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Bridging the Divide: Key Agendas for Discussion at 13th WTO Ministerial Conference

Bridging the Divide: Key Agendas for Discussion at 13th WTO Ministerial Conference

Writer:

Theofillius Baratova A. K., S.Sos.

Head of Policy Partnership, Center for World Trade Studies Universitas Gadjah Mada.

Writer:

Lukas Andri Surya Singarimbun, S.I.P

Manager of Research Outputs, Center for World Trade Studies Universitas Gadjah Mada.

Editor:

Maria Angela Koes Sarwendah, S.I.P.

Head of Research and Publication Division, Center for World Trade Studies Universitas Gadjah Mada.

The 13th World Trade Organization (WTO) Ministerial Conference (MC) will take place on 26th until 29th February 2024. Bringing several issues regarding the international trade regime, this edition of MC will discuss several pivotal issues, such as: 1) WTO Reform; 2) Agreement on Fisheries Subsidies, 3) Extension of E-commerce, 4) TRIPS Waiver, 5) Agriculture negotiations, and 6) Development related issues. This year’s conference will be held in Abu Dhabi, UAE, amidst the global uncertainty of international peace, fragmentation of the global economy, and deteriorating environmental sustainability. With the existence of these challenging issues, several argue that the conference will produce few progressive results and will likely fail to deliver much. 

Despite skeptical views by some, significant progress on important issues might still be produced from WTO MC13. For instance, the most pivotal issue of WTO reform regarding the dispute settlement mechanism. The US has blocked all new appointments to the Appellate Body as the terms of judges since 2017, whereas all seven seats of the body have been vacant since December 2020 and subsequently disabled the WTO enforcement. In consequence, the incapacitated Appellate Body leads to blockade by countries ruled against with filing an appeal known as “appealing into the void”. Failure to conclude progressive advancement regarding this issue will proliferate current practices of weaponization of trade by countries.

Another important issue is on the E-commerce topics. In Abu Dhabi, the WTO members will convene to address two pivotal issues: the continuation of discussions under the Work Programme on e-commerce and the fate of the Moratorium on Customs Duties on Electronic Transmissions, both initiated in 1998. While the Work Programme appears to proceed smoothly, the Moratorium on Customs Duties on Electronic Transmissions faces significant contention. The Moratorium, which has historically exempted digital products from tariffs, faces polarization. Some member states advocate for its permanence while others, notably developing countries such as India, South Africa, and Indonesia, argue that it deprives them of vital revenue, particularly as digitalization advances and new technologies emerge. Amidst these debates, the uncertain future of the Moratorium underscores the intricate dynamics of negotiations within the WTO and highlights the challenges of reconciling diverse perspectives on digital trade and revenue generation.

Supported by a considerable group of WTO members and business organizations, the Moratorium's extension faces uncertainty as wavering commitments, notably from the US, and concerns about the evolving digital trade landscape come into play. Despite the Moratorium's historical extension every two years by consensus, the prospect of its continuity appears increasingly vague, especially considering the complexities of revenue collection in the digital age and the rising importance of e-commerce in global trade. WTO MC13 should pave the way towards consensus between facilitating digital trade and addressing the developmental needs and revenue concerns of WTO member states to navigate the future of global trade effectively. 

For Indonesia, this MC is also important to address several issues that are closely related to national interest—one of them being the Agreement on Fisheries Subsidies. As a maritime country, Indonesia has an urgent interest in ensuring the economic activities in marine ecosystems are not hampering the sustainability of oceans. Failure to ensure the sustainability of marine resources will not only damage the environment, but also will negatively affect Indonesia’s coastal communities. There are around 120 million people or 50% of Indonesia's population who live in coastal areas, depending on the sea to make their ends meet. However, coastal communities in Indonesia face several challenges that impact their socio-economic development, environmental sustainability, and quality of life. These vulnerabilities are identified as poverty, education, environmental degradation, unsustainable development, and unconnected supply chains.

Regarding this issue, through the Circular Economy Forum 2023 (CEF 2023), Center for World Trade Studies Universitas Gadjah Mada (CWTS UGM) has explored problems that occur at the grassroots level regarding the paradox between Indonesia’s abundant coastal communities and the fact that many of the communities remain under-developed. Furthermore, several stakeholders exhibit an ambiguous understanding of the latent capabilities inherent in an archipelagic nation. Consequently, the current state of the Indonesian fisheries sector still cannot solve many societal uncertainties.

