Trade and Agriculture Directorate

Indonesia and OECD - Trade

 

Indonesia’s co-operation with the OECD since 2007 has increased significantly and now extends to a wide range of policy areas of mutual interest, including trade.

OECD conducts analytical work and facilitates dialogue in support of multilateral trade liberalisation, within an informal and non-negotiating setting. The Organisation is further developing its relationship with the G20 countries through biannual meetings that bring policymakers together to discuss important global trade policy issues.

The OECD Global Forum on Trade is another important vehicle for dialogue on trade-related policies between OECD members and partner economies. The November 2011 Global Forum focused on trade, employment and inclusive growth.

Trade and jobs
Policy experience in Indonesia has been examined in the context of the International Collaborative Initiative on Trade and Employment (ICITE), a joint undertaking of 10 international organisations including OECD, UNCTAD, World Bank, World Trade Organisation and Asian Development Bank, that are working together to better understand the mechanisms by which trade interacts with employment.

% change in merchandise trade, 2000 - 2008
Indonesia and selected other economies

Source: OECD Main Economic Indicators

Services trade
The OECD has also embarked on an ambitious long-term project to identify, catalogue and analyse barriers to international trade in services (i.e. domestic regulations that impact services trade). These regulations are being compiled in a database and used to compute Services Trade Restrictiveness Indices (STRI). So far work has been completed for all 34 OECD countries in four pilot sectors: computer and related services, professional services, construction, and telecommunications.

Throughout 2011-12, the OECD will examine the full logistics chain and extend the STRI project to include partner economies, including those in Southeast Asia. This unique project will provide policymakers and trade negotiators with the information and measurement tools they require to identify barriers, improve the domestic policy environment, negotiate international agreements and open up international trade in services.

Did you know?

In Indonesia the services sector represents more than 47% of GDP and absorbs 40% of the workforce. Services generate more than two-thirds of GDP globally and provide over 70% of employment in OECD economies.


Trade in raw materials
The OECD currently collects information from around 100 countries, including Indonesia and other Southeast Asian countries, on export restrictions on raw materials. This information will be compiled in a database which will then be used to analyse the economic effects of export restrictions in exporting and importing countries.

Aid for trade
The OECD is actively working with other international agencies to improve the effectiveness of aid for trade. It welcomes the active engagement of Southeast Asian countries in the OECD/WTO Aid for Trade Initiative. The third edition of the joint OECD/WTO publication Aid for Trade at a Glance highlights the objectives, challenges and processes of trade-related assistance in the region and also showcases several case studies from Southeast Asia, including Indonesia, Cambodia, Lao PDR, Thailand, and Vietnam.


Note: Sectors with no data are not included
Source: Aid for Trade at a Glance 2011 (OECD and WTO)

Export credits

Governments provide official export credits through Export Credit Agencies in support of national exporters competing for overseas sales. The OECD develops and monitors international disciplines in this area to ensure a level-playing field among exporters and to reduce trade distortions.

The Arrangement on Officially Supported Export Credits stipulates the most generous financial terms and conditions for officially supported export credits. The OECD also provides a forum for discussion and co-ordination of national export credit policies.


Taken from:
Active with Southeast Asia: Special Focus on Indonesia (pdf, 72 pages, 5.9 MB)


See also:
 OECD Trade Committee: Working Together with Non-member Partners (pdf, 4 pages, 172 KB)
Information on how the OECD Trade Committee is engaging with key non-member partners in current OECD work on trade.

 

 

 

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