The Process in Making Movie for IPE Project

We are chosen to make a video about "Food Security in Indonesia" and how import affects Indonesia's food security. In this video, we collect the information from two different sources. The interviewees are Mr. Taufan Akib from BULOG as Kabag Humaslem, Mr. Ronald J. Silalahi from The Ministry of Trade as Kepala Seksi Pd Subdit Barang Pertanian, Kehutanan, Perikanan dan Kelautan and also his colleague, Mr. Eka Purnama as Staf Subdit Barang Pertanian, Kehutanan, Perikanan dan Kelautan.

From their point of view about food import and food security in Indonesia, we can conclude that Indonesia has the potential to increase the quality of food production without having to ban import because even if import has a lot of negative impact on Indonesia's food security, we cannot deny that Indonesia still need to import, because we believe that import still has an important role in Indonesia.

And in order to prevent food shortage or food crisis, Indonesia needs to develop their production in rice so that we will have the ability to supply rice ourselves without having to depend on other countries.

At Ministry of Trade with Mr. Ronald J. Silalahi and Mr. Eka Purnama

At BULOG with Mr. Taufan Akib

From our video we hope that people will be informed about the condition of food security in Indonesia by viewing from the experts' point of view which are from BULOG and Ministry of Trade. And here we also hope that the related institution can consider more in making policies about food security in Indonesia by watching our video.

Our video can be found at: http://youtu.be/vEKUmS_azkU
 
Group One's Member:

Alvin Ernesto - 1701350380
Yohana Sarah Mukti K - 1701349933
Dewi Mulyasari - 1701345645
Yusuf Mukhlisin - 1701345430
Hardiyanto Gunawan - 1701327144
Gusti Putri Dewi - 170132534
Frisca Omega Kaligis - 1701351894

Is Free Trade Fair ?

Free trade refers to a general openness to exchange goods and information between and among nations with few-to-no barriers-to-trade. Fair trade refers to exchanges, the terms of which meet the demands of justice. Proponents of fair trade argue that exchanges between developed nations and lesser developed countries (LDCs) occur along uneven terms, and should be made more equitable. The Fair Trade Federation's Annual Report describes the fair trade movement as "a global network of producers, traders, marketers, advocates and consumers focused on building equitable trading relationships between consumers and the world's most economically disadvantaged artisans and farmers.

At the moment, trade rules are stacked in favour of rich countries. Rich countries want to keep protecting a few sectors in their own countries, such as their farmers, while using international trade talks to prise open poor countries' markets.
In return, poor countries want to protect their vulnerable sectors and promote new industries - but are being prevented from doing so.
By locking in essentially irreversible 'free trade' policies, rich countries and big business are set to bring misery to millions of poor people.

Read more at http://www.actionaid.org.uk/trade/free-trade#1QiCSuaCSQeXF7hg.99

At the moment, trade rules are stacked in favour of rich countries. Rich countries want to keep protecting a few sectors in their own countries, such as their farmers, while using international trade talks to prise open poor countries' markets.
In return, poor countries want to protect their vulnerable sectors and promote new industries - but are being prevented from doing so.
By locking in essentially irreversible 'free trade' policies, rich countries and big business are set to bring misery to millions of poor people.

Read more at http://www.actionaid.org.uk/trade/free-trade#1QiCSuaCSQeXF7hg.99

At the moment, trade rules are stacked in favour of rich countries. Rich countries want to keep protecting a few sectors in their own countries, such as their farmers, while using international trade talks to prise open door countries markets. In return, poor countries want to protect their vulnerable sectors and promote new industries - but are being prevented from doing so.

Some people think that developing countries should abandon free trade agreements because ree trade creates an equal business environment. By signing the agreement, countries will put their private sectors to compete with other countries’ private sectors in equal terms. For poorer countries, it means their private sectors – whom are relatively weaker – will compete against much stronger companies. The regulation may be equal, but the players capabilities are certainly not. The price for a free trade is more expensive than the benefit it brings. The practice of free trade agreements will undoubtingly give market access to much richer country.

