ANALYSIS OF BILATERAL ECONOMIC TRADE ACCORDING TO ISLAM

(Case Study of the Nation of Brunei Darussalam and the Republic of Indonesia)

Written by:

Hafizul Ilmi Nasution

36.2015.4.1.0749

ISLAMIC ECONOMICS DEPARTMENT

ECONOMICS AND MANAGEMENT FACULTY

UNIVERSITY OF DARUSSALAM GONTOR 2019/1440

ANALYSIS OF BILATERAL ECONOMIC TRADE ACCORDING TO ISLAM

(Case Study of the Nation of Brunei Darussalam and the Republic of Indonesia)

THESIS

Presented to University of Darussalam Gontor in Partial Fulfilment of Requirements for Completing the Bachelor Degree Program

in Faculty of Economics and Management

Department of Islamic Economics

Written by:

Hafizul Ilmi Nasution

36.2015.4.1.0749

Supervisor:

Al-Ustadz Andi Triawan, M.A

ISLAMIC ECONOMICS DEPARTMENT

ECONOMICS AND MANAGEMENT FACULTY

UNIVERSITY OF DARUSSALAM GONTOR 2019/1440

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MOTTOES

المتقين إلا عدو لبـعض بـعضهم يـومئذ الأخلاء Close friends, on that Day, will be enemies to each other, except for the righteous (Az-Zukhruf {43}: 67).

ذه سبيلي أدعو إلى الله على بصيرة أنا ومن اتـبـعني وسبحان الله وما أنا قل ه من المشركين

Say (O Muhammad SAW), “This is my way; I invite to Allah with insight, I and those who follow me. And exalted is Allah; and I am not of those who associate others with Him.”

(Yusuf {12}: 108)

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DEDICATION

I Dedicate this thesis to:

Allah S.W.T., who give me his mercy and blessing entire my life

The Prophet Muhammad SAW, who guided his ummah to Islam

My Beloved Parents, especially for my mother, Dewi Hafnida who help me in your silence prayer. My father, Ustadz Muhammad Fauzi Nasution who support me every time became a human better. My siblings, Razita Mawaddah, Habibul Ilmi and Rafiqah Fitiria who support me along my

study in University of Darussalam Gontor

All my organization in UNIDA: Gontor Tv UNIDA, Archive and Documentation, Department Publication, Department External, SIT, Student Association for Language Development (SALD), UKM Luar

negeri, Akhof Corp. and HMP-Islamic Economic.

All of my classmates in Islamic Economics, from Siman Campus and Gontor Campus, I’m nothing without you all.

Thanks for you, who prayed on me without my consciousness.

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ABSTRAK

ANALISIS PERDAGANGAN EKONOMI BILATERAL MENURUT ISLAM

(Studi Kasus Negara Brunei Darussalam dan Republik Indonesia)

