Impacts of Indonesia-India Free Trade Agreements  on Agricultural Sector of Indonesia: A CGE Analysis

Kustiari, Reni; Hermanto, nFN

doi:10.21082/jae.v35n1.2017.33-48

Cited by 6 publications

(7 citation statements)

References 1 publication

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“…Several studies have discussed the impact of free trade agreements, especially in eliminating import tariffs for specific products between Indonesia and its trading partners (Kartini & Margaret, 2020;Kustiari & Hermanto, 2017;Tsutsumi et al, 2019). Some commodities studied include palm oil, fishery products, and textiles, with partner countries including India, the European Union, the Gulf Cooperation Council, and China.…”

Section: Introductionmentioning

confidence: 99%

Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia

Muchtar,

Asy’ari,

Rodoni

et al. 2024

Etikonomi

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Research Originality: The second-largest organisation after the UN, with a population of 24.4% worldwide, makes OIC countries a potential market. This paper contributes to the existing literature on trade within them by focusing on crucial aspects of the trade agreement's impact on the halal food industry.Research Objectives: This study examines the influence of a free trade agreement (FTA) on Indonesian halal food exports.Research Methods: Using panel data from 23 countries spanning the period from 2003 to 2019, the paper employs the gravity model to assess the impact of the FTA and other variables on Indonesian halal food exports to OIC countries.Empirical Results: The findings indicate that Indonesian food exports to OIC countries with FTAs experience a notable 68% increase compared to those without such agreements. The study reveals GDP, population size, trade openness, and exchange rate positively affect food exports to OIC countries. However, trading partners' distance and entry time exhibit a negative correlation.Implications: This research holds significance for the Indonesian government as it provides valuable insights for considering the acceleration of trade agreement ratification with OIC countries. JEL Classification: F13, F47, C68How to Cite:Muchtar, M., Hafid, A., Rodoni, A., Amalia, E., & Hosen, M. N. (2024). Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia. Etikonomi, 23(1), 147 – 166. https://doi.org/10.15408/etk.v23i1.32951.

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Section: Introductionmentioning

confidence: 99%

Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia

Muchtar,

Asy’ari,

Rodoni

et al. 2024

Etikonomi

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“…Previous research related to the AIFTA has been carried out, however, research on the impact of the AIFTA on Indonesia's palm oil exports is still limited. A research on the impact of AIFTA on trade between Indonesia with India showed that AIFTA has no influence on trade between the two countries then the impact of the Indonesia-India FTA on the agricultural sector and Indonesia's economy as a whole by using the Global Trade Analysis Project model which is linked to the general equilibrium model (CGE) [5]. Recent research conducted by on fluctuations in Indonesia's CPO exports to India after the ratification of AIFTA showed that there are significant benefits for Indonesia's CPO exports [6].…”

Section: Introductionmentioning

confidence: 99%

Impact of ASEAN-India Free Trade Area on Indonesian Palm Oil Export: A Gravity Model Approach

Glorius¹,

Akhmadi²,

Widodo³

2021

Proceedings of the 4th International Conference on Sustainable Innovation 2020–Social, Humanity, and Education (ICoSIHESS 2020)

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This research focuses on investigating whether Indonesia's membership in the ASEAN-India Free Trade Area (AIFTA) increases Indonesia's palm oil exports to India. The analysis technique used in this study is gravity model with estimates using panel data. The data derived from 36 partner countries of Indonesia's palm oil exports in period of 1999-2018 have been applied to analyze the factors that affect Indonesia's palm oil exports. The result showed that population, exchange rate, and partner countries arable land have significant impact on Indonesian palm oil exports, while distance and GDP of destination countries show insignificant result. Indonesia's membership in AIFTA has been proven not to have a significant impact on Indonesia's palm oil exports.

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“…One of the countries which is Indonesia's main trading partner is India. The large population of India and the mastery of information technology can become a potential market for exports of Indonesian agricultural commodities in the future (Kustiari and Hermanto, 2018). India is well known as the second most populous country in the world with a population of 1.3 billion in 2017.…”

Section: Introductionmentioning

confidence: 99%

“…Among the leading commodities in the non-oil and gas sector traded between Indonesia and India are agricultural commodities. Some of Indonesia's leading agricultural commodities that are well-known in the world trade rankings including rubber, oil palm, cocoa and coffee (Kustiari and Hermanto, 2018;Reynalto, 2019). Although the trade surplus, but during the period 2013-2017, the balance of trade in agricultural commodities Indonesia decreased by -0.015%.…”

Section: Introductionmentioning

confidence: 99%

An Analysis of Factors Influencing Indonesia’s Leading Agricultural Commodities Export to India

Rosyidi

Irianto

Purnomo

2021

Caraka Tani J. Sustain. Agric.

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Indonesia's trade balance to India had been decreasing since 2013. That has been affected by the downward trend in agricultural export value of Indonesia. This problem has raised Government’s attention to increase the export performance. This research aimed to analyze the determinants of Indonesia’s leading agricultural commodities export to India. Panel data regression model was explored to analyze secondary data of the range year 2001 to 2017. The factors examined in this study were India’s real Gross Domestic Product (GDP) per capita, Rupiah exchange rate, export price of Indonesia agricultural commodities and India’s import tariff. Model testing used the Chow, Hausman and Lagrange tests to compare and select the best model. The determinant of the variables testing used statistical and classical assumption tests. The results showed that India’s real GDP per capita has positive influence to the export value which means an increase in the purchasing power of trading partners would increase the value of exports. The Rupiah exchange rate has negative influence to the export value which means that the depreciation of rupiah to dollar causes a decrease in the export value. The export price of Indonesia’s agricultural commodities have positive influence on the export value, however the tariff has no effect. The policy that can be suggested to the government is to provide support and encourage domestic producers to increase exports to India.

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Impacts of Indonesia-India Free Trade Agreements on Agricultural Sector of Indonesia: A CGE Analysis

Cited by 6 publications

References 1 publication

Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia

Does a Free Trade Agreement’s Impact on the Export of Halal Food to OIC Countries Matter? Evidence from Indonesia

Impact of ASEAN-India Free Trade Area on Indonesian Palm Oil Export: A Gravity Model Approach

An Analysis of Factors Influencing Indonesia’s Leading Agricultural Commodities Export to India

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