THE ROLE OF INTERNATIONAL TRADE IN INCREASING
ECONOMIC PRODUCTIVITY
Introduction
International trade is an exchange activity that is carried out by one country with
another country on the legality of mutual agreement. In addition, international trade also
promotes more advanced industrialization, transportation development, globalization and the
presence of multinational corporations. So it cannot be denied that International Trade is an
aspect that has a huge impact on the economic growth of a country. Activities carried out in
international trade are usually exports and imports. Where export is the activity of selling
goods and services abroad, while import is the activity of buying goods or services from
abroad. So if a country carries out more exports than imports, the country's national income
will increase so that later it will have a positive impact on economic growth (Fitriani 2019).
In addition, concrete benefits of international trade can include increased state
revenues, foreign exchange reserves, asset negotiations, and expanded demand for labor.
However, it should also be noted that international trade also has a variety of obstacles,
including due to currency variations, import strategies of defense countries, import quotas,
wars and economic depressions, there are costs that are passed on to customs areas, and
export producers are still wordy so that it requires a long process (Adhitya 2020). Economic
growth is a country's top priority. Therefore, the government must implement a variety of
economic policies that can achieve the stage of economic growth and exemplify the stage of
prosperity and welfare of society, namely by conducting international trade (Mikhral Rinaldi
2017).
In addition to imports and exports that drive economic growth, the growth of
Indonesian MSMEs also plays a vital role in economic growth. Because MSMEs are located
in various agricultural and non-agricultural economic zones that take the form of business
activities by offering various business opportunities, increasing investment, absorbing more
workers, reducing poverty and increasing income equality with the aim of promoting efficient
distribution and economic development (Erni Febrina 2020).
THEORETICAL STUDY
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
Productivity
Productivity is generally defined as the ability that exists in every person, system, or
institution in realizing something that is dreamed of using available resources. Then the
meaning of productivity still has similarities with production power or productiveness. The
concept of productivity basically examines the mental attitude and behavior oriented to
continuous improvement. According to P. Siagian, productivity is the ability to receive as
much profit as possible through the available facilities and infrastructure by realizing the
highest and even the best production results (Mukhtar 2020).
Economy
In general, economics can be defined as a part of social science that discusses human
activities related to the production, distribution and consumption of goods and services.
Abraham Maslow argues that economics is a scientific discipline that can overcome the
peroblem of human life through the utilization of all existing economic resources according to
the philosophy and concepts available in economic strata which are considered effective and
efficient. While the definition of economics itself according to Robbins is a science that
discusses human habits as a relationship between their intentions directed by the readiness of
resources so that the goals to be achieved can be realized. The economy is all forms of rules
or procedures in economics both in terms of industry and trade (Tindangen 2020).
International Trade
What is meant by "international trade" is a business carried out based on an agreement
between citizens of a nation and citizens of other countries. The citizens in question include
individuals, individuals with the government of a country or the government of a country with
the government of another country. International trade also contributes to industrialization,
transportation development, globalization and the presence of multinational corporations.
(Hasoloan 2013). Then, there are several indicators that drive a country to carry out
international trade, such as:
Indicators or natural potential;
To meet the needs of domestic goods and services;
There is an ambition to make a profit and increase the country's income;
There is a common taste for an item;
There is a desire to expand cooperation, political ties, and international support;
There was a surplus of merchandise that required a new market to sell the
merchandise;
With the onset of globalization, no country in the world can stand alone;
Factors such as climate, labor, culture, population, natural resources, and other factors
have an influence on the differences in yields produced.
There are differences in the mastery of science and technology in managing economic
resources (Hutabarat 2021).
In addition to the indicators driving international trade, there are also impacts of
international trade, which consist of positive and negative impacts. Here is the description:
Positive Impact of International Trade
International trade can benefit both exporting and importing countries. Exporting countries
gain access to markets, while importing countries enjoy the ease of acquiring goods that are
not available in the market they need. A country's economy is also significantly affected by
international trade. The following are the positive impacts of international trade, namely:
Strengthen international ties of friendship.
Trade between nations makes every nation aware of its need for friendship and
mutual benefit. As a result, national friendships can be strengthened through
international trade.
Make the country more prosperous.
Each country's income can increase as a result of international trade. It motivates
exporting countries to improve their knowledge and technology so that their products
have a competitive advantage and countries that have such advantages can sell them to
other countries.
Revenue stream for the state treasury
International trade has the potential to maximize a country's foreign exchange
reserves. In fact, import and export taxes are a major source of revenue for many
countries.
Create productivity and specialization
International trade makes goods specialized. Countries involved in international
trade do not have to make every good they need. However, they only make goods and
services that are made efficiently when analogous to other countries.
High-quality goods that are not produced domestically can be enjoyed by citizens of a
country with trade.
Negative Impacts of International Trade
Not only good impacts, the existence of international trade also has a negative impact
on the country that does it. The negative impacts are as follows:
The attachment of one nation to another.
Rivalry in international trade is not constructive.
Many less competitive small industries have closed their businesses.
Public consumption follows a pattern similar to that of developed countries.
People do not have enough savings for investment. This happens as a result of
increased consumption.
The rise of economic colonization by developed countries (Aslami 2022).
RESEARCH METHODS
This study aims to determine the role of international trade in increasing economic
productivity in Indonesia. In carrying out research, a technique is needed that is in line with
the research objectives to be achieved. Research methods are generally defined as objective
techniques in obtaining data with specific purposes and interests. The type of research
conducted is descriptive qualitative research. The data source used is secondary data derived
from journals, books and websites and for data collection techniques used is literature study
(Dani 2020).
