Geo XII. 20. Dampak Pasar Bebas Terhadap Indonesia.

Summary

This video discusses the impact of free trade on Indonesia's economy, exploring various economic theories from Adam Smith and David Ricardo on the concept of free markets. The speaker highlights Indonesia's participation in multiple free trade agreements, such as ASEAN Free Trade Area (AFTA), NAFTA, and the Regional Comprehensive Economic Partnership (RCEP). The video outlines both positive effects—like increased exports, job creation, and technology transfer—and negative consequences, such as reliance on developed nations and heightened competition. It concludes with a hopeful outlook on Indonesia's readiness for a globalized market through human resource development and infrastructure improvements.

Takeaways

• 😀 The concept of free trade, as explained by Adam Smith, refers to an economic system where products are exchanged freely without government intervention.
• 😀 David Ricardo's view on free trade emphasizes that it is a system involving two or more countries trading freely without government restrictions or taxes.
• 😀 The primary goals of free trade include increasing national revenue, fulfilling domestic needs, maximizing profit, expanding markets, and facilitating the transfer of technology.
• 😀 Key features of free trade include individual or corporate ownership of production resources, class distinctions between workers and capital owners, economic competition, and no government interference.
• 😀 Factors driving Indonesia towards free trade include the desire to expand markets, the shortage of domestic products, and the opportunity to export surplus goods.
• 😀 Examples of free trade areas include AFTA (ASEAN Free Trade Area), EFTA (European Free Trade Association), NAFTA (North American Free Trade Area), TPP (Trans-Pacific Partnership), and the Indonesia-Japan Comprehensive Economic Partnership Agreement (IJCEPA).
• 😀 AFTA was established in 1992, and since 2016, it has been integrated into the MEA (Masyarakat Ekonomi ASEAN), now covering 10 countries.
• 😀 The free trade agreement between Indonesia and Australia, though criticized by Indonesian livestock farmers, includes gradual implementation steps to allow local producers to prepare for competition.
• 😀 The Regional Comprehensive Economic Partnership (RCEP), involving ASEAN countries and five key partners, aims to create the largest free trade area in the world, although India recently withdrew due to concerns over domestic competitiveness.
• 😀 Positive effects of free trade for Indonesia include improved product quality, increased exports, higher national revenue, foreign investment, job creation, technological advancement, and boosting tourism, while negative effects include potential loss of domestic market competitiveness, environmental exploitation, and over-dependence on developed countries.

Q & A

What is meant by the term 'free market' in the context of economics?

A free market refers to a system where goods and services are traded with minimal government intervention. According to economist Adam Smith, it is a platform where products from individuals are exchanged freely based on the principles of supply and demand.

How does David Ricardo define a free market?

David Ricardo defines a free market as a system of international trade involving two or more countries where goods are exchanged without government-imposed restrictions, such as tariffs or taxes.

What are the primary objectives of a free market?

The primary objectives of a free market are to increase national revenue, meet domestic needs, maximize profits, expand markets internationally, and enable technology transfer from advanced countries.

What are the main characteristics of a free market?

The main characteristics of a free market include private ownership of resources, class distinctions between workers and capitalists, competition between economic agents, and a lack of government interference.

Why does Indonesia engage in free trade agreements?

Indonesia engages in free trade agreements to expand its market, maximize profits, compensate for domestic product shortages, and address excess production by exporting goods.

Can you explain the ASEAN Free Trade Area (AFTA)?

AFTA, established on January 28, 1992, is a free trade agreement within ASEAN that initially included 7 countries. It later expanded to 10 countries by 2015 and was integrated into the broader MEA (ASEAN Economic Community) in 2016.

What is the significance of the North American Free Trade Agreement (NAFTA)?

NAFTA, established on January 1, 1994, was a trade agreement between the United States, Canada, and Mexico. It was later replaced by the United States-Mexico-Canada Agreement (USMCA) in July 2020, maintaining the same trade principles.

What is the Trans-Pacific Partnership (TPP) and its members?

The TPP is a strategic economic partnership formed in 2005, involving countries around the Pacific Rim such as ASEAN members (Brunei, Singapore, Malaysia, Vietnam), Australia, New Zealand, Japan, the United States, and Mexico.

What is the Regional Comprehensive Economic Partnership (RCEP)?

RCEP, a free trade agreement involving 10 ASEAN countries and five partners (China, Japan, South Korea, Australia, and New Zealand), is intended to be the largest free trade area in the world. It covers a population of approximately 3.5 to 4 billion people and 40% of global GDP.

What are the positive impacts of free trade for Indonesia?

The positive impacts of free trade for Indonesia include improved product quality and quantity, increased exports, higher national income, greater foreign exchange earnings, attraction of investors, job creation, technological advancement, and potential growth in the tourism sector.

What are the negative impacts of free trade for Indonesia?

The negative impacts of free trade for Indonesia include increased competition for domestic products, exploitation of natural resources, greater dependency on developed countries, the rise of consumerism, and the potential for economic downturns if trade fails.

Why did India withdraw from the Regional Comprehensive Economic Partnership (RCEP)?

India withdrew from RCEP due to concerns that its domestic businesses and industries would struggle to compete against cheaper imports from other member countries, particularly in areas such as manufacturing and agriculture.