Indonesia’s Role in International Trade Organizations

5 min read|Last Updated: January 16, 2023|

Rapid expansion of international trade has resulted in the globalisation of industry areas including product and service standards. As a result, products and services supplied to a foreign market must meet minimal criteria in order to be competitive.

The Indonesian government uses these standards to protect its market from being overwhelmed by foreign products and services, which would eventually harm its economy. This also gives confidence to local companies incorporated in Indonesia to do well, be it a local PT, PT PMA, or any other business entities available in Indonesia.

Why is Indonesia a Part of International Trade Organizations?

Membership in an international trade organisation can help any country develop such standards. Because of these memberships, standards are largely respected in most Indonesian sectors. Many of these requirements apply to locally produced, manufactured, and exported goods and services.

Indonesia has had a trade imbalance in recent years. This is owing to the fact that Indonesian exports have decreased. Changes in the global economic landscape are to blame for this reduction and result in the rise of imports. Due to its fast-increasing domestic consumption, Indonesia is becoming a net importer of oil.

Indonesia’s principal exports now include gas, coal, electrical goods, and machinery. China, Japan, and the United States are currently Indonesia’s most important trading partners. Indonesia has risen to prominence as a regional and global economic powerhouse. It belongs to the G20 and the Association of Southeast Asian Nations (ASEAN).

Indonesia’s Role as a Member of the Association of Southeast Asian Nations (ASEAN)

The Indonesian Ministry of Foreign Affairs has placed much emphasis on regional strategic collaboration in order to achieve national objectives. This is primarily done through its interactions with other members of ASEAN; these interactions serve as the foundation of Indonesia’s foreign policies.

Indonesia’s ASEAN participation reflects the country’s foreign policies. Indonesia is one of ASEAN’s most important members because of the following:

  • Its significant regional impact
  • Large population
  • Key geographic location
  • Plenty of natural resources

Its regional contributions in the sectors of security and economics reflect this fact. Indonesia’s contributions provide international public services, aid in the resolution of regional disputes, and improve institutions throughout Southeast Asia.

The country has also played an important role in developing a secure and independent security environment in Southeast Asia. It has placed a strong emphasis on the development of institutional frameworks that will help to strengthen regional stability, democracy, and human rights.

Indonesia’s Role as a Member of the World Trade Organization (WTO)

The World Trade Organization is the only international trading body (WTO). The WTO’s principles were established in 1995 and are based on many conventions that have been ratified by a number of countries throughout the world.

The WTO accords attempt to regulate the actions of goods and services suppliers, exporters, and importers. The World Trade Organization (WTO) was founded on the basis of a number of earlier agreements, including the Uruguay Round, the General Agreement on Tariffs and Trade (GATT), and others.

Indonesia’s principal role in the WTO has been to negotiate the Doha Development Agenda. Indonesia’s participation and position in the DDA negotiations are focused on national interests in order to promote economic growth and relieve poverty.

Indonesia has also worked to establish positions in other WTO groups that promote the DDA’s development goals. Indonesia has also been involved in problems that have significant implications for the country, such as economic growth, intellectual property, climate change, and WTO multilateral trade laws.

Indonesia’s Role as a Member of the Asia-Pacific Economic Cooperation (APEC)

The Asia-Pacific Economic Cooperation (APEC) is a 1989-founded cooperation forum. It is made up of 21 economies that are bordered by the Pacific Ocean.

Indonesia has reaped various benefits as a result of its membership in the Asia-Pacific Economic Cooperation (APEC). As an APEC member, Indonesia has been able to strengthen ties with government and economic officials from other nations that are both policy partners and fellow APEC members.

Beyond that, Indonesia has also benefited greatly from the technical training and information supplied by APEC officials. It has empowered them to entice investors from other APEC nations to invest in Indonesia and its economy.

Indonesia plays an important role within APEC. It has attempted to promote regional economic development. It does so through trade and investment collaborations as well as through membership of the multilateral trade system. It has also sought to promote fair and sustainable economic growth and has advocated for greater emphasis on issues by which it is directly affected. Such issues include food security, marine issues, and the role of women in the economy.


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Is Indonesia part of a trade agreement?2021-12-07T11:58:44+08:00

Indonesia is a member of the free trade arrangement between ten ASEAN member states and China. 

Why did Indonesia join APEC?2020-04-02T15:03:08+08:00

In 1989, Indonesia became one of the 12 founding members of APEC. Each of the countries involved in founding APEC, including Indonesia, did so in order to increase the level of regional cooperation among all countries involved, particularly with regard to economic matters. 

How has Indonesia’s domestic oil consumption increase?2020-04-02T15:03:26+08:00

The latest statistics show that approximately 1,785 barrels of oil are consumed every day in Indonesia. This figure represents a steep increase from that of a decade prior, when it stood at around 1,288 barrels per day. For this reason, Indonesia has had to increase the amount of oil which it imports.

Is Indonesia expected to leave any major international trade organizations?2020-04-02T15:01:53+08:00

There has not been any speculation regarding the cessation of Indonesia’s membership in any international trade organizations. Therefore, it can be concluded that Indonesia will remain a member of each organization of which it is currently a member for the foreseeable future.

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