Journal of World Trade Studies

Raw Material as Indonesia’s Diplomatic Power in International Trade Towards the EU Case Study: Nickel Ban Policy

Ade Meirizal, Cindy Juliana, Dinda julia Putri — Thu, 07 Sep 2023 15:16:19 +0700

Based on the amendment to Law Number 3 of 2020, Indonesian authorities decided to launch a nickel ban policy on several countries, including the EU, at the beginning of 2021. Authorities claimed that the nickel ban policy can stimulate job creation at the domestic level, bring economic value and improve industry complexity in Indonesia. The EU assumes that nickel export restrictions implemented by Indonesia affect the vital industries in the EU, especially the stainless steel and battery industries. The EU took action to bring this case to the WTO Dispute Settlement Body (DSB). This paper analyzes how important raw materials can be utilized to achieve Indonesian national interest using a qualitative method, adding to the discussion of relations between power and interdependence in global trade, how power can apply in the dynamics of the Indonesian nickel ban policy, and bringing achievement in terms of Indonesia's national interest. The power game utilized by Indonesia is also analyzed in facing a major global economic power. Finally, this paper will examine raw materials (nickel matte) as a diplomatic power in the global market and how its policies bring instability to industries in the EU.

How Can Renting Accommodation Contribute To The Circular Economy?

Azis Musthofa, R. Rijanta — Wed, 01 Nov 2023 09:28:19 +0700

Yogyakarta is a tourist destination with various attractions and tourist attractions objects. The high number of tourists has consequences for providing facilities such as accommodation, restaurants, travel agents, and various other supplies. Developments in technology and information have led to changes in people's consumption patterns. The emergence of various platforms that support various economic activities has contributed to the tourism sector in Yogyakarta. Airbnb is a platform that has increased the utilization of home assets, either partially or entirely, for rent to those in need. Every peak month, the need for large rooms in Yogyakarta has occupied almost all tourist accommodation rooms. This condition is an opportunity for sharing economy actors. This study aims to discuss to what extent renting out a place to live contributes to a circular economy. Literature study and secondary data analysis are used to explain this phenomenon. The activities of various dwellings in the sharing economy aim to increase the utilization of unused assets by renting them out to the needy. This concept supports the goals of a circular economy because previously unused home assets can be optimized using the platform. Although Airbnb has yet to be able to make a significant contribution to meeting the needs of tourist accommodation rooms in Yogyakarta, its various advantages have been able to meet the needs of tourists with specific preferences.

Telescoping Circular Economy Awareness from the Perspectives of Fast Fashion Consumers and Local Policy in East Kalimantan

Annisa Kirana Andaneswari — Tue, 28 Nov 2023 14:03:36 +0700

Along with sustainability paradigms revolve among the global society, Circular Economy (CE) appears as a new economic model that is compatible with this paradigm. Globally, there have been numerous research related to Circular Economy, including replacing fast fashion with circular fashion. The fashion sector was responsible for approximately 2.1 billion metric tons of Green House Gas (GHG) emissions, amounting about 4% of the global total. Emissions are exacerbated by fast fashion due to the make-take-dispose system implemented at a rapid pace. Unfortunately, the issue of fast fashion remains underdeveloped, especially in the local context. This paper examines Circular Economy awareness from fast fashion consumers and local policy In East Kalimantan to provide a picture of the local context. The authors used open questionnaires to collect responses from fast fashion consumers and stores (H&M, Matahari, and Uniqlo) relating to the dimensions of the Circular Economy. To capture the local policy context, this research uses policy content analysis from the National Medium Term Development Plan (RJPMN 2020-2024) to the Regional Medium Term Development Plan (RJPMD) and its derivative regulations in East Kalimantan. This study found that there is a lack of awareness by fast fashion consumers, which can be seen from the reluctance of customers and stores adapting to CE dimensions. Circular economy has been internalized through national development planning harmonized regulation at the local level. East Kalimantan Development Planning emphasized more on economic growth by generating a creative economy instead of transforming the linear economy into a Circular Economy.

The Positive Impact of US-China Trade War on Global South's Position in the Global Value Chain

Alfin Febrian Basundoro, Muhammad Irsyad Abrar, Trystanto Sanjaya — Tue, 28 Nov 2023 13:59:25 +0700

Amid the US-China trade war, several US companies have relocated back to the US, while China turned its industry inward to become more self-sufficient. This unpleasant development created a risk for Global South’s position in the Global Value Chain (GVC), especially in countries with manufacturing industries that can only assemble products. However, throughout the last decade, the position of the Global South within the GVC has been strengthening. In 2016, the Global South produced more than 47% of global manufacturing exports. However, the US-China trade war has threatened the delicate process and connection of the GVC. The interference of American and Chinese governments in international trade has forced many companies in taking measures to reduce their exposure to political risk. Additionally, an increasing number of American companies are reconsidering their decision to invest in the Chinese market and diversifying their investment to the Global South. This paper argues that the trade war could provide opportunities for Global South countries, particularly Southeast and South Asian countries represented by India. These opportunities include broader employment access for the youth, robust industrial-based innovation, and rapid economic growth, leading to a higher national income and life quality improvements.