DAMPAK IMPLEMENTASI ENVIRONMENTAL GOODS (EGs) LIST TERHADAP KINERJA PERDAGANGAN INDONESIA

Preparation of Environmental Goods list (EGs) and its implementation plan in international trade among APEC members will have impact on trade flows to the economics of its member, including Indonesia. This analysis aims to determine the potential impact that will be faced by Indonesia's trade performance. This analysis used a Gravity model on 54 EGs products with GDP, value of imports, the distance and tariffs as variable. The analysis showed that GDP, value of imports and tariffs significantly affect Indonesian exports and imports, while distance has no significant effect either on export or import of Indonesia. Of the 48 products which can be processed, 38 products EGS will impact to increase Indonesia's imports better rather than other APEC member, which in turn will lead trade balance into deficit. 10 products, providing the possibility of increasing Indonesian exports to APEC. Overall, EGS product is manufactured products produced by developed countries, so the elimination of tariffs provide less incentive for domestic producers to increase production to meet domestic and foreign demand. Indonesia should have initiative to create and strengthen domestic industries that are environmentally friendly, facilitating investment, deregulation of the domestic private sector to build and increase productivity