Given the urgency of this challenge, CWTS UGM collaborated with academics, local communities, and the business sector in formulating the “Podocarpus Initiative” in CEF 2023 as a recommendation for the Indonesian government to adopt WTO’s Agreement on Fisheries Subsidies. This initiative emphasizes the establishment of a multi-stakeholder policy forum aimed at promoting the blue economy in domestic policy formulation, with transparent and optimal law enforcement in marine resource extraction sectors to encourage sustainable trade, environmental conservation, business mentoring, and educational curriculum development. The Agreement on Fisheries Subsidies is deemed important due to its key provisions aimed at ensuring the sustainability of the ocean by curtailing harmful subsidies, which are in line with Sustainable Development Goals (SDG) 14. Moreover, the enactment of this agreement holds the opportunities to develop Indonesia's coastal community potential. Giving certainties to small-scale fishers, which become the most vulnerable ocean community in the barn of prosperity, should be navigated by implementing the Agreement and the Initiative. 

Another issue that is crucial to Indonesia is agriculture and Special & Differential Treatment (S&DT). Speaking at the Doha Trade Negotiations Committee (TNC), Indonesia’s Ambassador for WTO HE. Dandy Iswara reiterated the urgent need to ensure that the demands of developing countries can be met through fair S&DT, including S&DT on food security and rural development. In this regard, Indonesia emphasized that “resolving our homework on PSH (Public Stockholding) and SSM (Special Safeguard Mechanism), as well as achieving a balanced and fair outcome in domestic support and cotton (which is a pivotal commodity to Indonesia), should continue to remain high on our agenda.” 

In conclusion, the WTO MC13 outcome is vital to not only reform the WTO as an institution that ensures the effectiveness of international trade, but also to respond to climate change and agricultural issues. Despite skeptical views by some, WTO Deputy Director-General Angela Ellard mentioned that WTO’s current significant progress of informal technical negotiations among its state members are heading towards the goal agreed at MC12 and will be well-functioning in 2024. Every member of the WTO should work expeditiously to reform the WTO dispute mechanism and rebuild trust towards the institution.  Moreover, critical issues for Indonesia sh be properly addressed during the MC 13, especially regarding Agreement on Fisheries Subsidies and Special and Differential Treatment on Agriculture.

International Workshop on Blue Economy 2023 Calls for South-South Cooperation in Accelerating Blue Economy

International Workshop on Blue Economy 2023 Calls for South-South Cooperation in Accelerating Blue Economy

Writer:

Lukas Andri Surya Singarimbun

Manager of Research Outputs, Center for World Trade Studies Universitas Gadjah Mada.

Writer:

Maria Angela Koes Sarwendah

Head of Research and Publication Division, Center for World Trade Studies Universitas Gadjah Mada.

Center for World Trade Studies Universitas Gadjah Mada (CWTS UGM) held an International Workshop on Blue Economy (5/12). This event marks the final agenda of Circular Economy Forum (CEF) 2023 that started in early July. This year's International Workshop sets “Sailing Together towards Blue Growth: Tailoring Collaborative Approaches Linking Communities, Governments, and Businesses” as its theme. 

The International Workshop on Blue Economy 2023 is designed in an interactive academic discussion format, highlighting the essential contributions of researchers and academicians to blue economy development in Indonesia and the Global South. The workshop gathers selected participants from CEF 2023’s Call for Papers to present and discuss their research in a closed forum. Following the presentation session, the public were later invited into an open public hearing session—moderated by Suci Lestari Yuana and Muhammad Rasyid Ridho—to convey their opinion and perspective over the presentations’ results. Discussions in both sessions are centered on two main topics, namely International Regulation on Fisheries and International Blue Economy Practices, as well as Circularizing Blue Economy and Development in Indonesia Context. 

In contrast to circular economy workshops held by CWTS UGM in the previous years, this year’s International Workshop on Blue Economy produces a collaborative policy recommendation from each participant—both the presenters with their academic perspective and the public. The proposed policy recommendation had also covered the view of each stakeholder involved in each CEF event regarding the blue economy, which will be disseminated and advocated to relevant international and national stakeholders in 2024. This is to support what Mario Aden Bayu Valendo, the Head Committee of CEF 2023, had conveyed at his CEF brief report delivery at the beginning of the event. 

“Our aim is clear – to create a platform that upholds a multi-party dialogue. This dialogue involves not only the local communities but also the government, private sector, academia, and the international society. It is time to weave the fabric of our blue economy by integrating the voices and aspirations of those who reside closest to our oceans,” said Mario. 

Lukas Singarimbun, S.I.P, researcher from CWTS UGM, also stated in his opening remarks regarding the main purpose of the International Workshop on Blue Economy, which is to bridge the gap of comprehension and adoption found in blue economy’s practices. 

“Today, we aim to bridge that gap by enhancing understanding, both conceptually and practically, empowering communities to harness the sea's potential while prioritizing environmental sustainability,” said Lukas.

Andreas Sennekamp, Head of the Academic outreach and WTO Chairs Programme Section, also emphasized multi-stakeholder collaboration in blue economy practices to mitigate the impacts of climate change. Sennekamp also reiterated the importance of implementing rules based activities of the fisheries industry to mitigate the adverse impacts of illegal fishing. 

