Modification of the Regulatory Impact Assessment (RIA) on Indonesia's trade, investment, and industrial incentive policies

Kiki Verico

MPRA Paper from University Library of Munich, Germany

Abstract: This paper modifies the Regulatory Impact Assessment (RIA) method and applies it on Indonesia's trade, investment, and industrial incentive policies. First, it analyses the Indonesian Bilateral Trade Agreements (BTAs) utilizing trade and investment agreement. Indonesia currently has two BTAs in force. One, Indonesia – Japan Economic Partnership Agreement (IJEPA) and two, Indonesia – Pakistan Preferential Trade Agreement (IP-PTA). This paper found that the outcome expectation for trading partner depends on its GNI per capita. If the trading partner has GNI per capita higher than Indonesia’s then the highest expected outcome would be on the increasing FDI inflows from the trading partner. If its GNI per capita is lower than Indonesia's, then the highest foreseeable result would be on the rising net trade balance of Indonesia. Second, industrial sector incentive analysis by comparing RIA scores on all possible incentive policies. In this paper, the modified RIA found that firms prefer supply-side incentives such as government support on the Research and Development, patent and copyright protection than fiscal incentives such as the import duty-free or tariff rate protection.

Keywords: Regulatory Impact Assessment; Public economics; Bilateral Trade Agreements; trade & investment; industrial incentive; RND & Innovation, Legal Institution, Indonesia (search for similar items in EconPapers)
JEL-codes: F14 K23 O24 O30 P35 P45 P48 (search for similar items in EconPapers)
Date: 2018-06-01, Revised 2018-07-01
New Economics Papers: this item is included in nep-int, nep-law and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Journal of Economics and Finance in Indonesia (EFI) 1.64(2018): pp. 43-58

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