International Agreement On Free Trade Within The Framework Of Trans-Pacific Partnership (TPP) And Regional Comprehensive Economic Partnership (RCEP): Its Relevance For Indonesia

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International Agreement on Free Trade: TPP and RCEP and their relevance for Indonesia

In the era of globalization, free trade has become a crucial aspect of international relations, particularly in the Asia Pacific region. The two prominent agreements, Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP), aim to increase economic growth in this region. However, these agreements have also given rise to various challenges and controversies. On one hand, some circles view this agreement as an effort to improve economic welfare; on the other hand, there is an assumption that the agreement is a form of modern colonialism that can harm member countries, including Indonesia.

Understanding the Relevance of TPP and RCEP for Indonesia

The relevance of TPP and RCEP for Indonesia can be understood by examining the country's position in these agreements. In the context of international law, Indonesia's position in TPP and RCEP is seen as an international agreement that is treaty contract, which means only binding the parties involved in it. As ASEAN member countries, Indonesia has the responsibility to consider its national position and interests when participating in these agreements. Although Indonesia has been part of RCEP since 2012, its involvement in the TPP is not in line with the existing national interests.

The Impact of TPP and RCEP on ASEAN Centralization

The presence of TPP and RCEP in the international trade map has a significant impact on the centralization of ASEAN. RCEP is expected to strengthen ASEAN's position as a center for economic growth, while TPP is often considered a threat to regional integration because of its complex rules. In this case, the presence of RCEP functions to strengthen cooperation between ASEAN member countries, as well as providing space for countries outside ASEAN to be involved. This highlights the importance of understanding the implications of TPP and RCEP on ASEAN's economic growth and regional integration.

Relevance of Indonesia's National Interest in TPP and RCEP

Although RCEP is more compatible with Indonesia's national interests, the presence of TPP demands deeper attention. TPP carries a lot of rules that are not in line with Indonesia's economic priorities and domestic policies. Therefore, there are concerns that joining TPP can cause negative impacts on certain sectors, such as agriculture and local industries. In facing various free trade agreements, Indonesia needs to take selective and careful steps to ensure that its national interests are maintained.

The Challenges of Joining TPP and RCEP

Joining TPP and RCEP poses several challenges for Indonesia. The complex rules and regulations of TPP can cause difficulties for Indonesian businesses, particularly in the agriculture and local industries sectors. Additionally, the presence of TPP can lead to a loss of economic sovereignty, as Indonesia may be forced to adopt policies that are not in line with its national interests. Therefore, it is essential for Indonesia to carefully consider its involvement in TPP and RCEP, taking into account the potential impacts on its economy and national interests.

Conclusion

Overall, TPP and RCEP have high relevance for Indonesia. RCEP looks more profitable and in line with national interests, while TPP is more complex and has the potential to cause challenges. Considering the impact of various existing FTAs, Indonesia needs to adopt a careful approach in joining international agreements in order to maintain economic sovereignty and national interests. Thus, wise decision making in the context of international trade will be the key to the future of the Indonesian economy.

Recommendations for Indonesia

Based on the analysis of TPP and RCEP, the following recommendations can be made for Indonesia:

  1. Careful consideration of TPP and RCEP: Indonesia should carefully consider its involvement in TPP and RCEP, taking into account the potential impacts on its economy and national interests.
  2. Selective and careful steps: Indonesia should take selective and careful steps to ensure that its national interests are maintained when joining international agreements.
  3. Economic sovereignty: Indonesia should prioritize its economic sovereignty and national interests when making decisions about joining international agreements.
  4. Regional integration: Indonesia should continue to promote regional integration and cooperation with other ASEAN member countries to strengthen its position in the region.

By following these recommendations, Indonesia can ensure that its national interests are maintained and that it can benefit from the opportunities presented by TPP and RCEP.
Frequently Asked Questions (FAQs) about TPP and RCEP for Indonesia

In this article, we will address some of the frequently asked questions about TPP and RCEP for Indonesia.

Q: What is the main difference between TPP and RCEP?

A: The main difference between TPP and RCEP is the level of commitment and the scope of the agreements. TPP is a more comprehensive agreement that covers a wider range of issues, including trade in goods and services, investment, and intellectual property. RCEP, on the other hand, is a more limited agreement that focuses on trade in goods and services.

Q: What are the benefits of joining TPP and RCEP for Indonesia?

A: Joining TPP and RCEP can bring several benefits for Indonesia, including:

  • Increased access to new markets and customers
  • Improved trade relations with other countries
  • Increased investment and economic growth
  • Improved competitiveness and efficiency in the economy

Q: What are the challenges of joining TPP and RCEP for Indonesia?

A: Joining TPP and RCEP can also pose several challenges for Indonesia, including:

  • The need to adopt new laws and regulations to comply with the agreements
  • The potential impact on domestic industries and jobs
  • The need to invest in infrastructure and human resources to take advantage of the agreements
  • The potential risks of losing economic sovereignty and national interests

Q: How can Indonesia balance its national interests with its commitment to TPP and RCEP?

A: Indonesia can balance its national interests with its commitment to TPP and RCEP by:

  • Carefully considering its involvement in the agreements and taking selective and careful steps to ensure that its national interests are maintained
  • Prioritizing its economic sovereignty and national interests when making decisions about joining international agreements
  • Continuing to promote regional integration and cooperation with other ASEAN member countries to strengthen its position in the region

Q: What is the role of ASEAN in TPP and RCEP?

A: ASEAN plays a crucial role in TPP and RCEP as a regional organization. ASEAN has been actively involved in the negotiations and has worked to promote the interests of its member countries. ASEAN has also been instrumental in promoting regional integration and cooperation, which is essential for the success of TPP and RCEP.

Q: How can Indonesia benefit from the ASEAN Economic Community (AEC)?

A: Indonesia can benefit from the AEC by:

  • Increasing its access to new markets and customers
  • Improving its trade relations with other countries
  • Increasing investment and economic growth
  • Improving competitiveness and efficiency in the economy

Q: What is the future of TPP and RCEP for Indonesia?

A: The future of TPP and RCEP for Indonesia is uncertain and will depend on various factors, including the outcome of the negotiations and the impact of the agreements on the Indonesian economy. However, it is clear that Indonesia will need to carefully consider its involvement in these agreements and take steps to ensure that its national interests are maintained.

By understanding the FAQs about TPP and RCEP for Indonesia, we can better appreciate the complexities and challenges of these agreements and the importance of careful consideration and planning to ensure that Indonesia's national interests are maintained.