As the final event of CEF 2023, the International Workshop on Blue Economy is specifically dedicated to the late Director of CWTS UGM, Dr. Riza Noer Arfani, to honor his recent passing. Dr. Riza had devoted his energy and ideas to foster an inclusive sustainable trade development, primarily through mainstreaming the circular economy in Indonesia by involving local communities alongside various stakeholders. His passion created a path to the establishment of the Circular Economy Forum, which had its prototype event in 2021. 

 

In a moment of silence session, Lukas delivered the WTO Chairs Programme message regarding Dr. Riza. “Prof. Riza Arfani has been a part of the very first cohort of Chairs accepted to the Programme. The WTO Chairs Programme, the global scientific community, and Indonesia have benefited from his exceptional efforts and contributions, and the team in the Universitas Gadjah Mada has been an active part of the Programme for over a decade under his leadership. Please accept our condolences regarding your loss. Nothing can replace Prof. Arfani's presence at this event, and we will not forget how valuable his life was.” Additionally, Lukas also stated that CWTS UGM will always remain committed to his visions in producing and disseminating knowledge of the circular economy.

Implementing Concrete Steps, CWTS UGM Carries Out Beach Cleaning and Mangrove Conservation

Implementing Concrete Steps, CWTS UGM Carries Out Beach Cleaning and Mangrove Conservation

Writer:

Anisa Febriyanti, S.Ikom

Secretariat Intern, Center for World Trade Studies Universitas Gadjah Mada.

Editor:

Christina Vania Winona, S.I.P

Head of Secretariat Division, Center for World Trade Studies Universitas Gadjah Mada.

Editor:

Muna Rihadatul Aisi, S.Sos.

Head of Dissemination Division, Center for World Trade Studies Universitas Gadjah Mada.

Saturday (4/11), CWTS UGM in collaboration with Suryakanta Institute and the Circular School Program Partnership (CSPP) held the Rantai Komang Trip (Beach Cleaning & Mangrove Conservation) activity together with a Yogyakarta environmental community, Garduaction (Garbage Care and Education). Held on the coast of Parangkusumo Beach, Yogyakarta, this activity was attended by more than 50 participants from various regions.

The Rantai Komang Trip commenced with opening remarks by Mr. Hindratna as the host of Garduaction. In his remarks, he expressed his gratitude and welcomed all Rantai Komang Trip participants. Mr. Hindratna then elaborated Garduaction's journey in managing waste on the Parangkusumo coast. Currently, Garduaction has produced several items from waste, ranging from lightweight bricks, paving blocks, children's toys, flower pots, to eco-enzymes. He also felt proud and honoured for the visit of the Rantai Komang Trip’s participants.

Afterwards, Mario Aden Bayu, the chief organizer of the 2023 Circular Economy Forum (CEF) explained briefly the technicalities of the Rantai Komang Trip event, including the output of this agenda which will be presented at the International Workshop, the next series of CEF 2023 activities.

Dr. Riza N. Arfani, Head of PSPD UGM, continued his remarks by appreciating Garduaction for warmly welcoming the Rantai Komang Trip participants. Dr. Riza explained that through this event, participants could learn first-hand about waste processing in the coastal area, as well as observe directly the processed waste products in Garduaction. He hopes that the enthusiasm of the participants in participating in this activity will continue in a series of other CEF activities until next December.

Eventually, the supervisor of the Suryakanta Institute and environmental activist, Major General TNI (Ret.) IGK Manila or well known as Opa Manila, stressed that the implementation of the circular economy and the blue economy are ways to protect the environment which is currently in a worrying condition. Humans are the main perpetrators of this condition by destroying the environment. Opa Manila hopes that this event will encourage more people to take part in raising awareness about the environment. 

The agenda continued with the formation of several groups who worked collectively to collect rubbish around the coast of Parangkusumo Beach. Simultaneously, participants also had "nyangkruk" or  casual dialogue with local residents to find out more about the lives of coastal residents. After completing these two activities, participants then sorted the collected waste based on several categories, which subsequently will be processed by the Garduaction team into valuable items. The agenda then continued with planting sea pandan mangroves in the area around Garduaction. 

 

The activity is closed with a bonfire while enjoying the beach atmosphere at night. In the midst of the warm atmosphere, the participants discussed and reflected on the series of Rantai Komang Trip activities..

