Technical Assistance II
Indonesia's commitment to supporting SMEs in meeting compliance requirements and ensuring the acceptability of Indonesian export products in foreign markets has been further realised with the development of a framework to proactively monitor and address Non-Tariff Barriers (NTBs) faced by Indonesian companies when trading with foreign counterparts. Developed by the Ministry of Trade, in partnership with ARISE+ Indonesia, this newly established monitoring system is designed to alleviate the information burden on Indonesian traders, ensuring they can maintain their trade potential. This initiative marks an important step towards enabling Indonesian exporters to fully capitalise on the opportunities presented by the global market.
Non-Tariff Measures (NTMs), particularly NTBs, pose significant challenges to exporters, affecting their market access and competitiveness. The complexity and difficulty in obtaining information and complying with NTMs can significantly hinder traders. Among Indonesia's trade partners, the European Union (EU) stands out with its extensive use of NTMs, covering 90% of all imports in terms of both product lines and trade value. Similarly, Australia, the United States, and Japan exhibit high NTM coverage ratios and frequency indexes, at approximately 77% and 61%, respectively.
The NTMs monitoring system was presented through a pilot project demonstration that utilises the tool to address NTBs in a selected market. The presentation took place during a workshop on 7 May 2024 in Bandung, bringing together trade analysts, negotiators from the Ministry of Trade, and trade attachés from Indonesian embassies and Indonesian Trade Promotion Centres (ITPCs) worldwide. ARISE+ Indonesia International Trade Law Experts, Pablo Quilles and Loan Lee, from the International Economic Consulting, led the workshop session to equip the participants with the skills needed to excel in data research and analysis.
Opening the event, Wijayanto, Director for WTO Negotiation under the Directorate General of International Trade Negotiation at the Ministry of Trade, highlighted the significance of this new tool in navigating the complex landscape of NTMs. He also noted the existence of a similar system, INATRIMS, and ongoing efforts to develop another at the FTA center, stressing the importance of integrating these initiatives to avoid duplication and ensure a cohesive approach.
"This new framework is a testament to our commitment to supporting Indonesian exporters. By providing detailed and up-to-date information on technical regulations and quality standards in export markets, we can better equip our traders to meet the stringent requirements of international markets. It is crucial that our efforts are complementary and integrated within a single system to maximise efficiency and impact," said Mr Wijayanto.
Rizki Utami, a Junior Expert Trade Negotiator at the Directorate of WTO Negotiations, Ministry of Trade, expressed her appreciation for the cooperation between the Ministry of Trade and ARISE+ Indonesia. She highlighted that the NTM monitoring framework and the provided capacity-building in analysing trade barriers significantly aid and facilitate her daily tasks.
"The newly established monitoring framework makes it very easy for us to find data and conduct analyses that will be used to develop the Policy Review Mechanism," Rizki said.
Belinda, a Junior Trade Negotiator from the Directorate of WTO Negotiations, and Zoefriyani, an Associate Trade Negotiator from the Directorate of ASEAN Negotiations, shared similar sentiments, emphasising the framework's ease and practicality for monitoring NTMs from trading partner countries.a
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