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Indonesia`s Textiles and Apparel: The Challenges Ahead

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 93-104
Abstraksi Narasi : International rules governing textiles and apparel trade are undergoing transformation. The Multi-fibre Arrangement (MFA) is being phased out, and as of January 2005 textiles and apparel trade will be conducted under World Trade Organization (WTO) rules. for Indonesia, this presents challenges and opportuninities. The global trading system is increasingly seeing the introducting of preferential trade agreements (PTAs) that liberalise trade among members but discriminate against nonmembers. Major markets are negotiating new PT As that divert trade away from low-cost non-member producers such as Indonesia. China`s entry into the WTO allows producers there to take advantage of liberalised quotas and the integration of textile and apparel products into the tariff-based trade system as of 2002. With rising domestic production costs, increased local government interventations and poor tax administration, Indonesian producers face a `double squeeze`. This paper outlines the key challenges confronting the sector and makes recommendations for sustaining exports in coming years.

Indonesia`s Banking Crisis: What Happened and What Did We Learn?

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 75-92
Abstraksi Narasi : This article traces the stages of the Indonesian baking crisis of the late 1990s. Almost every stage of the handling of the crisis was complicated by governance issues. Beyond these, among the lessons identified are how quickly things can get out of hand in an apparently strongly performing economy; that at the outset of a crisis information will be every limited; and that management of a crisis will be an envolving process. A blanket guarantee covering all bank liabilities may be indispensable; how ever, the authorities are `buying time`, and the more time that has to be bought the more expensive the process will be. Transparency too is indispensable, to generate public trust and support, and to ensure that actions taken by the authorities are irreversible. Overall, while not everithing was done right, the strategy put in place had positive elements that have served to protect a core banking system and establish conditions for recovery.

Indonesian Trade Liberalisation: Estimating the Gains

Nama Pengarang : Pangestu, Mari, Tubagus Feridhanusetyawan, Charles Enoch, Olivier Frecaut, Arto Kovanen, William E. James, David J. Ray, Peter J. Minor, Asep Suryahadi dkk, Mike Waslin
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 51-74
Abstraksi Narasi : Indonesi has undergone comprehensive trade liberalisation by participating in multilateral and regional trade arrangements and by conducting unilateral liberalisation. This paper evaluates the different paths of liberalisation the country has followed, and measures their effects on the economy. It considers the impact of several liberalisation scenatios: unilateral liberalisation; regional liberalisation through APEC (Asia Pacific Economic Cooperation) and AFTA (the ASEAN Free Trade Area); and multilateral trade liberalisation through the Uruguay Round (UR). the results show that the full implementation of UR and APEC liberalisation, carried out in conjunction with the UR commitment, would lead to large welfare gains. On the other hand, the creation of AFTA is expected to add little to welfare in `indonesia or in the other ASEAN member countries.

The International Monetary Fund Support Program in Indonesia: Comparing Implementation Under Three Presidents

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 385-391
Abstraksi Narasi : The note, based mainly on the author`s experience during the crisis period as part of government teams negotiating with the International Monetary Fund (IMF), discusses how three aspects of the IMF-supported program in Indonesia--conditionality, ownership of the program and implementation capacity--affected implementation of the program under Presidents Soeharto, B.J. Habibie and Abdurrahman Wahid.

Survey of Recent Developments

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 277-305
Abstraksi Narasi : The Indonesian economy continued to stabilise in 2002, and to recover in the second and third quarters of the year from poorer performance in the previous year. Confidence was helped by a successful MPR session in August, which completed the round of constitutional reforms begun several years earlier, including provision for direct election of the president and vice president and a new bicameral elected national assembly. Sadly, just when macroeconomic conditions seemed more favourable than for some time, the tragic events in Bali in October threw a cloud over growth prospects for the final quarter and the coming year. All the indicators of macroeconomic performance had turned around by August-September. The exchange rate had appreciated significantly, year-on-year inflation was down from 15% in February to 10% by August, and nominal interest rates had fallen. These developments supported much more favourable budget outcomes for 2002. The assumptions for the proposed 2003 budget appeared generally plausible, although the 5% growth target seemed a little too optimistic, the more so in the wake of the Bali bombings. Divestment of shares from both Telkom and Indosat appeared to have secured the government`s budget target from IBRA sales for 2002, and the fire sale of IBRA debts added another Rp 23 trillion to the public coffers. Athough investment still remained flat, there had also been some important signs of credit expansion for small and medium enterprises. Some breakthroughs were achieved in the private sector, such as a resolution in the long-standing Kalimantan Prima Coal dispute on divestment of its majority shareholding, and a favourable court ruling in the Manulife case (Athukorala 2002: 145 and 147-8). At the same time, recovery in both domestic demand and exports was halting. International confidence was not helped by National Planning Agency head Kwik Kian Gie`s continuing focus on early graduation` from the IMF program. Asset sales were delayed because of haggling over the disposal of a 51% share in Bank Niaga and there were signs of spreading agricultural protection, much of it in the form of NTBs. There were strong indications that labour regulation and associated unrest were beginning to affect the investment climate. Labour- intensive manufacturing exports suffered in particular, raising much concern about job creation. The crisis over repatriation of large numbers of overseas workers from Malaysia from early 2002 did not help the labour market, especially in Eastern Indonesia.