RESULTS AND DISCUSSION
It is important for every country to always make every effort to increase the economic
growth of its country. Because a country is said to be successful if the country is able to
increase its economic productivity. One thing that can be used as a motivator in a country's
economic growth is international trade. In general, international trade is defined as import and
export activities between countries. In macroeconomic theory, exports and imports are part of
national income, so the relationship between exports and economic growth or the level of
national income is a predicate. From the expenditure side, imports and exports are one of the
largest contributors to gross domestic product (GDP), so changes in the value of imports and
exports directly affect national income (Tambunan 2022).
International trade activities, such as imports and exports, can be an engine of
economic growth. Increased exports will have a positive effect on economic growth because
exports can increase Indonesia's foreign exchange reserves, expand markets and create jobs
(Erni Febrina 2020). In addition, the concrete benefits of international trade can include an
increase in state revenue, foreign exchange reserves, asset negotiations, and expansion of
demand for foreign exchange Labor. Economic growth is a country's top priority. Therefore,
the government implements various economic policies that are able to achieve economic
growth rates and exemplify the level of prosperity and peace of society (Mikhral Rinaldi
2017).
Furthermore, productivity is also a very important influence of foreign trade on the
manufacturing sector, generally in the form of productivity and efficiency gains. There are
three main drivers of productivity and efficiency gains from foreign trade, namely:
Economies of scale mean that production can be marketed more widely and carried
out with more cost-effective methods (economies of scale reduce long-term average
costs for the industrial sector).
New technologies, meaning that international trade and foreign relations in general are
important vehicles for the diffusion of technology from developed to developing
countries. The most direct form of technology diffusion is when a country establishes
foreign relations so that it can import goods such as machinery that can increase
domestic productivity. For example, a developing country imports computers to
increase the productivity of government agencies. What is being imported here is
actually "new technology" built into the computers.
Stimulating competition, means increasing efficiency 'through the market', not just
new technology. The opening of International trade is often said to mean that certain
initially "dormant" and inefficient sectors of the economy will become more vibrant
under the impact of external competition. Trade can improve industrial efficiency
through increased competition. In fact, under such circumstances, it can be expected
that monopolies whose existence they feel threatened will try to block the flow of
goods abroad (Nasrullah 2014).
As in Indonesia, international trade plays an important role in economic development
procedures both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets and technology from abroad and can promote new
domestic manufacturing or industrialization. Where are the things This can be seen that
Indonesia's exports in 2022 showed spectacular performance with a growth of 25.31% (yoy),
so that exports in Indonesia amounted to US$19.16 billion. The main indicator is Indonesia's
flagship commodities, especially in the price of kernel oil products which rose by 17.96%
(mtm), nickel rose by 11.69% (mtm), and aluminum rose by 11.52% (mtm). In addition,
export performance is in line with the IHS Market report which states that Indonesia's export
goods orders in January 2022 were the highest on record when equated to the previous year.
In line with the increase in exports, Indonesia's imports in January 2022 also escalated
to US$18.23 billion, an increase of 36.77% (yoy). The increase in imports in Indonesia shows
a spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. It is evident that raw and auxiliary goods
and capital goods grew by 39.57% (yoy) and 41.94% (yoy) respectively. At the same time, the
growing public confidence also resulted in an increase in economic activity and local demand
which caused imports of consumer goods to be pushed high with a percentage of 10.25%
(yoy). The increase in imports in Indonesia shows a spectacular performance in economic
recovery as the primary element comes from the constant strengthening of local production
activities. The explicit performance on exports and imports is also added by the happy
information on Indonesia's trade balance sheet which is still continuing its excess mode since
2020 or for 21 consecutive months.
CONCLUSIONS AND SUGGESTIONS
International trade is generally defined as import and export activities between
countries. International trade activities, such as imports and exports, can be an engine of
economic growth. The concrete benefits of international trade can include an increase in state
revenue, foreign exchange reserves, asset negotiations, and expansion of demand for labor. In
Indonesia itself, international trade has a very important role in the procedure of economic
development both directly and indirectly. This is because international trade can optimize
foreign exchange earnings, supply assets, and expand the demand for labor and technology
from abroad and can advance new domestic manufacturing or industrialization. Where this
can be seen that Indonesia's exports in 2022 showed spectacular performance with a growth of
25.31% (yoy), so that exports in Indonesia amounted to US $ 19.16 billion. In line with the
increase in exports, Indonesia's import side in January 2022 also escalated by US$18.23
billion, which is an increase of 36.77% (yoy). The increase in imports in Indonesia shows a
spectacular performance in economic recovery because the primary element comes from the
constant strengthening of local production activities. The explicit performance on exports and
imports is also added with happy information on Indonesia's trade balance sheet which still
continues the excess mode since 2020 or for 21 consecutive months.
The advice from researchers is that it is hoped that in the future the government will
pay more attention to international trade that is taking place at this time. Because in our
country export activities are still very dependent on nature which includes plantation and
agricultural products, but in the form of goods Indonesia is still very dependent on other
countries because the available technology is minimal and not sophisticated enough.
Therefore, it is hoped that the Indonesian government will help entrepreneurs, especially
small entrepreneurs, so that the products they produce can be more feasible and can further
strengthen the laws on international trade.