CEF Talk Show 2: The Role of Business and Communities in Developing Circular Economy

CEF Interactive Talk Show #2: Peran Bisnis dan Komunitas Kembangkan Ekonomi Sirkular

Penulis:

Maria Angela Koes Sarwendah

Kepala Divisi Diseminasi, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Penulis :

Lukas Andri Surya Singarimbun

Website Manager, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Penulis :

Christina Vania Winona

Writer, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

The Center for World Trade Studies (CWTS) UGM and the Faculty of Social and Political Sciences (FISIPOL) UGM held an Interactive Talk Show with the theme "Empowering Circular Economy through Industry and Community Engagement" on Thursday (8/12). The Talk Show took place at the West Atrium of FISIPOL UGM and was attended by four speakers: Prof. Dr. Edia Rahayuningsih (Head of Indonesia Natural Dye Institute/INDI UGM), Sri Wahyaningsih, BSc (Founder of Sanggar Anak Alam), Ir. Setyo Hastuti, M.P (Secretary of the Department of Cooperatives and SMEs of Yogyakarta), and Boy Chandra (Chairman of Guwosari Training Center). The Talk Show is part of the Circular Economy Forum (CEF) within the UGM International Forum for Inclusive and Sustainable Development in Southeast Asia, Latin America, and the Caribbean Region.

Moderated by Josh Handani, Chairman of the Indonesian Circular Economy Consortium (KESI), the Talk Show began with a presentation by Prof. Dr. Edia Rahayuningsih regarding the role of INDI UGM in reviving the use of natural dyes as a manifestation of local wisdom and cultural heritage. As a country rich in resources, Indonesia is encouraged to have a spirit of production based on the principles of the circular economy. Prof. Edia emphasized that natural dyes are not just products but a movement that requires synergy and collaboration from various stakeholders.

From the government perspective, Ir. Setyo Hastuti, M.P. emphasized the importance of the penta helix collaboration between the government, businesses, media, communities, and society in developing environmentally sustainable SMEs. To promote the development of SMEs in the Special Region of Yogyakarta, the management reform of SMEs is emphasized to include formalization and digital transformation.

The presentation was continued by Sri Wahyaningsih, BSc, who explained the education system of Sanggar Anak Alam from kindergarten to high school. By providing freedom for students to explore areas of interest, Sanggar Anak Alam emphasizes a practice-based and research-based curriculum to foster entrepreneurial skills and awareness of environmental sustainability.

The Talk Show concluded with Boy Chandra from the Guwosari Training Center (GSTC) presentation on the crucial role of waste pickers as environmental observers and the application of zero waste management in establishing GSTC. GSTC focuses on household waste management training with the principle that the waste that comes in must go out as an end product. In 2020, GSTC implemented principles aligned with the circular economy by developing waste-to-block technology.

CEF Interactive Talk Show 1: School as Agent for Circular Economy Development

CEF Interactive Talk Show #1: Sekolah sebagai Agen Pengembangan Ekonomi Sirkular

Penulis:

Maria Angela Koes Sarwendah

Kepala Divisi Diseminasi, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Penulis :

Lukas Andri Surya Singarimbun

Website Manager, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Penulis :

Christina Vania Winona

Writer, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Center for World Trade Studies (CWTS) UGM and the Faculty of Social and Political Sciences (FISIPOL) UGM held an Interactive Talk Show with the theme "Connecting Schools with the Adoption of Circular Economy" on Wednesday (7/12). The Talk Show took place at the West Atrium of FISIPOL UGM and was attended by four speakers: Julie B. Appelqvist (Head of Environmental Sector Cooperation, Embassy of Denmark in Indonesia), Drs. Muthoin, M.Si (Head of Agency for Regional Development of Salatiga), Dr. Nurhadi, S.Sos, M.Si. (Lecturer at the Department of Social Development and Welfare, FISIPOL UGM), and Dr. Junita Widiati Arfani (Coordinator of IGPA). The Talk Show is part of the Circular Economy Forum (CEF) within the UGM International Forum for Inclusive and Sustainable Development in Southeast Asia, Latin America, and the Caribbean Region.

Moderated by Suci Lestari Yuana, MA, lecturer at the Department of International Relations, FISIPOL UGM, the Talk Show began with a presentation by Julie B. Appelqvist on the development of the circular economy in Copenhagen, Denmark. Julie shared several strategies for promoting the circular economy at the primary education level, such as giving students the title of "waste heroes," initiating the concept of waste-free schools and modifying the curriculum to focus on practical application. Implementing the circular economy in the education environment will also be supported by policies and collaboration from local governments.

Representing the Deputy Mayor of Salatiga, Drs. Muthoin, M. Si, the Head of the Agency for Regional Development of Salatiga, discussed Salatiga's efforts to address the impacts of the pandemic through community economic recovery and waste management. Several practices aligned with the circular economy can be found in farmers' utilization of food waste and washing water as liquid fertilizer for farmers in Salatiga. In addition, Salatiga plans to allocate local government budgets to support green schools and the establishment of waste banks in each neighborhood (RW).

From an academic perspective, Dr. Nurhadi, S.Sos, M.Si emphasized the important role of education in instilling a culture of the circular economy. Dr. Nurhadi highlighted three functions of universities in maximizing this role: the campaign function, the research and development function, and the advocacy function.

