ABSTRACT

The leaders of ASEAN countries and the six partner countries of the ASEAN FTA (Australia, China, India, Japan, Republic of Korea and New Zealand) launched the Regional Comprehensive Economic Partnership (RCEP) negotiations in November 2012 with the aim of reaching a modern, comprehensive, high-quality, beneficial among ASEAN Member States and ASEAN FTA partners. This study aims to analyze the competitiveness and impact prediction of Indonesia's participation in the RCEP. Using Revealed Comparative Advantage (RCA) analysis, this study focused on analyzing product commodities among RCEP members including Indonesia. The results of this study show that the competitiveness of Indonesian products is still weak compared to most other RCEP member countries. Therefore, the Government of Indonesia should enhance the competitiveness of products in order to compete and take advantage of its participation in the RCEP. Furthermore, impact prediction analysis uses Global Trade Analysis Project (GTAP) application version 9, with 17 countries / regional and 43 products aggregations. The simulation results show that with the enforcement of the RCEP agreement, it is predicted to increase trade performance, GDP and the welfare of most Member States including Indonesia.