Author: Abdulloh Makhrus X

Publisher:

Published: 2013

Total Pages:

ISBN-13:

Indonesias geographical location and condition gives advantages for its economic and trade activity. With abundant natural resources and human resources, Indonesia is considered as one of main actor in international trade since Indonesia started to involve in free trade activity, and Indonesia export product started to spread out all over the world. European Union as an economic community which consists of 28 countries hold important role in the world economic growth, and its trade activity have been affect of world trade. Indonesia has a good relationship with European Union. The European Union is a strategic partner in trade and investment. Indonesia external trade grows along the increasing demand from European members country, both for manufacturing goods and raw materials from Indonesia to support industries in Europe. Main objective in this research is to observe and analyze the trade relationship between Indonesia and European using various data from external trade statistic of European Union (EUROSTAT and Jean Monet working files), International Monetary Fund (IMF), Indonesia Bureau of Statistics and other related data in order to know what is the main product/commodities that Indonesia export to European Union as well as main product/commodities that Indonesia import from European Union during period 2009 to 2011, and also to reveal the main gateways of Indonesia external trade to European Union. Furthermore, we observe and review one of main commodities of Indonesia export to European Union. As the result of the research, we find out that the main product of Indonesia export product to European Union is Animal and vegetable fats, oils, cleavage and waxes (Section 3) which constantly has the largest share value of total Indonesia export, followed by Machinery product (Section 16). On the other hand, Machinery (section 16), Chemicals (section 6) and Vehicles (section 17) were the main import product from European Union to Indonesia. In trade relationship between Indonesia and European Union, Germany is the main gateway country both for Indonesia export product and Indonesia import product. Next, we focus on Palm oil product as a part of section 3 which is booming and its market share continuously increase, defeat Malaysia position in the global market. Indonesia government makes Masterplan Acceleration and Expansion of Indonesia Economic Development (MP3EI) as a policy to support Indonesia natural and human resources utilization, including in palm oil product through Regulation, Connectivity (infrastructure) and Human resources and science & technology.