LIBERALISASI PERDAGANGAN SEKTOR JASA TRANSPORTASI UDARA ASEAN DAN ASEAN FTA PARTNERS: MODEL IC-IRTS CGE

Population growth, increased economic welfare, and Indonesia's unique geographical location increase the "tendency to travel by air transportation". Based on these conditions, air transport is a fundamental and efficient way to connect almost 240 million Indonesians, and people in other parts of the world. However, like other service sector, trade barriers in the air transportation service is implemented through government policies through regulations. This condition causes the regulations to be barriers because they increase transaction costs charged to consumers in the form of higher service prices. This study aims to (1) estimate the tax-equivalent of NTBs and (2) analyze the impact of eliminating regulatory barriers in the air transportation service within the scope of ASEAN and ASEAN FTA Partners. Using the gravity model, this study identifies that the trade barriers of air transportation services in ASEAN and ASEAN FTA Partners are still relatively high at between 0 - 11.2 percent. Using CGE's IC-IRTS model, GTAP simulation shows that the results of this study are consistent with pro-competitive theories. Greater gain is obtained from the CGE model, which uses the assumption of IC-IRTS compared to PC-CRTS. Assuming IC-IRTS, China will reap greater benefits as indicated by its highest increase in welfare.