The Talk Show continued with a presentation by Dr. Junita regarding the objectives and activities of IGPA or the Indonesia Green Principal Award. As a program supporting elementary and secondary school principals, IGPA is designed to institutionalize the practices and principles of the circular economy among children from an early age. IGPA has been held since early 2022 with the collaboration among educational institutions, research bodies, and industries and has participated by 33 school principals in two training cycles.

The Talk Show concluded with the announcement of the release of a book written by participating school principals in IGPA titled "Rediscovering the Pearl of Sustainability" and the presentation of recognition certificates to several schools. The recognition certificates were divided into four categories. First, the Knowledge Co-Production category was awarded to Aisyiyah Unggulan Gemolong Elementary School and Muhammadiyah Ketanggungan Elementary School. Second, the Outreach Program category was awarded to Muhammadiyah Program Unggulan Khusus Kottabarat Surakarta Elementary School and Muhammadiyah 2 Alternatif Kota Magelang Elementary School. Third, the Curriculum Design/Adoption category was awarded to Muhammadiyah Sudagaran and MI Muhammadiyah Ajibarang. Fourth, the Partnership Building category was awarded to Muhammadiyah Plus Salatiga Elementary School.

CWTS UGM and FISIPOL UGM Held Circular Economy Policy Forum

PSPD dan FISIPOL UGM Adakan Forum Kebijakan Ekonomi Sirkular

Penulis:

Maria Angela Koes Sarwendah

Kepala Divisi Diseminasi, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Penulis :

Lukas Andri Surya Singarimbun

Website Manager, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Penulis :

Christina Vania Winona

Writer, Pusat Studi Perdagangan Dunia Universitas Gadjah Mada.

Centre for World Trade Studies (CWTS) UGM and the Faculty of Social and Political Sciences (FISIPOL) UGM organized the Forum on Sustainable Development Policy, Circular Economy, and Industrial Transformation on Tuesday (6/12). As part of the UGM International Forum for Inclusive and Sustainable Development in Southeast Asia, Latin America, and the Caribbean Region, this forum aims to generate policy proposals on trade and industrial transformation based on the circular economy through multi-stakeholder dialogues. The forum participants at the UGM Central Building include WTO delegates, national and local governments, academicians, local communities, and businesses. 

The Policy Forum was opened by Dr. Wawan Mas'udi, Dean of FISIPOL UGM, and Dr. Riza Noer Arfani, Head of CWTS UGM. Dr. Wawan and Dr. Riza emphasized the importance of learning from the community as initiators of the circular economy in formulating policies. "There is no need for overly theoretical frameworks, but we can learn from grassroots initiatives," said Dr. Wawan. Together with Dr. Poppy Sulistyaning Winanti, Vice Dean for Academic and Student Affairs at FISIPOL UGM, Dr. Riza facilitated the first session of discussions, featuring presentations from Dr. Werner Zdouc (Director of the Knowledge and Information Management, Academic Outreach and WTO Chairs Programme Division of the WTO), H.E. Dandy Iswara (Deputy Permanent Representative of the Republic of Indonesia II in Geneva/Ambassador), Dr. M. Pramono Hadi, M.Sc. (Head of the Center for Environmental Studies at UGM), and Prof. Dr. Catur Sugiyanto, MA (Head of the Center for Economic Democracy Studies at UGM).

In his speech, Dr. Werner Zdouc underlined the importance of the circular economy in replacing the traditional economy that exploits resources and harms the environment. In the context of circular economy development in ASEAN, Latin America, and the Caribbean (SEA-LAC) countries, Dr. Werner mentioned the urgency of addressing several issues, such as the definition and classification of end-of-life products, conformity assessment procedures, licensing, trade-related issues, and capacity building related to trade. It is also essential for SEA-LAC governments to not only promote a circular economy among business stakeholders but also raise consumer awareness and engage civil society in sustainable consumption practices.

Continuing from Dr. Werner, H.E. Dandy Iswara highlighted Indonesia's interest in cooperating to implement COP26 and the Paris Agreement amidst significant population growth. Indonesia has several targets, including implementing the circular economy to reduce emissions and sustainable fisheries targets. H.E. Dandy also emphasized the need for national and international collaboration to achieve effective and equitable implementation of the circular economy for each country.

Representing the academic community, Dr. M. Pramono Hadi, M.Sc., highlighted the potential realization of the circular economy through increased forest role in carbon sequestration. Dr. Pramono identified five key sectors that need attention in low-carbon development planning: forestry, agriculture, energy and transportation, industry, and waste and garbage. Besides forests, the circular economy can also be applied in developing dairy farming businesses. Prof. Catur Sugiyanto, MA, stressed that institutional improvement, technology, and support are pivotal in developing micro, small, and medium-sized enterprises (MSMEs) that contribute to the circular economy.

