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A Research On Indonesia's Interest Toward Tpp

2342 words - 10 pages

PSCI 2750
INTERNATIONAL RELATION
DR. TUNKU MOHAR BIN TUNKU MOHD MOKHTAR

SECTION 2
SEMESTER 1 2015/2016

“A RESEARCH ON INDONESIA’S INTEREST TOWARDS
JOINING TRANS PACIFIC PARTNERSHIP”

Prepared By:
Muhamad Fadel Wijaya (1221665)
Muhamad Fatih Azka (1311515)
Ahmad Azzam Al-Qoyyimuddin (1313511)

KIRKHS
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
TABLE OF CONTENTS
1st Chapter: Introduction
A. Background...............................................................................................................3
B. Importance of the Topic...........................................................................................3
C. Research ...view middle of the document...

One of the reasons is because Indonesia is not ready to join TPP. The former president insists the justification he gave for refusing to join the trade pact while he was in office are still valid today.
However, Jokowi concerned that staying out of the TPP would put Indonesia at a disadvantage. Indonesia should not miss TPP as he believes that TPP would prompt Indonesia to improve the standard and quality of its products to be able to compete in the global market. However, does this high degree of trade liberalization really matters to Indonesia?

B. IMPORTANCE OF THE TOPIC
1. To find out the motivation behind the Indonesia interest of joining TPP.
2. To understand the consequences that Indonesia will receive after joining TPP.
3. To find out the importance of TPP for Indonesia.

C. RESEARCH QUESTION
1. What makes Indonesia is interested to join?
2. What are the risks for Indonesia from this free trade agreement?
3. How it is important for Indonesia to join?

D. ARGUMENT AND HYPOTHESIS
1. Jokowi’s declaration of Indonesia’s interest to join the TPP is influenced by his party, Indonesian Democratic Party of Struggle.
2. The risks that Indonesia will face after joining the TPP is Indonesian health crisis, as TPP has a bill that makes big pharmaceutical companies such as those originated from U.S. can a monopoly over participating countries. Indonesians may not be able to afford the American made drugs and this may lead to health crisis.
3. TPP could be a golden opportunity to improve the Indonesia economic growth, increase the number of trades and foreign direct investments between Indonesia and the participating countries in the trade agreement and tape the potential of having additional new markets in the member states of the TPP.

CHAPTER 2
THEORETICAL FRAMEWORK

A. DEFINITION OF KEY TERMS
For the purpose of clarification the study uses the conceptual and operational definition as follow:
1. Free Trade Agreement (FTA) or Trade Liberalization
Free trade agreement is an agreement that refers partnership between at least two countries to eliminate or to decline trade barriers such as import quotas and tariffs, and to improve trade of goods and services with each other. ASEAN Free Trade Agreement, for example, a free trade agreement between ASEAN Countries.
2. Trans-Pacific Partnership (TPP)
Trans-Pacific Partnership is a trade deal between 12 Pacific Rim countries, which was achieved on 5 October 2015 after seven years of negotiations. The participating countries are Malaysia, Vietnam, Singapore, Chile, United States, Australia, New Zealand, Brunei Darussalam, Canada, Japan, Mexico, and Peru.

B. LITERATURE REVIEW
In doing this research, we look at several previously written researches, that discussed the topic that we raise in order to understand what is already known and to provide a knowledge foundation of the current study that is being surveyed. Here are some...

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