FASILITAS BEBAS BEA MASUK BAGI LEAST DEVELOPED COUNTRIES DAN MANFAATNYA BAGI INDONESIA

This study is conducted to investigate the benefits of the duty-free facility for the Least Developed Countries (LDC) as receivers and the benefits for Indonesia as a donor. The methods of analysis used in this study are Trade Specialization Index, Index of Intra Industry Trade, Differential Test and General Equilibrium Model of GTAP. The study found that the duty-free facility is not detrimental to the national industry and as an alternative source of obtaining raw materials. It will be stronger if Indonesia utilizing the flexibility as developing country with no obligation to remove all import duties charged to LDC countries. However, in practice, such kind of facilitation should be followed by the application of strict certificate of origin to minimize the possibility of smuggling from countries other than the members of the LDC.