International Trade Has Raised the Standard of Living in Indonesia

One of the prominent discourses is about economic growth in Indonesia. Growth

is one of the indicators of development progress, according to Wijono (2005). One
of the things that can be used as a driving force for growth is international trade.
Economic growth is one measure of achievement of the nation’s economy.
Although it can not be denied that other measures are more important, economic
growth caused the standard living in Indonesia increased.
Firstly, international trade and trade liberalization is the logical nexus.
International trade has provided significant benefits, including poverty alleviation,
increased GDP, and reduced unemployment and also raised the living standard.
The World Trade Organization (WTO) agreement’s preamble explains how
eliminating the trade distortion is a prerequisite for achieving the goals of raising
“standards of living” and ensuring “full employment”.
Secondly, one of the international trades in Indonesia is the import-export
of certain things and other matters. Indonesia established export promotion
policies in the early 1980s. As a result, the policies promote exports as a driving
force for growth. International trading in Indonesia broadens the market for
domestic products by opening up new market. The original domestic productions
which were limited due to a limited market within the country, now it can be
expend again. One of the international trade examples in Indonesia: prior to
international trade, vacant land in Indonesia, such as gardens, was usually left
alone. However, once international trade was established, a large amount of land
was planted with spices, coffee, tea and other materials for export. Thus,
international trade has a positive impact on Indonesia’s economic.
In conclusion, with the improvement of the economic in Indonesia, the
standard of living in Indonesia also increased, this happens as an adjustment and
balancing economic development in Indonesia. From the explanation that has
been explain, I decided that I agree if international trade has raised standard living
in Indonesia.