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Indonesian Trade Promotion Center (ITPC)



Frequently Asked Questions

What is Import-Export?

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Export in general is the act of removing goods or commodities from within the country to import them to other countries. While Import is the opposite process, entering goods or commodities from other countries into the country. Exports and Imports of goods in bulk generally require the intervention of customs in the sending and receiving countries.

What are the indicators in assessing the performance of Indonesia's exports and imports so far?

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One that is commonly used to assess trade performance is the growth in the value or volume of exports-imports on average per year or its long-term growth trend.

What is the rationale for using these indicators?

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Indonesia's good export performance is reflected in one of the ways by its relatively high average annual growth rate compared to its competitors, or by its positive (increasing) long-term growth trend. The increasing long-term growth trend reflects a long-term change in the level of competitiveness of these products in global trade.

What else can be a trading performance indicator?

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Other indicators that can measure trade developments are product diversification and market diversification. Export performance can be said to be good if the products exported are varied and the export market is wide.

What Are Trade Tariffs?

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In export-import activities, tariffs are also referred to as customs, duties, or charges. Tariff is a tax imposed on a commodity traded across territorial borders. Tariffs are generally imposed on imported goods, although some are imposed on exported goods. Tariffs are usually associated with protectionism, economic policies that restrict trade between countries.

What is the Purpose of Imposition of Tariffs?

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There are many purposes or reasons for imposing tariffs, including protecting industry or other domestic sectors, stabilizing the price of goods, reducing the trade balance deficit, increasing employment opportunities, for fiscal reasons, preventing dumping or for political purposes.

What is MFN Import Duty Rate?

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MFN (Most Favorable Nations) Import Duties Tariffs are import duty rates imposed on imported goods entering a country from other countries, except for countries that have a special agreement regarding import duty rates with that country.

What are the Benefits of Establishing a Free Trade Area/Agreement (FTA)?

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FTA is formed because it provides benefits to its members, including trade creation and trade diversion. Trade creation is the creation of trade transactions between FTA members that had never happened before, due to incentives due to the formation of FTAs. Trade diversion occurs due to incentives to reduce tariffs, for example, Indonesia, which previously always imported sugar only from China, switched to importing sugar from Thailand because it became cheaper and stopped importing sugar from China.

What are the Substances Covered by an FTA?

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There are several substances that are usually covered in bilateral and regional FTAs, including trade in goods, trade in services, investment, labor movement, capacity building, customs procedures, intellectual property rights and so on.

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