Steps To Be Taken By The Government In Anticipating The Free Market

The steps that must be taken by the government in anticipating a free market are as follows:

1. In the era of free trade and globalization, every policy maker in the field of international
trade, as well as implementers in the field, are required to have an international perspective.

2. From the trends that have taken place in the international arena, it must be realized that
national interests need to be fought for better and safer in the context of the interdependence
of all nations, not by throwing problems at each other to other countries.

3. In the era of globalization, the concept of sovereignty must be used with great wisdom
considering that this concept has undergone substantial changes. international.

4. Indonesia's membership in the WTO is a legal reality that brings consequences in terms of
rights and obligations. To secure the rights derived from this membership in the long term is
to strengthen the multilateral trading system that has been agreed upon by the majority of
these nations.

5. As a developing country, Indonesia is very concerned that the laws governing international
trade traffic are strictly enforced.

6. One way to uphold international legal norms is to operationalize the dispute resolution
mechanism and effectively implement the decisions reached.

7. After the government ratifies the WTO agreement, the attitude taken by policy makers
should be directed towards a situation of equal rights and obligations as a member of the
WTO, bearing in mind that Indonesia as a developing country which is used to receiving
special treatment will soon end as a result of the success of the nation's economic program.

8. Efforts to create mutually beneficial and orderly trade relations also require adjustments to
the relevant national laws and regulations of each country.

6. Commitments and Steps by the Government of Indonesia to Support Trade Liberalization

1. International cooperation and prospects for Indonesia in the future

In the MPR RI Decree No.IV/MPR/1999 concerning GBHN 1999-2004, particularly

regarding "foreign relations", among other things, it is explained that the direction of foreign
policy which is free, active and interest-oriented, focuses on solidarity among developing
countries, supports the struggle for independence. nations, rejecting colonialism in all its
forms, and increasing national independence and international cooperation for the welfare of
the people.
In international trade or free trade, a policy from the government needs to be enforced to
achieve an economic growth and stability that is always in a positive direction, here are
several policies from the government in international trade or free trade.

1. Customs
2. Taxes
3. Tariffs
4. Quotas
5. Appointment of Importer
6. Import Substitution

The reasons for holding international trade or free trade are:

1. Classical theory which discusses an Absolute superiority put forward by Adam Smith and
about efficiency, production costs put forward by David Ricardo

2. Modern theory which states that the factors of production are capital and a large number of
workers.

In international trade or free trade in export activities must take an action or a policy in
regulating the rate of entry and exit of goods coming from outside the country, several
policies in regulating the rate of export, namely by:
• Diversification
• Expanding market share
• Quality Improvement
• Adding types of goods
• Devaluation, namely the policy in terms of lowering the value of the currency
• Subsidy + Export Premium
• Price stability in the country
Some forms of anticipatory efforts that have not been or have been taken by Indonesia
include:

1. Provide education to the public to love domestic products more by continuing to improve
the quality of domestic products so that they are of higher quality. For example by activating
the I Love Indonesian Products (ACI) program.
2. Re-negotiate the free trade agreement or at least postpone it, especially for sectors that are
not ready.
3. Conduct product selection to protect the national industry.
4. Revoke retribution that is burdensome for the business world in the regions, so that local
industries become more competitive.
5. Tightening the inspection of incoming goods at ports must also be carried out, because
other countries are also doing the same thing.
6. Provide convenience in the form of funding, by means of business loans with low interest.
7. Activate non-tariff signs, such as the implementation of the Indonesian National Standard
(SNI), label provisions, and a number of other regulations related to safeguarding the
domestic market.
8. Improving various economic policies to deal with free trade.