Publication:
Evaluating the Shift in Incoterms for Indonesian Export Products

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Date
2016-12-01
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Published
2016-12-01
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Abstract
The Ministry of Trade (MoT) of Republic of Indonesia has requested the support of the World Bank in devising new and improve trade related policies for the benefit of the Indonesian economy. The MoT - with the help of the World Bank - has identified a number of areas where there is a needto fill knowledge gaps in order to inform policy-making. One of the identified areas is promoting “beyond cabotage” under the assumption that changing term of delivery from FOB to CIF will promote the Indonesian flag vessels which in turn the Indonesian economy will be benefited. To that end the World Bank has mandated PT. ITS Kemitraan to develop a study on evaluating the shift in term of delivery from FOB to CIF for Indonesian export products under the supervision of World Bank staff. The study should evaluate four commodities, such as Crude Palm Oil (CPO), coal, rubber and shrimp, where these commodities are known as the main Indonesian export products.This study aims to evaluate the shift in terms of delivery on four key export commodities as well as to explore the advantages and disadvantages of changing the terms of delivery. Due to difference in characteristics of each export product, then we present the analysis based on the commodity. Overall, we also provide conclusion and recommendation in accordance with the entire analysis results. On behalf of all partners, we would like to thank for your cooperation andcontribution. We wish you a good reading of this final report. We look forward to receiving the positive comments and the valuable feedbacks to improve the results of this study.
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World Bank. 2016. Evaluating the Shift in Incoterms for Indonesian Export Products. © World Bank, Surabaya. http://hdl.handle.net/10986/30951 License: CC BY 3.0 IGO.
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