The event continued with a policy formulation session, where representatives from regional authorities, communities, and companies exchanged ideas and shared their sector-specific policies and practices. Various interesting issues emerged, such as priorities between mindset change and profit-based approaches, characteristics and availability of space in each region, recycling monitoring and evaluation issues, challenges in committing to circular economy initiatives, and concrete strategies that can be implemented through cross-sector synergies.

The Policy Forum concluded with a presentation by Prof. Daniel C. Esty from Yale University. After appreciating the outcomes of the G20 Indonesia and placing hope in Indonesia's leadership in ASEAN in 2023 in his remarks, Prof. Daniel emphasized three crucial elements in implementing the circular economy in Indonesia. First, there is a need to improve and strengthen policy frameworks at the global, national, and sub-national levels. Second, there is a need for a shift in business norms, mindset, and facilitation in financial and trade aspects directed toward climate action. Lastly, a social movement from all segments of society and the government is necessary to drive the transition from a linear to a circular economy.

In the end, the Policy Forum agreed to accommodate the formulation of circular economy regulations that address various aspirations. Some of the conclusions reached include (1) the establishment of regulations that are not merely top-down and minimally supervised but accompanied by multi-sector alternatives; (2) increased research on intangible aspects such as lifestyle patterns; (3) the creation of a flowchart of circular economy solutions that maximize the elements of customs, religion, education, culture, law, and local economy. The agreement is expected to be material for the CWTS UGM policy roadshow in early 2023, initially focused on the KARTAMANTUL region (Yogyakarta City, Sleman Regency, and Bantul Regency).

SARDEIN Bali: Initial Collaboration between CWTS UGM and INBIS UNMAS to Empower Local MSMEs

SARDEIN Bali: Initial Collaboration between CWTS UGM and INBIS UNMAS to Empower Local MSMEs

Writer:

Zachary Nichols-Lang

Student Intern, ACICIS - Center for World Trade Studies Universitas Gadjah Mada.

Editor:

Lukas Andri Surya Singarimbun

Website Manager, Center for World Trade Studies Universitas Gadjah Mada.

Mahasaraswati University Denpasar (UNMAS) Business Incubator (INBIS), Indonesian Young Entrepreneurs Association for Higher Education (HIPMI PT) UNMAS, and the Center for World Trade Studies at Gadjah Mada University (CWTS UGM) held the Sarasehan* Indonesian Economic Democracy (SARDEIN) on Friday (14/4). This SARDEIN session was held at Mahasaraswati University in Denpasar, Bali, with the theme "Projecting the Importance of Local MSMEs in National Economic Equality."

The event was opened with the welcoming dance "Sekar Jagat," followed by remarks from UNMAS and CWTS UGM representatives. Opening remarks by Vice Chancellor III UNMAS, I Komang Budiarta, S.Pd., M.Pd., M.Hum, expressed hope that the quality of MSMEs, especially in Denpasar, would improve as a result of the SARDEIN discussion. Dr. Riza Noer Arfani, Head of CWTS UGM, underlined the importance of collaboration between MSMEs, academics, and policymakers in encouraging the competitiveness of MSMEs in the international market. Representing the Suryakanta Institute, Maj. Gen. TNI (Purn.) IGK Manila, S.I.P. then welcomed the participants and assistants. Further, he motivated students to care more about the development of MSMEs.

Moderated by Putu Desi Anggerina Hikmaharyanti, M. Hum, the session continued with the Head of the Denpasar City Cooperatives and MSME Office, Dr. I Dewa Made Agung, SE., M.Sc  presenting examples of Denpasar City Government’s various MSME development practices. Some government efforts, including the creation of the KUBALI.com website to enhance MSME capital, an e-catalogue to increase MSME market access, a youth economic creativity festival “D'Youth Fest,” Denpasar Festival, and the MSME Actors Exhibition. Denpasar’s government also expects growth in cooperation for approaching MSME development problems, especially in promotion and marketing.

Head of the Buleleng Regency Tourism Village Network, Jero Mangku Made Ariawan, STT.PAR. MBA raised various circular economic activities in the Tourism Village of Buleleng Regency, Bali. Jero emphasized the importance of practical discussions and directions for farmers and MSME actors, who often do not specialize in a theoretical approach. By exploiting the potential of the location and culture, UMKM Tourism Villages in Buleleng Regency are advancing the arts, agriculture, and snack food sectors.

Continuing the discussion, the Head of INBIS UNMAS Denpasar, Daniel Manek, S.Fil., SM., MM, shared various experiences of MSME-themed competitions which students at UNMAS Denpasar attended to advance and develop student skills in the MSME field. Apart from the competition, Daniel also encourages skill development through collaboration like the one between UNMAS and CWTS UGM.

Furthermore, the Head of Section 1 of the Denpasar City HIPMI Branch Management Body (BPC), I Putu Hendra Arimbawa, SE., conveyed the great potential of Balinese MSME products and the relatively high potential of the MSME market in Indonesia. I Putu Hendra emphasized the importance of strengthening the MSME export-import sector to advance the Indonesian economy.

