The adoption of general regulation 1/2014 and the influence of world systems on metal ore trade relations between Indonesia and its core country trade partners = Penerapan peraturan pemerintah 1/2014 serta pengaruh sistem dunia pada perdagangan bijih metal Indonesia dan partner dagang utamanya

Irman, Mel Salim (2015) The adoption of general regulation 1/2014 and the influence of world systems on metal ore trade relations between Indonesia and its core country trade partners = Penerapan peraturan pemerintah 1/2014 serta pengaruh sistem dunia pada perdagangan bijih metal Indonesia dan partner dagang utamanya. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

For semi-periphery countries such as Indonesia, industrial capabilities are an important aspect of development. Constitutionally, Indonesia must provide the maximum benefits of its national resources to its people. As a semi-periphery country lacking some industrial refining capabilities, Indonesia is unable to. Instead it often relies on exporting commodities in their raw or semi-refined forms instead of refined value added forms. This has especially been true in the case of metal ores. To address this issue, the Indonesian government sought to develop downstream capabilities in two ways. Firstly, it restricted exports of metal ores and concentrates that had not been smelted by implementing export taxes via the regulation GR-1/2014. Secondly, it pressured MNCs into investing in the development of smelting capabilities by discontinuing their export licenses until an agreement to invest in smelters was made. In doing so, they would export the metals in their smelted forms out of Indonesia, retaining more value domestically. This had been met with resistance from both MNCs and core countries. This thesis chose to focus on two core countries: Japan and the U.S. U.S. based MNCs and Japan had been resistant to the regulation. Ultimately however, they dropped their initial threat to pursue international arbitration, and are currently investing in smelters. This thesis sought to use a descriptive method to show past trade patterns in mineral ores as well as trade patterns after the implementation of GR-1/2014. Particularly, it sought to discern whether a natural resource curse would be prevented using GR-1/2014. Data had been collected through journals, newspaper articles and websites, and information on the theories had been collected through books. This thesis used anti-globalization theory and to a limited extent world systems analysis. As hypothesized, the volume of exports of commodities that have not undergone smelting, such as ores and concentrates, reduced after the implementation of GR-1/2014. Indonesia has been determined to be somewhat dependent on raw material exports. Smelting development has shown mixed progress, with iron, copper and nickel products showing some growth. Bronze and gold however only show relative growth. Losses in the short run are meant to be offset by gains in the long run.

Item Type: Thesis (Bachelor)
Creators:
CreatorsNIMEmail
Irman, Mel SalimUNSPECIFIEDUNSPECIFIED
Contributors:
ContributionContributorsNIDN/NIDKEmail
Thesis advisorPratikno, Roy VincentiusUNSPECIFIEDUNSPECIFIED
Uncontrolled Keywords: global value chains; core countries; semi-periphery countries; anti-globalization; Indonesia; Japan; United States; downstream industrial development; export tax; global value chain
Subjects: J Political Science > JZ International relations
Divisions: University Subject > Current > Faculty/School - UPH Karawaci > Faculty of Social and Political Science > International Relations
Current > Faculty/School - UPH Karawaci > Faculty of Social and Political Science > International Relations
Depositing User: Ms Meliza Faomasi Laoli
Date Deposited: 04 Oct 2018 06:54
Last Modified: 09 Dec 2019 07:31
URI: http://repository.uph.edu/id/eprint/851

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