Expecting the Wake of Export-Oriented Investment from Free Trade Deals

investment magnet
Summary

  • Indonesia is eyeing dozens of free trade agreements with Asian, European, and African countries, hoping to spur exports and investment, particularly export-oriented investments. In the past decade, the country saw incoming investment rose 288 percent, but the exports lagged by only a 6.2 percent growth.
  • The government has just signed the Regional Comprehensive Economic Partnership (RCEP), a mega-trade agreement covering trade in goods, services, and investment. The impact on the country's economy, however, might not be significant. China will likely enjoy the most major benefits from it.
  • Economists warned that several free trade agreements that have been signed have no implications for boosting export-oriented investment, following an unsupportive business climate, oligarchy, and corruption.

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