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Bulletin of Indonesian Economic Studies
ISSN: 0007-4918 (Print) 1472-7234 (Online) Journal homepage: http://www.tandfonline.com/loi/cbie20
The Impacts of Discriminative Trade Arrangements
on Foreign Direct Investment and Foreign Trade in
Southeast Asia during the 1988–2008 Period
Kiki Verico
To cite this article: Kiki Verico (2013) The Impacts of Discriminative Trade Arrangements on Foreign Direct Investment and Foreign Trade in Southeast Asia during the 1988–2008 Period, Bulletin of Indonesian Economic Studies, 49:2, 238-239, DOI: 10.1080/00074918.2013.809843
To link to this article: http://dx.doi.org/10.1080/00074918.2013.809843
Published online: 26 Jul 2013.
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238 Abstracts of doctoral theses on the Indonesian economy
In chapter 5, the thesis uses multi-objective optimisation modelling techniques to indicate the trade off between generating costs and CO2 emissions. It argues that Indonesia needs to switch from steam-coal subcritical technology to super-critical and ultrasupersuper-critical technology, which would increase generating costs by less than 2% and, in turn, would reduce the country’s yearly CO2 emissions by almost 7%. The study also shows an inherent squeezing effect in adopting more advanced steam-coal technology, which emphasises the need to promote renew-able energy and gas utilisation. A green-path power system, for example, would allow CO2 emissions and generating costs to increase gradually.
Chapter 6, which comprises conclusions and policy recommendations,
high-lights two main points: irst, that in designing electricity policy, decision makers
need to focus on demand-side management, technology switching, fuel switching
and price incentives that relect service costs; and, second, that power-planning
models need to cover and measure economic and business dimensions, natural resource and environmental dimensions, and social dimensions.
© 2013 Maxensius Tri Sambodo
http://dx.doi.org/10.1080/00074918.2013.809846
The Impacts of Discriminative Trade Arrangements on Foreign Direct Investment and Foreign Trade in Southeast Asia during the 1988–2008 Period
Kiki Verico ([email protected]) Accepted 2013, Waseda University, Tokyo
This thesis observes the impacts of trade-discriminative arrangements on foreign
direct investment (FDI) inlows and foreign trade in Southeast Asia, by focusing
on three levels of economic cooperation – sub-regional, bilateral and regional – in Indonesia, Malaysia and Thailand.
At the sub-regional level, it uses the International Tripartite Rubber Organiza-tion (ITRO) as a proxy for an exclusive economic cooperaOrganiza-tion among a limited number of ASEAN member states. ITRO was established in 2001, by Indonesia, Malaysia and Thailand, which, for the last 20 years, have controlled more than 65% of the world’s natural-rubber production. In order to enhance the market
power of its major producers – and therefore increase their proits and stimulate
FDI – ITRO rules both the quantity of production and the trade of natural rubber.
This thesis examines whether ITRO is effective in attracting FDI inlows of rubber
into ASEAN member states.
At the bilateral level, this thesis observes direct bilateral free-trade agreements (BFTAs) between ASEAN member states and non-member states, to examine
whether BFTAs are effective in attracting FDI inlows into the former. At the
regional level, it examines the impact of the ASEAN Free Trade Area (AFTA) on
both intraregional trade (trade creation) and FDI inlows (investment creation). It
hypothesises that AFTA is effective in increasing intraregional trade and
attract-ing FDI inlows into ASEAN member states. It also uses the impact of BFTAs on
intraregional trade as a proxy to prove the existance of the ‘noodle-bowl phenom-enon’, or the complicated trade arrangements in Southeast Asia.
Abstracts of doctoral theses on the Indonesian economy 239
This thesis inds that ITRO is ineffective in attracting FDI inlows at the sub-regional level. At the bilateral level, it inds that direct BFTAs are effective in attracting FDI inlows into Malaysia but not into Indonesia and Thailand. By cre
-ating such unequal beneits among ASEAN member states, BFTAs may widen
the economic gap in Southeast Asia and endanger ASEAN’s objective of
eco-nomic integration. This thesis also inds that BFTAs hamper intraregional trade,
whereas, at the regional level, AFTA is effective in enhancing it but ineffective in
attracting FDI inlows.
These results show that several levels of economic cooperation exist in Southeast Asia. AFTA (regional), ITRO (sub-regional) and BFTAs (bilateral) remain
ineffec-tive, however, in attracting FDI inlows into ASEAN member states and, accord -ingly, are unable to transform ASEAN’s economic integration from intratrade to combined trade and investment.
© 2013 Kiki Verico
http://dx.doi.org/10.1080/00074918.2013.809843
Mineral Governance, Conlicts and Rights: Case Studies on the Informal Mining of Gold, Tin and Coal in Indonesia
Nina Indriati Lestari ([email protected]) Accepted 2011, Australian National University
Mining had been occurring in Indonesia long before the present nation came into being. The successive governments of the sovereign Indonesian nation-state have felt it necessary to control mineral exploitation and to regulate mining activities – article 33(3) of Indonesia’s Constitution (1945) mandates the state to control and exploit all lands, waters and natural riches contained therein for the greatest
ben-eit of the people. Through the country’s mining law and government decrees,
these ‘controlling’ and ‘exploiting’ aspects often manifest themselves in the grant-ing of mingrant-ing permits to selective big companies and in the prioritisgrant-ing of their investments and interests. Consequently, Indonesia’s mining regulations have tended to protect the big players, often while illegalising the presence of informal miners.
Informality in the Indonesian economy extends into its mineral industries, from extraction, to processing, to transportation and marketing. Between 1997 and 2000, these activities employed nearly ten times more people, on average, than the formal mining sector. All of those involved in mining are required to have a permit from the relevant district government – until recently, they required permits from the central government – as regulated in Law 4/2009 on Mineral and Coal Mining. Most informal miners choose to operate secretly, however, fall-ing into the category of those performfall-ing ‘any minfall-ing activity without permit from government institutions according to the laws’.
The government’s stance on informal mining also involves local resource gov-ernance: Law 22/1999 on Regional Governance enables district heads to regu-late and issue mining permits to individuals or groups without consulting the central government. Consequently, there are groups of miners who operate with
