Why Indonesia Is a Part of International Trade Organizations
Rapid international trade growth has led to the global development of industry sectors such as product and service standardization. Therefore, to be competitive, products and services sold to a foreign market have to fulfill minimum specifications. Standards are often used by the government of a particular country as a means of defending the country’s market from being overrun by foreign products and services which would eventually damage the condition of the domestic economy. Membership of an international trade organization can aid in the creation of such standards in any country. Standards in most Indonesian sectors are generally followed because of such memberships. Many of these standards apply to products and services which are locally produced, manufactured, and exported.
In recent years, the nation has experienced a trade deficit. This is due to the fact that exports from Indonesia have declined. This decline has been caused by changes in the global economic landscape. Consequently, imports have increased. Indonesia is today a net importer of oil due to its rapidly growing domestic consumption. Gas, coal, electrical appliances, and machinery are Indonesia’s main exports today. The countries which are Indonesia’s primary trading partners today are China, Japan, and the United States. Indonesia has become a leading economy at both the regional and global levels. It is a member of both the G20 and Association of Southeast Asian Nations (ASEAN).
Indonesia has experienced rapid growth and expansion of its financial sector. This was especially true during the last quarter of the 20th century. Although the impact of the 1997-1998 Asian financial crisis temporarily stalled Indonesia’s economic growth, the country’s economic stability has since been restored while poverty levels in the country continue to decline.