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Non-Tariff Trade Regulations in Indonesia: Nominal and Effective Rates of Protection

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  • Stephen V. Marks

Abstract

Non-tariff regulations on imports and exports have spread in Indonesia since 2011. I report findings of a study of many of these regulations, in which a variety of methods were used to estimate the associated nominal rates of protection. These findings were then used to estimate effective rates of protection (ERPs) across 140 tradable-goods sectors in the Indonesian economy in early 2015, taking into account also the effects of the most-favoured-nation and preferential-import tariff schedules, anti-dumping and safeguard duties, export levies, duty drawbacks and exemptions, domestic sub-sidies, and excise taxes. I find that the magnitude and dispersion of ERPs were higher in 2015 than in early 2008, for which a similar study was previously conducted, and that much of the variability was related to quantitative trade restrictions. In particular, the regulations examined boosted a measure of the cost of living by 7.6% in 2015, compared with 2.5% in 2008.

Suggested Citation

  • Stephen V. Marks, 2017. "Non-Tariff Trade Regulations in Indonesia: Nominal and Effective Rates of Protection," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 53(3), pages 333-357, September.
    • Handle: RePEc:taf:bindes:v:53:y:2017:i:3:p:333-357
    DOI: 10.1080/00074918.2017.1298721
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    Cited by:

    1. Rick Van der Ploeg & Fidel Perez-Sebastian & Ohad Raveh, 2019. "Oil Discoveries and Protectionism," Economics Series Working Papers 895, University of Oxford, Department of Economics.
    2. Arief Anshory Yusuf & Peter Warr, 2018. "Anti-globalisation, poverty and inequality in Indonesia," Departmental Working Papers 2018-03, The Australian National University, Arndt-Corden Department of Economics.
    3. Febrio Kacaribu & Alvin Ulido Lumbanraja & Mohamad Dian Revindo & Syahda Sabrina & Zehan Pricilia & Yeremia Natanael, 2018. "Recent Developments in Indonesia’s Macro-economy and Trade, Q1-2018," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 1-24, Juni.
    4. Perez-Sebastian, Fidel & Raveh, Ohad & van der Ploeg, Frederick, 2021. "Oil discoveries and protectionism: Role of news effects," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    5. Hal Hill & Jayant Menon, 2021. "Trade policy in Indonesia and Thailand," The World Economy, Wiley Blackwell, vol. 44(12), pages 3492-3506, December.
    6. World Bank, 2018. "Indonesia Economic Quarterly, December 2018," World Bank Publications - Reports 30969, The World Bank Group.
    7. International Monetary Fund, 2018. "Indonesia: Selected Issues," IMF Staff Country Reports 2018/033, International Monetary Fund.
    8. Kiki Verico, 2021. "What has been happening to Indonesia’s Manufacturing Industry?," LPEM FEBUI Working Papers 202158, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2021.

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