ABSTRACT
This chapter illustrates the stages of designing trade policies over the last 50 years, from 1965 to 2015. It observes trade policy instruments in the new world trade, which are mainly non-tariff measures, in Indonesia. Indonesia's international trade has undergone many transformations over the last 50 years. Changes in its growth and structure have reflected changes in the country's comparative advantages and trade and development policies, as well as fluctuated global circumstances and the evolving rules of the multilateral, regional, and bilateral trade agreements in which Indonesia has participated. The growth of the share of Indonesia's trade to total gross domestic product (GDP) averaged -1.3 percent from 2000 to 2015. During 2012-2014, in the wake of the Global Financial Crisis and the collapse of commodity prices, exports declined and created a trade deficit. Trade and other policies were introduced to foster import substitution in rice and in manufacturing, beginning with consumer goods and followed by intermediate and capital goods.
