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Journal: Buletin Ilmiah Litbang Perdagangan (Vol.12, No. 2)

Publication Date:

Authors : ; ;

Page : 135-160

Keywords : Export Product Dynamic (EPD); Intra-Industry Trade (IIT); Inter-Regional Input-Output (IRIO); Asia-Pacific Economic Cooperation (APEC); Free Trade Area of The Asia-Pacific (FTAAP;

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This paper examines the potential improvement of market access of Indonesian products to the Asia-Pacific Economic Cooperation (APEC) region to anticipate the possibility of the Free Trade Area of The Asia-Pacific (FTAAP) realization. The methods used in this research are Export Product Dynamic (EPD), Intra-Industry Trade (IIT), and Inter-Regional Input-Output (IRIO) analysis. Based on the analysis of EPD using 21 sectors classification, it was obtained 15 export sectors of Indonesia to Asia-Pacific market are in retreat position and other six sectors are in falling star position. While using the IIT method, there are five Indonesian export sectors that have very strong integration, namely and animal sector, food and tobacco processing industry, pharmaceutical industry, rubber and plastics industry, and computer docking industry. In addition, by using IRIO analysis on 10 Asia-Pacific economies, it showed that the largest share of Indonesia bilateral trade was to China and Japan at about 1.22% respectively. This was followed by South Korea and Taiwan with percentage of 0.4% and 0.32%. The exports of Indonesia to Australia, China, Japan, South Korea, Mexico, Russia and Taiwan were dominated by the intermediate goods, while to the United States and Canada are dominated by final goods. Therefore, to obtain added value, Indonesia's has to improve competitiveness with technology transfer and market access increase which focuses on the final demand.

Last modified: 2020-08-13 15:49:33