Thursday, September 23, 2010

Jakarta, 14 August 2007 – The Partnership for Governance Reform in Indonesia signed a Memorandum of Understanding (MoU) on the program support for strengthening the Ministry’s capacity in responding to trade and development challenges in a long term perspective on Tuesday, 14 August 2007 at 13.00 at the Partnership Office. The MOU which was signed by Ms. Mari Elka Pangestu, Minister of Trade, and Mr. Mohamad Sobary, the Executive Director of the Partnership marks as a beginning of a long-term cooperation between the two institutions.

Trade Vision for 2030

Vision for Trade in Indonesia 2030 has to be discussed and formulated together involving all concerns. A participatory discussion on developing a long term plan in trade sector is expected to lead into an agreement by all relevant stakeholders –sectoral government institution, regional government institutions, private sector and the public—on where the Indonesian trade is going to be in the year of 2030. Trade vision for 2030 is an integral and participatory formulation on the direction, planning framework and strategy of Indonesia in developing a progressive trade well adapted to global competitiveness to the year of 2030.

“Trade vision for 2030 is a guideline for all societies to be able to perform well in a free global competition”, stated Minister of Finance, Dr Mari Elka Pangestu. The trade vision will concretely become guidelines and references for the formulation of the Strategic Plan of Ministry of Trade for the year of 2009-2014.

Nowadays, emerging problems in trade sector, particularly in international trade are diversed, ranging from import of candies from China and Indonesia’s export of maritime products, iron ore and coal which require a comprehensive response on how we as a nation will progress in trade sector. Support from all stakeholders is a prerequisite for government’s modality in trade diplomacy in the international arena.

Formulation of vision for trade 2030 is now gaining its momentum. The general economic indicator is improving, foreign exchange reserve is increasing, stable rupiah currency, IHSG surpasses 2000 point and export is growing, even since last year the total Indonesian export has gone beyond the target of US$ 100 billions, reaching a new record of US$ 100,69 billion. This amount is twice of the export value during the crisis period of 1997 which was only approximately US$ 50 billions.

Another momentum is the improvement in the regulatory framework. The government and the Parliament has enacted Law No. 25/2007 on Investment, which regulate integrated one-stop service and simplify the administrative process for the fulfillment of relevant documents at the central and local level. The Minister of Trade is going to set a target of shortening the the period for the issuance of the SIUPP and TDP from 5 days to 3 working days. The Minister of Trade stated that in order to increase competitiveness, support from other sectors and policy framewrok are needed, such as from supportive fiscal and customs policy and application of national single window, adjustment of customs and import duties and improvement of tariff mechanism.

Support of the Partnership

In this framework, the Partnership facilitates the Ministry of Trade to develop their Strategic Plan and implementation arrangements which are effective, integrated and comprehensive. This includes arrangements in formulating far-reaching national trade policies, trade analysis and coordination and inter sectoral and regional policy formulation. Please see project fact sheet for more information on the project.

For more information please contact the Partnership office:
Fahmi Wibawa, Program Manager, Economic Governance, Public Service Governance (fahmi.wibawa); 021 390 2626 ext. 110
Edi Suhardi, Public Relations and Resource Mobilisation Manager (edi.suhardi); 021 390 2626 ext. 102