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Indonesia is the largest Muslim country in the world. Would a free trade agreement (FTA) with the
country be beneficial both economically and politically to the United States? What kind of benefit could
Indonesia expect? This book presents a case for improved trade relations between Indonesia and the
United States and recommends advancing exploratory talks toward a US-Indonesia FTA. The authors
present a detailed study of the stakes involved in the various areas of the proposed negotiation and estimate
the FTA’s potential for trade creation, trade diversion, and welfare under different scenarios.
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>> In Brief
Selected chapters and sections are provided for preview only.
1. Introduction [pdf]
2. Natural Resources
3. Manufactures Trade
4. Labor and Environmental Issues in Indonesia
5. Government Procurement
6. Investment and Intellectual Property Rights [pdf]
7. Services Trade
8. Estimates from Gravity and Computable General Equilibrium Models
Dean DeRosa and John P. Gilbert
9. Conclusion [pdf]
Appendix A Technical Aspects of the Gravity and Computable General Equilibrium Models