20 May 2024 - Technical Assistance II
In a significant step forward for Indonesia's trade in services sector, the Directorate of Trade in Services, under the Directorate General of International Trade Negotiation at the Ministry of Trade, in partnership with ARISE+ Indonesia, has developed the Trade in Services Performance Monitoring Dashboard. This innovative tool is designed to enhance the government's ability to monitor the performance of Indonesia’s services sector, equipping negotiators with crucial insights into the trends and dynamics of various service industries. Drawing on a previous framework developed by the Ministry of Trade and ARISE+ Indonesia, this dashboard supports the identification of negotiation priorities and strategic decision-making in trade in services. By integrating comprehensive trade data with advanced analytical tools, this innovative dashboard promises to revolutionize how Indonesia navigates and enhances its service sector's performance on the global stage.
Understanding the composition and evolution of the services economy is vital for the Indonesian government to devise policies that align with emerging trends and to negotiate trade agreements effectively. The growing significance of the services sector is evident from its increasing contribution to the national economy. According to data, the share of services value-added as a percentage of Gross Domestic Product (GDP) rose from 33.4% in 2000 to 42.8% in 2021. Employment in the sector also saw an uptick, growing from 42% in 2000 to 49% in 2019. Furthermore, despite being in its developmental phase, Indonesia's trade in services showed robust growth. The World Bank data for 2023 indicates that the country nearly doubled its services exports from USD 16.9 billion in 2010 to USD 31.6 billion in 2019. This underscores the critical role of the services economy in Indonesia's broader economic strategy.
The dashboard was showcased at an extensive full-day workshop on 6 May 2024 in Bandung, drawing participation from trade analysts and negotiators at the Ministry of Trade along with officials and analysts from other key line ministries. Trade in Services experts from ARISE+ Indonesia, Paul Baker and Neetish Hurry, led the demonstration and provided in-depth training to participants, ensuring they were well-equipped to effectively utilize the dashboard.
The Director of Trade in Services Negotiations, Rizalu Akbar, expressed high appreciation for the new tool and strongly recommended its fully use not only within the Ministry of Trade but also across other relevant ministries. He further underscored the critical need for regular data updates to ensure the dashboard remains a robust and effective instrument for trade analysis and decision-making.
Nina Darsina, a Trade Analyst at the Directorate of Trade in Services Negotiation, Ministry of Trade, who participated in the workshop, praised the utility of the monitoring tool for overseeing trade in services with partner countries. "This tool enables us to utilise the data to project the development of trade in services over the next five years," said Nina.
Rangga Putra Yudha, a Junior Analyst at the Directorate General of Immigration, Ministry of Law and Human Rights, highlighted the additional benefits of the tool, noting its usefulness in helping his directorate monitor the entry of foreigners into Indonesia on business or investor visas. Rangga's insights underscore the dashboard's versatility in enhancing both trade and regulatory oversight.