After the Question-and-Answer session, SARDEIN was closed by signing a Cooperation Agreement (PKS) between CWTS UGM and INBIS UNMAS on the local MSME empowerment program to create a sustainable, just, and resilient economy. This collaboration between CWTS UGM and universities in the n-helix scheme is oriented toward research, curriculum development, training, and policy advocacy.

 

* Sarasehan (in Bahasa) is a semi-formal discussion between experts and audiences on certain issues.

SARDEIN Vol. 3: The Important Role of Villages and Local Communities in the Circular Economy

SARDEIN Vol. 3: The Important Role of Villages and Local Communities in the Circular Economy

Writer:

Zachary Nichols-Lang

Student Intern, ACICIS - Center for World Trade Studies Universitas Gadjah Mada.

Editor:

Lukas Andri Surya Singarimbun

Website Manager, Center for World Trade Studies Universitas Gadjah Mada.

On Sunday (12/03), CWTS UGM collaborated with the Suryakanta Institute and Sumberharjo Green Tourism Exploration (JWHS) to deliver Volume 3 of the Sarasehan* Indonesian Economic Democracy (SARDEIN). This Sarasehan was held in Sumberharjo Village, Yogyakarta, with the theme "Vision of the Indonesian Circular Economy: Where is the Position of Villages and Local Communities?". Discussions were attended by local policy stakeholders of the Special Region of Yogyakarta (DIY), as well as practitioners and academics. Volume 3 of SARDEIN was also used to generate momentum for launching a book compiled by CWTS UGM and circular economic experts from various fields.

The SARDEIN workshop commenced with Klero Hamlet, Sriwidodo, welcoming the speakers and presenters to the Sumber Budhaya Building, which is said to hold historical significance for the people of Sumberharjo. Remarks were continued by the Head of CWTS UGM, Dr. Riza Noer Arfani, who identified the purpose of SARDEIN as a forum for discussion and knowledge dissemination, especially learning about circular economy practices at a local level context by involving various elements of society. During the event, Dr. Riza officially launched a book titled "Circular Economy in Universal Ideas and Local Practices" as CWTS UGM's contribution to developing a circular economy in 10 potential Indonesian sectors.

The Head of Sumberharjo Urban Village, Kurniawan Widiyanto, S.E, started discussions by highlighting that the village's 3R system (Reduce, Reuse, and Recycle) has not been maximally implemented. Kurniawan emphasized the importance of collaboration between the local government, university academics, the community, and local industry to campaign for circular economic practices at the sub-district and village levels, such as in Sumberharjo.

Director of the Independent Study and Administration Institute, Agus Hartono, S.S., discussed the problem of waste, which remains a long-term burden for Yogyakarta. Agus shared his belief that the government must maintain a firm approach toward managing waste with local communities and commercial industry. Agus further elaborated that companies should design products made from materials that are easy for consumers to process.

Ishadi Zayid, S.H., Head of the Sleman Regency Tourism Office, raised the environmental sustainability aspect of DIY’s provincial tourism sector as a topic for discussion. Ishadi expressed the commitment of the Sleman Tourism Office to developing community-based tourism that does not cause harm to the environment or conflict with the socio-cultural aspects of local communities. This commitment is manifested in the SAPTA PESONA campaign: Security, Orderly, Cleanliness, Coolness, Beauty, Friendliness, and Memories.

Representing the DIY Cooperatives and Small-Medium Enterprises (UKM) Office, the Head of the Cooperative and SME Entrepreneurship Services Division, Wisnu Harmawan, S.P., MT. said that 90% of DIY SMEs are still constrained in developing environmentally sustainable businesses due to a lack of financial support and guidance. Furthermore, based on European countries' rejection of DIY-based SME products, Wisnu conveyed the importance of pushing for environmental sustainability certification to expand these SME products into international markets.

SARDEIN Volume 3 was closed by Rizky Alif Alvian, MIR., CWTS UGM researcher and editor of the book "Circular Economy in Universal Ideas and Local Practices," which underlined the book's findings related to four circular economy trends visible in Indonesia. These trends include 1) circular economy practices driven from above (e.g., governments or international organizations); 2) practices driven from below (e.g., society and community); 3) potential production process improvement; 4) potential for policy making at the industrial level.




* Sarasehan (in Bahasa) is a semi-formal discussion between experts and audiences on certain issues. 



Re-evaluating Job Creation Regulation in SARDEIN Vol. 2

Re-evaluating Job Creation Regulation in SARDEIN Vol. 2

Writer:

Zachary Nichols-Lang

Student Intern, ACICIS - Center for World Trade Studies Universitas Gadjah Mada.

Editor:

Lukas Andri Surya Singarimbun

Website Manager, Center for World Trade Studies Universitas Gadjah Mada.

