Indonesia eyes joining TPP within three years

[Reashot Xigwin]

• 10 Oct 2015 at 12:32 365
  
• WRITER: KYODO NEWS

Trade ministers from the 12 Trans-Pacific Partnership member countries participate in the closing press conference in Atlanta on Monday after reaching an agreement on the trade pact. (EPA photo)


JAKARTA — Facing Vietnam as its biggest trade competitor, Indonesia is eyeing joining a US-led 12-nation Pacific trade deal within two or three years, although the process may take longer than expected, media reports and government officials said Friday.

Local media reports quoted Trade Minister Thomas Lembong as saying that competition with Vietnam, particularly in the shoe and textile sectors, may get fiercer in the future, particularly after Hanoi joins the Trans-Pacific Partnership.

The United States, Japan, Vietnam and nine other countries reached a broad agreement Monday that would create a free trade zone covering around 40% of the global economy, after more than five years of negotiations.

According to Lembong, Vietnam poses a threat to Indonesia not only because of the TPP but also via a free trade agreement it has negotiated with the European Union.

Indonesia only began informal talks with the EU on a free trade agreement last month and will kick off formal negotiations in January.

Vietnam thus stands to undercut Indonesia in the European and US markets.

"So, Vietnam will get bigger access to the market (and) we will be far left behind," he was quoted as saying by the state-run news agency Antara.

In the face of such a potential challenge, President Joko "Jokowi" Widodo has expressed hope that Indonesia can join the TPP within two years, he said.

The minister also said that companies will continue to invest in Indonesia as long as they get assurances that the country will eventually join the free trade agreement with the European Union and the TPP.

"Factory owners will be ready (to continue investing in Indonesia) as long as there are certainties that the free trade agreements will be there within two or three years," he said.

Deny Kurnia, director for relations with the Asia-Pacific Economic Cooperation forum and international organizations at the Ministry of Trade, shared a similar view, saying that if Indonesia sticks with the status quo, it will alienate itself from other markets in the globalisation process.

But unlike ordinary free trade agreements, the process of joining the multi-faceted TPP may take longer than expected.

"There should be a consensus in the Cabinet and approval later by the parliament," Kurnia told Kyodo News late Friday.

After domestic concerns are addressed, negotiations for joining the treaty can start, but the talks may not be easy to complete as each segment of the agreement must be in line with Cabinet policy and the parliament's views.

"In the meantime, we will have already faced a line of competitors," he said.

The wide-ranging TPP deal sets rules not only on international trade, but also on investment and the handling of intellectual property such as biologic drug patents.

The TPP also covers environmental conservation and labor protection, as well as restrictions on the favorable status of state-owned enterprises in a bid to revitalize economic activities in the Pacific Rim economies.

Jokowi will pay a visit to the US in late October and meet President Barack Obama, government officials dealing with economic and investment issues and American businesspeople. Business and investment issues may be highlighted during those meetings.

Indonesia eyes joining TPP within three years | Bangkok Post: news

 

[Viva_Viet]

Good,join the TPP and US will show no mercy to ID.

VN is different case in TPP

 

[Reashot Xigwin]

Good,join the TPP and US will show no mercy to ID.

VN is different case in TPP

Uh-hum:
Indonesia gains highest investment in ASEAN

 

[VALKRYIE]

Uh-hum:
Indonesia gains highest investment in ASEAN

VN > ID at 2014 2nd quarter. ID >VN at 2015 1st quarter. Lets wait for the 2nd quarter of 2015 and after TPP, EU, RECP, CEFA.

Indonesian members love to boast how Vietnam is not their equal.

 

[Nike]

VN > ID at 2014 2nd quarter. ID >VN at 2015 1st quarter. Lets wait for the 2nd quarter of 2015 and after TPP, EU, RECP, CEFA.

Indonesian members love to boast how Vietnam is not their equal.

with all of the ruckus recently, Indonesia is keep building her military and economic posture

 

[Reashot Xigwin]

Indonesia eyes new trade agreements
Avantika Chilkoti — Jakarta

©Bloomberg
Indonesia is poised to reveal a series of new trade agreements in the coming months, as Jakarta struggles to draw a line under a period of protectionist policies and inward-looking rhetoric.

Thomas Lembong, trade minister, said Indonesia was feeling the heat following the agreement of the outline Trans-Pacific Partnership (TPP) earlier this month, a flagship treaty that involves 12 Asia-Pacific nations but excludes Southeast Asia’s largest economy.

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“We admit we have fallen very far behind — we are way behind the curve,” he said. “It’s worrisome that some of our neighbouring countries that are direct competitors are so ahead of us.”

A trade agreement with the EU is top of the agenda, according to Mr Lembong, who is eager to correct Indonesia’s reputation for harsh protectionism and regulatory uncertainty during President Joko Widodo’s state visit to the US later this week.

In the past year, Jakarta has increased import duties on a range of consumer goods and flip-flopped on language requirements for expatriate workers, while officials travelled overseas promoting Indonesia as an investment destination and lobbied for lower tariffs.

“Interaction among countries is not in a way that different to interaction with people,” Mr Lembong said. “You have to treat people the way you want them to treat you, so trying to be closed while you ask others to be open just violates common sense.”