Rich countries and business leaders says free trade is the best way out of poverty for developing countries. But there is little evidence to support this - in fact the opposite is true. Countries that have rapidly opened their markets to the free trade, such as Haiti, Nepal, Zambia, and Peru have very poor records on poverty reduction and economic growth. On the other hand, countries such as Taiwan and South Korea chose to protect their domestic industries rather than completely open their economies to global trade. And when they did choose to open up, they did it on their own terms and at their own speed. This is not only produced higher economic growth, but resulted in lower poverty and inequality


References :
https://www.dosomething.org/tipsandtools/free-trade-vs-fair-trade
http://www.globalenvision.org/library/15/834
http://www.open.edu/openlearn/society/international-development/international-studies/how-fair-free-trade
http://debatewise.org/debates/1053-poorer-countries-should-abandon-free-trade-agreements/
http://www.actionaid.org.uk/trade/free-trade

Created by :
HARDIYANTO GUNAWAN / 1701327144

Rich countries and business leaders say free trade is the best way out of poverty for developing countries. But there is little evidence to support this – in fact the opposite is true
Read more at http://www.actionaid.org.uk/trade/free-trade#1QiCSuaCSQeXF7hg.99

At the moment, trade rules are stacked in favour of rich countries. Rich countries want to keep protecting a few sectors in their own countries, such as their farmers, while using international trade talks to prise open poor countries' markets.
In return, poor countries want to protect their vulnerable sectors and promote new industries - but are being prevented from doing so.
By locking in essentially irreversible 'free trade' policies, rich countries and big business are set to bring misery to millions of poor people.

Read more at http://www.actionaid.org.uk/trade/free-trade#1QiCSuaCSQeXF7hg.99

At the moment, trade rules are stacked in favour of rich countries. Rich countries want to keep protecting a few sectors in their own countries, such as their farmers, while using international trade talks to prise open poor countries' markets.
In return, poor countries want to protect their vulnerable sectors and promote new industries - but are being prevented from doing so.
By locking in essentially irreversible 'free trade' policies, rich countries and big business are set to bring misery to millions of poor people.

Read more at http://www.actionaid.org.uk/trade/free-trade#1QiCSuaCSQeXF7hg.99

What Need to be Prepared by Indonesia to Face Free Trade

Free trade, there is no doubt that it has so many benefit for many countries, but we cannot ignore that it also have so many negative side that can harm a country. as i already mentioned earlier in my previous article about free trade that needed in Indonesia, so it can improve and strengthen indonesia's economics. but indonesia also have to tighten or restrict its import policies in order to prevent bombardment by import stuff from other nation. but as matter of fact, strengthen its import policies is not the only thing indonesia have to worry about. specifically, they still have so many thing to be on the lookout, such as: import policies, local companies, illegal trade, and do not forget to mention culture. Each of those things are the things that will touched by the effect of the free trade.

With the market are so open and free, every single cuntry have the right to do export and import. but indonesia have to be careful with  the import. If they are not. the number of the import will be too high even overcome the number of export. and it will damage the economics growth in Indonesia. So to prevent that, it is important to restrict the rules or the policies about import. The other impact that caused by free trade is, there will be a lot of foreign companies and foreign stuff that come to indonesia. And obviously, it's gonna impact our local companies.

The income of our local companies will decreased, the price will get more expensive. It is because most of indonesia's citizen, like foreign bramds more than they love local brands. So, our local companies need to improve their production quality to attract local consumer. One of the most dangerous impact of free trade is the illegal trade. many people take advantage of the free market to do some illegal trade, like the illegal selling of animal. for example tiger. it is happens usually at africa also southeast Asia. Beside it will threaten the extinction of the wirldlife, it will also decrease the income of the country. To prevent this from happening, the government should protect the wildlife, by creating a sunctuary, and create a law about it.

The las thing that indonesia have to take a good care about is, the traditional culture. With so many foreign stuff enter the country, the people start to imitate the western culture. And the people become like a westerner. And over time, the citizens of Indonesia will forget about their own traditional culture. Whereas actually the traditional culture is original fron indonesia and it is important to protect and preserve it. Therefore, the government somehow have to built in the citizens' heart, a love for its own culture and nationalist feeling so they will protect and preserve it.

Yusuf Mukhlisin 

1701345430

:)

Globalization and International Trade

Globalization refers to the growing interdependence of countries resulting from the increasing integration of trade, finance,people, and ideas in one global marketplace. International trade and cross-border investment flows are the main element of this integration.

Globalization is driven by two main factors. The first one is, the advanced technology is causing the cost of transportation, communication, and computation has been lowered that it is often economically affordable for a firm to locate the phases of production from another countries. The other factor has to do with increasing liberalization of trade and capital markets: more and more governments are refusing to protect their economies from foreign competition or influence through import tariffs and nontariff barriers such import quotas, export restraint, and legal prohibitions. A number of international institutions established in the wake of world war II such as the World Bank, International Monetary Fund (IMF), and General Agreement on Tariffs and Trade (GATT) have played an important role in promoting free trade.

