DAYA SAING, KINERJA PERDAGANGAN, DAN DAMPAK LIBERALISASI PRODUK KEHUTANAN

Since 2007 the forestry product has been liberalized, but its trading performance has not improved yet. From 127 product tariff lines fostered by the Ministry of Forestry, there are only 34 lines which gained trade surplus and 62 lines which experienced trade deficit. Out of 62 products tariff lines which experienced trade deficit, 13 products are raw materials which are widely used by forest industry. Based on the Intra-Industry Trade and Trade Specialization Indexes, as well as simulation results using the GTAP GMig 2, forestry product with high competitiveness is Pulp of Wood, far above the competitiveness of Paper and Paper Board and Woods and Articles of Wood. The limited availability of raw materials is the main cause of Indonesia's failure to take advantage of trade liberalization. The 34 product tariff lines which experienced surpluses should remain liberalized and become the main export products. Although experiencing deficits, the 13 product tariff lines which are the main raw materials for the industrial sector should be continually liberalized, while the remaining 49 product tariff lines which are not key raw materials should be provided with trade remedies and they should be considered as sensitive products.