Please choose one of the topics below. Then, write an essay consisting of 3 paragraph.

Elaborate your
own opinion with the references related to the topic that you choose.

1. Indonesia has signed some Free trade agreement with some countries in Asia. Do you think
that this decision is beneficial for Indonesia economic? Explain your reason!
2. is a measure of the rate of rising prices of goods and services in an economy. Although it can
have a negative impact on society it also can give benefit to some people. Who are they?
Why?

Answer

1. In 2020 the Ministry of Trade of the Republic of Indonesia has carried out many agendas for
meeting free trade agreements with various countries. The goal is to increase Indonesia's trade volume
in the global market.
Establishing trade cooperation between countries is the only way so that Indonesia can improve the
economy, especially during the current pandemic. The existence of international cooperation activities
between countries is believed to be able to provide effectiveness in accelerating economic recovery
due to the pandemic, such as through Indonesia's free trade agreements with various ASEAN
countries.

Indonesia has free trade agreements with several countries in the world that provide benefits in
Indonesia's trade sector. There are about 23 trade agreements in Indonesia with countries in the world
that have entered the stage of signing, ratification, or implementation. One example is the Indonesia-
Australia trade agreement. The free trade agreement in the Indonesia-Australia Comprehensive
Economic Partnership Agreement (IA-CEPA) takes effect on 5 July 2020 after the ReI DPR has
completed the ratification process.

Australian Trade Minister Simon Birmingham said the Indonesia-Australia trade agreement will
increase export opportunities for both countries and provide significant benefits to businesses and
investors, especially during the crisis caused by the coronavirus (COVID-19) pandemic.

I think Indonesia's decision to take several free trade agreements with several countries in Asia is very
useful, because it can provide good opportunities in spurring growth and investment in Asian
countries during the adaptation/recovery process in the current pandemic situation.

2. Inflation is a measure of the rate of increase in the price of goods and services in an economy.
Inflation occurs in every country, both developed and developing. This economic phenomenon cannot
be eliminated. Therefore, the efforts made are only limited to reducing and controlling its value. The
condition for inflation is that price increases last for a long time and cover almost all goods and
services.

Besides being able to have a negative impact on society, it can actually provide benefits for some
people. An example is debtors, namely people who receive debt, they will get a profit because with
inflation, the money they return will have a lower value than when they borrowed.

The second example is an entrepreneur who has a higher income than the increase in production costs.
If the price of goods rises (during inflation), producers will be encouraged to increase the quantity of
their goods. So, an increase in the number of these goods will certainly increase the income of
producers. And if the goods being sold are basic needs, people will still buy them even though the
price goes up.
Sources and references:
•Modul ADBI4201
• smesta.kemenkopukm.go.id
• ruangguru.com