Dampak Penurunan Tarif Impor, Investasi dan Relokasi Industri Ban Terhadap Perdagangan Karet Alam dan Ban Indonesia di Pasar Dunia

This study aims to analyze the impact of the reduction in import tariff on natural rubber and tires, increase investment and relocate of tire industry from the USA, Japan, China to Indonesia to trade in natural rubber and Indonesian tires. The analysis of the Indonesian natural rubber and tires trade used simultaneous equation system models. Trade deregulation through a reduction in tire import tariff had increased Indonesia's natural rubber exports to Japanese and Chinese markets, which has encouraged to increase Indonesian tire production. However, this policy had unfavorable impact on Thailand and Malaysia's natural rubber exports. The combination of the reduction in tire import tariff and the tariff for importing Chinese natural rubber had an unfavorable impact on the production and export of Indonesian natural rubber to the Chinese market and had a weak impact on the natural rubber prices of domestic farmers.Furthermore, increased investment and relocation of the tire industry from the USA, Japan, China to Indonesia had increased Indonesian tire production and exports, domestic consumption of natural rubber, production and prices of natural rubber at the level of domestic farmers. A positive change in the trade balance also occurred when the increasing investment and relocation of the tire industry to the domestic market grew. This study recommended the government and industrial association to conduct industrial lobbying to big tire-industry players particularly in East Asia and USA under PTA and FTA Framework.