly 24(2), 235.

Oktaviani, R., A. Rifin and H. Reinhardt. (2007) A Review of Tariffs and Trade in the ASEAN Priority Goods Sectors. In Denis Hew, ed. Brick by Brick: The Building of an ASEAN Economic Community, 59-85. Singapore: Institute of Southeast Asean Studies

Pike, A., A. Rodrguez-Pose and J. Tomaney. (2006) Local and Regional Development 1st ed., New York: Routledge.

Resosudarmo, B.P. and Y. Vidyattama. (2006) Income Disparity in Indonesia: A Panel Data Analysis. ASEAN Economic Bulletin 23(1), 31-44.

Rivas, M.G., (2007) The effects of trade openness on inequality in Mexico. The Annals of Science 41, 545-561.

Rodrguez-Pose, A. and A. Bwire. (2004) The economic (in)efficiency of devolution. Environment and Planning A 36(11), 1907 - 1928.

Soesastro, H. (1991) The ASEAN free trade area (AFTA) and the future of Asian dynamism. Jakarta: CSIS

Sukma, R. (2003) Conflict management in post-authoritarian Indonesia, In H. Aveling and D. Kingsbury (eds), Autonomy and Disintegration in Indonesia. London: Routledge Curzon.

Tongzon, J.L. (2005) Role of AFTA in an ASEAN Economic Community. In Denis Hew, ed. Roadmap to an ASEAN Economic Community, 127-147. Singapore: Institute of Southeast Asian Economic Studies

Downloads

Published

2015-04-02

How to Cite

Aritenang, A. F. (2015). The Impact of the AFTA Tariff Reduction on Districs Economic Growth in Indonesia. Journal of Regional and City Planning, 26(1), 18-27. https://doi.org/10.5614/jpwk.2015.26.1.3

Issue

Section

Research Articles

Most read articles by the same author(s)