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Doing Small Arm Defense Good Trading With Indonesia

1149 words - 5 pages

The great invention of the telecommunication the transportation technology allowed people to trade from one country to far end countries effortlessly. Nowadays, people have more access to information on diverse goods simply. We have more ways to compare things and more information to find right product for ourselves. Nowadays, trading allowed anyone on Earth can obtain high-quality technologies goods at anywhere easily. Also, manufactures have the opportunities to choose materials in necessity from world resources pool. Which is not limited to commercial goods but also applies to government needed goods, a Defense goods are also one of the great example of how trading made effective on many countries' defense system. The trading is more effective with in countries where one has high-technology and the other who is still focusing primary/ secondary industries, in other words countries between the advanced country and developing country. Besides the relationship between the countries puts hugs impact on their trading regulations.

Indonesia is one of the growing countries where has lots of potential for the new business opportunities. It is an archipelago, about 17,508 islands, has 238 million people, which makes Indonesia as the world’s fourth most populous among the world. The geographical factor made Indonesian archipelago to play key trade role in between Europe and Asia for many centuries. And this is a country where has vast natural resources and human resources at fairly low costs. Indonesia exported natural resources, oil and gas /Primary industrial good to America $ 14.6 billion in 2013 and forecasting $15.3 billion in 2014. Under the GSP (Generalized System of Preferences) Indonesia is expanding export market to America enormously, 652 types of products are entering U.S.A with this benefit with the duty-free treatment.
On the other hand, the US only exports about $ 8.0 billion, with the improvement from $5.1 billion in 2009 to $ 7.4 billon in 2012, which is the huge trade deficits. The major portion for the United States’ export on Indonesia is the defense related goods. Defense trade is an increasingly important component of the overall bilateral relationship. Typically, the defense merchandises are not simple to export to overseas. It requires to comply many regulations from several government organization such as State Department, TSA, AFT, Homeland Security and etc… Then, exporter needs to apply for several export licenses depends on the level of limitation. But procedures for Indonesia tends to be simple. The reasons why are the strong relationship built up between American and Indonesia over the many years.
This close relationship started back in 1940 when the US played important role in Indonesian independence in late 1940s and role as an anti-communist bulwark during the cold war. And American Military troops help Indonesian from an armed anti-Communist rebellion in Sumatra and Sulawesi during 1957-1958, partisan...

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