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Implementation Of Indonesia Japan Economic Partnership Agreement: A Comparison Of User Specific Duty Free Scheme And Manufacturing Industrial Development Center Programs
[Full Text]
AUTHOR(S)
Tirta Nugraha Mursitama, Noerlina, Anastasia Sabrina
KEYWORDS
MIDEC, USDFS, Issue Linkage, Tactical Linkage, Industry, Driven Sector.
ABSTRACT
This study discusses the benefits from the USDFS (User Specific Duty Free Scheme) and MIDEC (Manufacturing Industrial Development Center) programs in the IJEPA (Indonesia Japan Economic Partnership Agreement) framework in 2008-2012 seen with a tactical linkage approach in issue linkage to the objectives of Indonesia's interests (increasing industrial competitiveness related to the value of production through the MIDEC program) and Japan (cheap imported raw materials to strengthen the automotive industry in Indonesia primarily through special tariff acceleration 4 driven sectors (automotive, electric and electronics, heavy equipment and energy) in USDFS program. The tactical linkage approach to linkage issues is an easy way to increase pay-offs, its increase benefit of cooperation since the issues not inherently connected. Costs that are sacrificed from a realm of issues to benefit for the purpose of other issues do not matter as long as the actor gain benefit from the objectives of their interests. The results of the research show that Indonesia gain benefit from technical assistance and Japan receives imports of cheap raw materials for heavy equipment and automotive.
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