Policy Brief:
Analisa Target Peningkatan Nilai Perdagangan Dua Arah Indonesia dengan Selandia Baru Senilai NZD 4 Miliar

Executive Summary:

At the 8th Joint Ministerial Commission (JMC) in Jakarta on 5 October 2018, the Governments of Indonesia and New Zealand agreed to increase mutually beneficial trade to achieve the two-way trade value target of NZD 4 billion (equivalent to USD 2.71 billion) by 2024. Currently, the total trade between Indonesia and New Zealand in 2020 was recorded at USD 1.24 billion. For that matter to achieve the total trade target commitment in 2024 an increase of USD 1.47 billion or 118% is needed in four years or an average of 22, 03% per annum. The business-as-usual approach is seen as insufficient to meet the commitments of the two countries' trade targets in 2024. Trade liberalization through the abolition and reduction of import duty tariffs through the AANZ-FTA has also not had a significant impact on increasing the total trade between Indonesia and New Zealand. In the implementation, the reduction or elimination of tariff barriers through various trade agreements is not followed by the reduction or elimination of various non-tariff measures (NTMs).

This policy brief was prepared to identify export constraints by taking samples of fresh fruit exports and efforts to overcome them. Furthermore, the author also makes efforts to synchronize the mismatch of Indonesia's export products to New Zealand by mapping Indonesian products that have competitiveness and are in high demand in the New Zealand market but whose value is not yet dominant. Some of the recommendations resulting from this policy brief include implementing trade cooperation with a powerhouse mechanism to optimize the advantages of RI and SB to contribute to the global supply chain; increasing exports of RI products that are competitive and have high demand in the SB market; optimizing market intelligence to market commodities that meet these criteria to open new markets; pushing for bilateral tariff and non-tariff liberalization agreements with SB; as well as efforts to deal with Indonesia's fresh fruit export constraints to SB such as by increasing on farm and off farm, applying for the application of the irradiation process as a substitute for fumigation through Methyl Bromide can be implemented, establishing irradiation centers integrated with export supporting infrastructure, promoting investment for irradiation facilities, and development of inter-country flight interconnectivity so that exports of fresh fruit run smoothly.

Keywords: Non-tariff measures, Indonesia-New Zealand exports, irradiation.