Reinventing ASEAN: A Review Article

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 393-402
Abstraksi Narasi : -

Indonesia`s Clean Air Program

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 343-365
Abstraksi Narasi : Unprecedented industrial development during the last two decades, accompanied by a growing population, has increased the amount of environmental damage in Indonesia. A critical environmental problem is the rising level of air pollution in several large cities. This has stimulated the government to develop a national program designed to control the quantity of pollutants in the air. However, the program`s impact on economic performance and incomes has not yet been studied systematically. This paper analyses the expected impact of the clean air program on national economic performance and household incomes for various socio-economic groups.

Competition Policy in Indonesia and the New Anti-Monopoly and Fair Competition Law

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 331-342
Abstraksi Narasi : This paper explores the role of competition policy in shaping a business environment that will encourage firms to improve their efficiency and competitiveness. After discussing the scope and objectives of competition policy, and whether a liberal trade and investment regime can substitute for, or should complement, a competition law, the paper offers an assessment of Indonesia`s new competition law. Its shortcomings include a serious lack of clarity about objectives and a confusion between objectives and the means to achieve them; a failure to distinguish between various kinds of monopoly; a tendency to prohibit certain activities and agreements between firms without a clear analysis of the underlying economics involved; unnecessary and counterproductive exemptions from the provisions of the law; and failure to confront the reality that the principal obstacle to competition in the past has been unwarranted government intervention in markets.

Combating Corruption in Indonesia? The Ombudsman and the Assets Auditing Commission

Nama Pengarang : -
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 367-383
Abstraksi Narasi : Early optimism that post-Soeharto governments would lead a systematic campaign against corruption has largely been disappointed. The creation of the ombudsman and the Assets Auditing Commission (KPKPN) were hopeful signs, but both initiatives are symptomatic of the weaknesses besetting Indonesia`s anti-corruption efforts. Despite their best endeavours, both organisations have weak powers, are under-resourced, receive only token political support and exist in isolation from other investigative and enforcement agencies. International research suggests that official efforts to eliminate corruption are effective only as part of a coordinated campaign to reform administration, policy making, legislative institutions and the judiciary. Threatened exposure or punishment of corrupt officials is not enough: all the institutional incentives and disincentives for abuse of public office for private gain must be confronted. In Indonesia the problem is that most of those empowered to take such initiatives have no incentive to do so because they profit from the status quo.

Anti-Poverty Programs in Indonesia

Nama Pengarang : George Fane, Anne Daly, Stephen Sherlock, Thee, Kian Wie, Resosudarmo, Budy P., George Fane, Manning, Chris, Armida S. Alisjahbana, Boediono
Nama Majalah/Jurnal : Bies: Bulletin of Indonesian Economic Studies
Volume / Nomor Edisi : -
Nomor Halaman : 309-329
Abstraksi Narasi : Between 1994/95 and 1997/98, Indonesia`s spending on anti-poverty programs grew from 0.1% to 0.3% of GDP. The introduction of the `social safety net` raised antipoverty spending to 1.4% of GDP in 1998/99 and changed its main focus from job creation schemes, financed mainly by loans and grants to small firms and community groups, to in-kind subsidies for rice, public health care, scholarships for children in poor families and grants to schools in poor areas. The most accurately targeted program was health care, which covered twice as many people in the two poorest deciles as in the remaining eight. For most other programs, this targeting ratio was only about 1.5. We argue that the education and health care programs were the most successful, and doubt that the rice subsidy, job creation and loans schemes were worthwhile.
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