This process of economic development and growth around the world has inevitably been changing the patterns of trade and the comparative advantages of many of the nations that have been or are becoming to a greater extent America’s trading partners. Labor and manufacturing specializations that the United States has long been dependent on for employment, income, and profits are now shifting to other parts of the globe. Once peoples and markets on continents outside North America began to become relatively freer and less collectivist—though certainly not laissez faire, unfortunately—these changes in the structure of the international division of labor were inevitable.

But besides their inevitability, the changes also are opening healthy and desirable opportunities for hundreds of millions of people to finally raise themselves out of the poverty that has been the lot of mankind for all of human history. We should hail this as one of the greatest moments in the thousands of years of man’s time on this earth.

References:
http://www.lincs-chamber.co.uk/images/stories/InternationalTrade%20cloud.jpg
http://www.globalissues.org/issue/38/free-trade-and-globalization
http://www.worldbank.org/depweb/beyond/beyondco/beg_12.pdf
http://www.fee.org/the_freeman/detail/globalization-and-free-trade

Created By :
Hardiyanto Gunawan / 1701327144

Illegal Trade as The Impact of Free Trade

Illegal trade is business that is not in accordance with law, and the traded object is usually something that shouldn't be sold. Internet plays a role too in this case because of the easiness of getting information, illegal trade spreads rapidly and internet makes it goes worldwide. The organization who runs the business will have a lot of benefit because their business goes global and they will continue their business and even if someday they stop doing business, their customer will still search for them because of their own needs. This is getting harder when the government doesn’t know the differences between the illegal product and the legal one so that the illegal product can get into the country easily, this kind of thing is possible because of government and institution’s neglectfulness.

Some example of illegal trade that has been claimed as a ‘profitable international crime’:

Illegal wildlife trade (illegal animal trafficking) is one of the illegal trade which many country tend to do. Because the benefit of doing this kind of business can obtain profit to US $ 10 billion, the animal is usually taken from Africa and also Southeast Asia and the target of this business are the buyers in China for traditional medicine, Europe and United States for animal testing or animal experimentation. Their skin is taken for the bags, wallets and belt’s manufacture, because of this illegal trade, a lot of species are endangered.

 

Arms trafficking (illegal gun trafficking) also become the most common business in the reality of international life. There are two different kinds of arms trafficking: grey market and black market. Grey market is where the illegal transaction that has been made is known by the government but even it breaks the law, government will remain silent because it’s usually for the urgent need. And black market is beyond government’s knowledge, it’s entirely not under government’s control. The problem is when weapons/gun is abused by people who have a bad intention.

  

Human trafficking this one can be called as slavery in the modern era, because the object of this trade is human. This obtains profit to US $ 32 billion, and the people is usually being used for sexual slavery or forced labor. Human trafficking is basically selling people to people to do anything the buyers want from them. Most of those people are from Soviet Union, North Africa, India, Pakistan and China.  Human trafficking is the second most profitable criminal acts in the world.

That’s not all there are still illegal gold trafficking, human organs, oil, and drugs, there are so many kind of illegal trade that goes global. Illegal trade is one of the impact of free trade, because free trade brings the freedom of trading and free trade’s law is made to simplify the transaction from one country to another so the obstacle of delivering products or doing business with another country is unlikely. Illegal trade still happen till now although there’s law which has been made to prevent it, it’s probably because the profit that can be obtained from doing this business is so big and with the easiness to access the product, this business is not really a hard one to run.

References:

http://palingseru.com/5692/10-perdagangan-ilegal-paling-menguntungkan-di-dunia

http://nasibnatal.blogspot.com/2013/11/perdagangan-senjata-ilegal.html

http://www.satwa.net/307/obama-perangi-perdagangan-satwa-liar.html

Created by:

Yohana Sarah Mukti Kristanti / 1701349933

The Dark Side of International Trade

International trade has been helping countries around the world to explore and capitalize on their best natural resources as assets and sources of their national incomes. Moreover, many countries have gathered together and created organizations or institutions, such as NAFTA, ASEAN, WTO and many more, to build their markets, help the global economy and, more specifically, to benefit every country member involved in free trade. Thus, global free trade enables the increase of production for countries of their best selling commodities, encourages competition in the markets, allows the creation of innovations, and increases employment.

While there are positive aspects of international trade, there is also a darker side that is often overlooked, but also deals with the trade of both objects and people across international borders.