Center for World Trade Studies (CWTS) UGM, together with the Suryakanta Institute, and  Sociology Student Families (KMS), held Volume 2 of the Sarasehan* of Indonesian Economic Democracy (SARDEIN) on February, 28th 2023. This event, held in Fisipol UGM’s East Seminar room, carried the theme of “Improving Job Creation Regulations in National Investment Projections”. The discussion was attended by guest speakers Dr. Zainal Arifin Mochtar, Dr. Rangga Almahendra, and Ardy Syihab, with the discussion guided by Head of CWTS UGM, Dr. Riza Noer Arfani.

Dr. Zainal Arifin Mochtar, both a legal expert and lecturer at UGM’s Faculty of Law, said that there is currently a weakening of oversight towards the Indonesian government. Autocratic legalism was cited as an observable symptom of the lapse in political and legal oversight. In addition to Job Creation regulations, Dr. Zainal also conveyed the importance of monitoring the formulation of new regulations because there remains the potential for undesirable precedents, which would hinder the progress of Indonesia’s democratic legal and political systems. A key point of the presentation was that while increased levels of investment and economic progress are important for Indonesia, they should not be pursued in a way that prevents the advancement of  democracy.

Discussions continued with Dr. Rangga Almahendra, lecturer at UGM’s Faculty of Business and Economics, underlining the increasing prevalence of uncertainty caused by Jo Creation regulations. Continuing, Dr. Rangga explained that because Indonesia’s economic foundation is fragile and reliant on other countries, the government should focus on its improvement.  Because of the importance of  the Job Creation  regulations it is vital that they are reviewed to ensure an increase in employment opportunities, rather than serving only  the interests of employers.

The positions shared by Dr. Zainal and Dr. Rangga were endorsed by Ardy Syihab, who represented Merdeka Sejahtera Union (Semesta). Ardy made a point of rejecting a number of items from the Job Creation regulations that increase uncertainty for, or could potentially harm, Indonesia's workforce. Examples included regulations regarding layoffs, long leave, and the increasing openness of labor positions for foreign workers. In line with the preceding discussion, Ardy also emphasized the importance of questioning who will benefit from the accelerating levels of investment into Indonesia. In particular, Ardy highlighted that without appropriate regulation, the wealth created by this investment would likely not be enjoyed by society at large, instead leaving workers more disadvantaged.

 

* Sarasehan (in Bahasa) is a semi-formal type of discussion between experts and audiences upon certain issues. 

Indonesia Circular Economy Consortium (KESI)’s Commitment to Advance Sustainable Economy Through MSMEs Empowerment

Indonesia Circular Economy Consortium (KESI)’s Commitment to Advance Sustainable Economy Through MSMEs Empowerment

Writer :

Adelia Rachma Indriaswari Susanto

Staff of Empowerment and Community Outreach Division, Center for World Trade Studies Universitas Gadjah Mada.

Editor :

Lukas Andri Surya Singarimbun

Website Manager, Center for World Trade Studies Universitas Gadjah Mada.

Illustrator:

Muna Rihadatul Aisi

Graphic Design Manager, Center for World Trade Studies Universitas Gadjah Mada.

Currently, the implementation of circular economy has gained more attention in Indonesia.  In fact, Indonesia has incorporated the circular economy concept into the vision and development strategy of the five priority sectors in Indonesia's 2020-2024 National Medium-Term Development Plan (RPJM). The implementation of circular economy aims to balance economic benefits with environmental sustainability. 

In advancing the circular economy, Indonesia Circular Economy Consortium (KESI), affiliated with the UGM Center for World Trade Studies (CWTS) aims to boost circular economy-based SMEs, communities, and institutions based on local wisdom and knowledge. Currently, KESI has more than 20 members in Yogyakarta, Bali, and other regions in Indonesia, such as Rumijo Eco Indonesia, Sekolah Sampah Renggas Trengginas, and Sekolah Anak Sanggar Alam (SALAM). In  December 2022, KESI was also actively involved in organizing the Circular Economy Expo, which was attended by more than 50 participants from industry, community, and education sectors.

After developing and strengthening the consortium network, KESI held its routine meeting on 28 January 2023, at the PSPD UGM Office in which KESI Secretariat is also located. This meeting was KESI's initial milestone in reflecting on its commitment to realizing a sustainable, circular economy for its members. In this meeting, KESI members discussed the opportunities and challenges of implementing a circular economy in various sectors, particularly in SMEs and community sectors.

As a follow-up to this discussion in the next few months, KESI will soon organize skills, management, and marketing training classes for its members, and then it will be opened for the public. This program is expected to be a key solution to the problems of MSMEs that have limited access to upgrade their skills, management, and marketing proficiency. Furthermore, this training program aims to accommodate the vast range of participants, including training that is accessible to everyone, not just to KESI members. Thus, KESI will continue to be committed to implement circular economy practice based on collaboration and empowerment for all levels of society.