Trade Protectionism in Indonesia: Bad Times and Bad Policy

Abstract

This paper highlights the protectionist shift in Indonesia, and argue that this will harm Indonesia’s economic prospects. Key findings Despite increasing economic challenges, Indonesia is likely to continue raising non-tariff barriers to trade. These protectionist measures are likely to prove counterproductive, raising prices for Indonesian consumers and reducing the competitiveness of Indonesian firms. This trend toward protectionism enjoys broad political support in Jakarta, and is likely to continue under President Jokowi.

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