International Political Economy Case Study

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International Political Economy (IPE) is social science field of study that attempts to understand international and global problems using an eclectic interdisciplinary array of analytical tools and theoretical perspectives. There are major actor in International Political Economy such as : 1. States : OECD members, G-20, BRIC 2. International organization : WTO, WEF 3. Multinational companies (MNCs) : energy (such as “seven sisters”), technology, consumer goods, etc. 4. International monetary order : IMF, World Bank, ADB, IDB, AIIB 5. Regional organization : ASEAN, NATO, Arab League, MERCOSUR, SADC Indonesia as one of the state actors in International Political Economy, Indonesia plays an important role in the International Political Economt.…show more content…
Second, Indonesia needs to continue to push global energy market transparency especially fossil energy issues. Third, encourage financing of infrastructure becomes a major part in the global development strategy, "said Syurkani. Issues above we can conclude that Indonesia should be more actively plunge into the international economy and further develop the infrastructure in Indonesia. There are some economic benefits in the can by Indonesia to enter into the G20 include: 1. Indonesia is a new member of the Financial Stability Forum (FSF), which is the standard setting body for financial system 2. Indonesia get deferred Drawdown Option (DDO) of the World Bank, ADB, Japan and Australia for poverty alleviation programs and infrastructure that became the model GESF 3. G-20 which is the largest shareholder in the ADB is committed to increase capital ADB to encourage development of the…show more content…
Because consumers in Indonesia are following the flow of the times. Bargaining power in Indonesia is less good because of infrastructure in Indonesia is also not support, Indonesia could actually increase the bargaining power in the economic sector by way of a partnership with the Asia Pacific region. Prior to establish cooperation with other countries should the government issued a policy to attract investors so willing to invest their shares in Indonesia. Actually, the government has had a policy Free and active means freeing the international market to enter into a trade in Indonesia. The policy that Regulate the foreign investment is the constitution number 25 year 2007. It says that every foreign investment would have to base on Indonesian law. By using foreign investment, there are several benefits which can be gotten by Indonesia in economic aspect. Those are: 1. The influx of new capital for development 2. Add to the country's foreign exchange 3. Establishment of new firms so that any income for the country in the form of income tax 4. Absorption of labor 5. Experienced in

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