In particular, analysts are watching for new trade and investment deals during Mr Widodo’s trip to Washington, amid signs that Indonesia is putting China front and centre of its plans to revive growth.

Earlier this month, Japanese investors were left despondent when Indonesia awarded a $5bn contract to build the country’s first high-speed rail link to China.

Mr Lembong noted that the US is on track to overtake China as Indonesia’s largest export destination this year.

The US was the leading destination for Indonesia’s non-oil and gas exports in September with trade of $1.28bn, while China took some $1.05bn.

“It’s natural that a lot of emerging markets might look to China for infrastructure but I think an emerging country’s needs are manyfold and I don’t think there is any way a country or a region could fulfil all of the requirements,” he said.

Mr Lembong, a Harvard-educated former private equity executive, was appointed to the cabinet in August as growth ebbed and the president overhauled his team in preparation for a major reform push.

Economic growth has slowed to below 5 per cent in the first two quarters, while Mr Widodo pledged to boost growth to an average 7 per cent during his five-year term. His government’s popularity ratings have fallen rapidly as consumer confidence has waned.

“I think we can easily admit that President [Widodo’s] first year has been a bit bumpy and hopefully the reshuffle helps a lot there,” Mr Lembong said. “We have only belatedly come round to changing course.”

http://www.ft.com/cms/s/0/0a4fd100-76db-11e5-a95a-27d368e1ddf7.html#axzz3p7amKLr2

 

[anon45]

Mr Lembong noted that the US is on track to overtake China as Indonesia’s largest export destination this year.

The US was the leading destination for Indonesia’s non-oil and gas exports in September with trade of $1.28bn, while China took some $1.05bn.

At first glance this sounds surprising, but when you think about the decline of the Renminbi and the strength of the US dollar it make sense. Just goes to show that claims of the decline of the US economy are, as always, greatly premature.

The US is one of the more diversified economies in the world, and very resilient.

 

[DaiViet]

Indonesian enjoyed long peace time. Vietnam was able to close the gap faster than expect though Vietnam infrastructure largely destroyed during wars. Soon or later Vietnam will surpass Indo if two countries maintain same rate.

 

[pr1v4t33r]

The Archipelago Economy: Unleashing Indonesia's potential
~ Mckinsey Institute ~

The World Factbook

 

[Nusantara]

Indonesian enjoyed long peace time. Vietnam was able to close the gap faster than expect though Vietnam infrastructure largely destroyed during wars. Soon or later Vietnam will surpass Indo if two countries maintain same rate.

lets see
I've seen this kind of statement since 2006

 

[DaiViet]

lets see
I've seen this kind of statement since 2006

Where did you see similar statement in 2006?

Im for sure Vietnam will. Present Indo is just slightly ahead Vietnam interm of gdp per capital nothing else. How long Indo was in peace time and when started?

 

[pr1v4t33r]

Indonesia – Economic Giant within ASEAN
Indonesia is the largest economy in the ASEAN States, and with its more than 240 million inhabitants, is population-wise the fourth largest country in the world. Being a G20 member since 2003, Indonesia is an economic powerhouse in Southeast Asia, and is likely to become economically even stronger in the future.

With its central geographical location in ASEAN, Indonesia has established itself as both a manufacturing centre and transit hub in the region. In particular, the remarkable economic stability, combined with a continuous process of democratization since the Asian crisis in 1997, Indonesia hast built up the basis for further economic success.

A recent McKinsey study sees Indonesia rising by 2030 from position 16 to position 7 of the world’s largest economies.

 

[DaiViet]

Largest economy because of largest population does not equal to best performance.

Infrastructure Indonesia least developed. while Vietnam on par with Thailand and Malaysia.
Military is less modernized compare with Vietnam.
OCED & IQ & other intelligent competition lower than Vietnam.
Even Soccer/Footballs lose for Vietnam.
Economist: Indonesia Falls Behind Vietnam in Export Diversity | Jakarta Globe
Indonesia : Indonesia wants to join TPP as Vietnamese threat looms - Textile News Indonesia

Since, Vietnam and Indonesia are ASEAN and non traditional enemy, we would cheer for each other, however Indonesian as I seen jealous with us and burn our poor fishermen ship. Indo sure don't look friendly to us.

When you think you want to join TPP as late commer you need to get every member permission/supports else you should join China pact. Last I heard you wanted to be pact with China. This time good opportunity.

OR

Accept the defeat and see us as ASEAN leader. I know Laos, Cambodia, Thailand and Myanmar see us as leader not Indonesia.

 

[Indos]

ASEAN Free Trade is the testing case though. Nope, we are not in the competition with the Vietnamese, it is more with Singaporean in the service industry. I want to beat them up in my industry.....Need to have more aggressive marketing since in term of service quality, I believe I am already superior into them.

 

[DaiViet]

ASEAN Free Trade is the testing case though. Nope, we are not in the competition with the Vietnamese, it is more with Singaporean in the service industry. I want to beat them up in my industry.....Need to have more aggressive marketing since in term of service quality, I believe I am already superior into them.

Ok Kudo Indonesian friend.