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Should Indonesia join the Trans-Pacific Partnership?

Prasetyono, Pipin and Wibowo, Agung (2016): Should Indonesia join the Trans-Pacific Partnership?


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In October 2015, 12 Pacific Rim economies reached a conclusion to establish a new free-trade agreement, namely the Trans-Pacific Partnership (TPP). The TPP has five features to cope both issues covered by previous free trade agreements as well as current and emerging trade issues, which are (1) comprehensive market access by eliminating or reducing tariff and non-tariff barriers, (2) regional approach to commitments, (3) addressing new trade challenges by promoting innovation, productivity, and competitiveness, (4) inclusive trade by covering the issue of small and medium enterprises and capacity building in trade and development issues, and (5) platform for Pacific integration by an open membership system. During his visit to Washington DC in late October 2015, President of Indonesia Mr. Joko Widodo officially declared Indonesia’s intention to join the TPP. This paper aims to investigate the economic benefits and challenges of joining the TPP for Indonesia. This paper argues that Indonesia should join the TPP, given the vast and wide opportunities of new market expansion

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