Are We Ready?

President Jokowi's announcement that Indonesia will join the US-led 12-nation Trans Pacific Partnership (TPP) free trade zone is causing quite a stir. The previous administration's efforts to join the ASEAN Economic Community (AEC), which opens up trade, investment and people flow among ASEAN member states, attracted considerable stiff resistance. This time the stakes are higher, as it puts the country even further on a market-opening path. The issue is that in joining the TPP, as with the AEC, requires significant support from key political, government and business stakeholders to be effective and show results.

This support is critical when changes need to be done by member countries to fulfill TPP's tough terms and when the results will only be felt over a period of time. Not properly addressing these fears and doubts could undermine the initiative and, in a worst case scenario, could even reverse the gradual opening of Indonesia's economic doors.

November 3, 2015