The trade of certain objects, such as drugs (e.g. cocaine and heroin) within international drug trafficking, is very dangerous and threatens the global economy. Asia, for example, is believed to be a center of drug trafficking for tons of heroin. This is especially true in Afghanistan where the drugs are mostly consumed and produced but also trafficked globally to the rest of the Middle East and European countries through routes in Afghanistan’s neighboring countries. The consumption of heroin all over the globe has increased since 2006, North America has the highest percentage of cocaine consumption as well as some of the EU countries. The biggest trade routes are typically from Colombia to Mexico and onwards or from South America in general.

It is difficult to combat drug trafficking as the network is worldwide and can not easily be tracked, but there is one big UN organization that has been created to overcome this sort of international trade, the UNODC.

Furthermore, the illegal international trade of people is as threatening as the trade of harmful and illegal objects, and perhaps more so as it violates human rights. Human trafficking has become the second most profitable industry after drug trafficking and the case of human trafficking keeps growing as time goes on, it not only happens to women and children, but also men. Though it can happen within a country, the rate of human trafficking internationally is even higher. There are many different forms of human trafficking, such as forced and cheap labor, sexual slavery, bride-buying, prostitution, child labor, organ harvesting, and so on and so forth. Human trafficking, in all of its forms, is very popular in Asia specifically countries like China, India, Bangladesh, Thailand, Indonesia, the Philippines, and some other Asian countries. According to International Labor Organizations, every year human trafficking generates around $32 billion USD and the structural factors of human trafficking are very complex; poverty, unemployment, discrimination against women, demands for commercial sex, and globalization.

However, countries and people around the world are trying to prevent these illegal activities from growing out even more by forming organizations. The impact is not only on individuals, but also on the global economy. According to UN data, the value of illegal trade around the world is estimated at $1.3 trillion USD and is constantly increasing.

It is evident that international trade has not only positive sides to help the development of countries and the world at whole, but also a complex dark side that people forget, or choose to ignore.

https://www.unodc.org/unodc/en/drug-trafficking/index.html

https://www.unodc.org/unodc/secured/wdr/wdr2013/Executive_summary.pdf

http://www.un.org/en/ga/president/66/Issues/drugs/drugs-crime.shtml

By : Dewi Mulyasari - 1701345645

Indonesia Need Free Trade

Free trade, it is one of the most popular policies advocated by economic liberals where there is no intervention from government because it will only lower or undermines efficiency and overall wealth.

It erase or remove protectionist measures that are designed to insulate domestic producers from international competition. which means it erase all the things that may hinder the mechanism of free trade such as tarrif, import quotas and taxes. Free trade is exemplified by the European Union / European Economic Area and the North American Free Trade Agreement, which have established open markets. Most nations are today members of the World Trade Organization (WTO) multilateral trade agreements. However, most governments still impose some protectionist policies that are intended to support local employment, such as applying tariffs to imports or subsidies to exports. Governments may also restrict free trade to limit exports of natural resources.

There are two big Figures in the history of free trade, Adam Smith and David Ricardo. Ricardo said that free trade is an international trading system where every nations are free to do trading without any intervention from country. he also thought that  A free trade policy should enable a nation to generate enough foreign currency to purchase the products or services that it does not produce indigenously. The process works best when there are few if any barriers to entry for such imports. The imposition of artificial constraints such as tariffs on imports or the provision of subsidies to exports will introduce distortions and impede free trade.

 As for Adam Smith, he came with a theory, the Invinsible hands Theory. In that theory, Adam Smith argued that in economic activity there is no need for government's intervention, and if each individuals are free to do the economic activity there will be a higher efficiency, and in time that efficiency will become a strong economic growth. well, Adam smith admitted that goverment have a role in a country's economics. But it only limited at  infrastructure supply & development and running the government's administration. if government interfere too much, it will only lower the economic efficiency. 

 Free trade is a win-win proposition because it enables nations to focus on their core competitive advantages, thereby maximizing economic output and fostering income growth for their citizens. Free trade enables nations to concentrate their efforts on manufacturing products or providing services where they have a distinct comparative advantage. that is why i said Indonesia need free trade, because it could improve the economic growth in Indonesia. however, putting those advantages and positive side of free trade aside, Indonesia also have to strengthen the rule about import or at least be more careful with it. why? it is to prevent a bombardment by import stuff from other country.

Yusuf Mukhlisin - 1701345430

refference:

http://nursukasri.blogspot.com/2012/10/free-trade.html

http://www.investopedia.com/terms/f/free-trade.asp

http://en.wikipedia.org/wiki/Free_trade

Introduction to Internatinal Politic economy, David N. Balaam, Bradford Dillman, Ffith edition