Hafizul Ilmi Nasution36.2015.4.1.0749

Perdagangan Internasional merupakan salah satu cara untuk membuat masing-masing negara tercukupi kebutuhannya dan menutupi kekurangannya. Perdagangan internasional itu sendiri terbentuk dari 3 segi, yaitu bilateral yang berarti perdagangan antar 2 negara, regional yakni perdagangan antar negara-negara yang berada dalam satu wilayah dan multilateral yaitu perdagangan internasional suatu negara dengan negara lain tanpa adanya batasan wilayah. Indonesia sendiri adalah negara yang menerapkan perdagangan internasional dan menjalin hubungan dengan 94 negara, menjadikannya negara dengan ekspor terbesar ke-26 di dunia, dengan daya saing Indonesia menempati urutan ke-41. Sayangnya, sistem perdagangan internasional Indonesia masih bermasalah. Dengan adanya teori konvensional dalam perdagangan internasional seperti Teori Keunggulan Mutlak (Absolut Advantage) oleh Adam Smith, Teori Keunggulan Komparatif (Comparative Advantage) oleh David Ricardo, Teori Permintaan Timbal Balik (Reciprocal Demand) oleh John Stuart Mill, Teori Keunggulan Heckscher-Ohlin (H-O) dirasa masih memiliki kecacatan masing-masing dalam pengaplikasiannya di lapangan. Dengan adanya ekonomi islam bersama dengan pemikiran ulamanya, diharapkan mampu untuk memberikan solusi dalam permasalahan ekonomi internasional khususnya perdagangan ekonomi bilateral ini. Di lain pihak, Brunei Darussalam sebagai negara tetangga, dan juga mengikuti beberapa organisasi internasional bersama dengan Indonesia, telah mengadakan kerja sama ekonomi sejak ratusan tahun lalu. Faktanya, Brunei selalu saja surplus dalam neraca perdagangan bersama Indonesia. Tujuan penelitian inia adalah untuk mengetahui korelasi hubungan perdagangan bilateral Indonesia dan Brunei pada tahun 2011 – 2018, serta melihatnya dari segi Ekonomi Islam sebagai dua negara berkembang. Penelitian ini menggunakan metode penelitian mixed, dengan pendekatan analisisdeskripptif dan analisis TOT. Adapun lokasi penelitian memiliki tiga lokasi yaitu Kantor Pengawasan dan Pelayanan Bea Cukai Madiun, Kedutaan Besar Republik Indonesia Brunei Darussalam dan Pelabuhan Tanjung Priok. Dalam pengambilan data, peneliti menggunakan wawancara, dan dokumentasi, dan membatasi permaslahan hanya di bentuk perdagangan antara dua negara ini saja dalam ekspor, impor, bea cukai dan beban transportasi perdagangan. Hasil dari penelitian kuantitatif menunjukkan indeks harga ekspor Brunei ke Indonesia terus meningkat secara signifikan mulai tahun 2008 sampai tahun 2014 lalu menurun dari 2015 sampai 2017 dikarenakan harga minyak bumi mengalami penurunan. Sementara indeks harga impor Indonesia dengan Brunei cenderung berfluktuatif. Sementara, hasil dari penelitian kualitatif menunjukkan bahwa kedutaan kedua negara sangat komunikatif, kepabeanan tidak memiliki maslaah berarti, tetapi Regulasi transportasi antar kedua negara mungkin harus lebih dibenahi lagi. Terakhir, dari susut pandang Islam, Indonesia dan Brunei dalam perdagangan bilateral sudah benar, karena Brunei dan Indonesia saling berniaga secara makro untuk menambahi apa yang kurang dari negara masing-masing.

Kata Kunci: Ekonomi Bilateral, Perdagangan Internasional, Brunei Darussalam, Indonesia, Ekonomi Islam

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ABSTRACT

ANALYSIS OF BILATERAL ECONOMIC TRADE ACCORDING TO ISLAM

(Case Study of the Nation of Brunei Darussalam and the Republic of Indonesia)

Hafizul Ilmi Nasution36.2015.4.1.0749

International trade is one way to make each country meet its needs and cover their shortcomings. International trade itself is formed from three aspects, namely bilateral, which means trade between two countries, then regional i.e trade between countries in one region and multilateral namely international trade of a country with another country without any boundaries of the territory. Indonesia itself is a country that applies international trade and establishes relationships with 94 countries, making it the 26th largest export country in the world, with Indonesia’s competitiveness ranked 41st. Unfortunately, Indonesia’s international trade system is still problematic. With the existence of conventional theories in international trade such as Absolute Advantage Theory by Adam Smith, Comparative Advantage Theory by David Ricardo, Reciprocal Demand Theory by John Stuart Mill, The Heckscher-Ohlin Excellence Theory (H-O) etc. It is felt that they still have their respective defects in their application in the field. With the existence of the Islamic economy along with the thoughts of the ulama, it is hoped that it will be able to provide solutions to international economic problems, especially bilateral economic trade. On the other hand, Brunei Darussalam as a neighboring country, and also following several international organizations along with Indonesia, has held economic cooperation since hundreds of years ago. In fact, Brunei is always a surplus in the trade balance with Indonesia. The aim of this study was to determine the correlation of bilateral trade relations between Indonesia and Brunei in 2011 - 2018 and to see it in terms of the Islamic Economy as two developing countries. This study uses a mixed research method, with a descriptive analysis approach and TOT analysis. The research was done at three locations namely the Customs Supervision and Service Office of Madiun, the Embassy of the Republic of Indonesia Brunei Darussalam and the Tanjung Priok Port. In retrieving data, researchers used interviews and documentation, furthermore limiting issues in this thesis was only in the form of trade between these two countries in export, import, customs, and transportation trade expenses. The results of quantitative research show that Brunei’s export price index to Indonesia continued to increase significantly from 2008 to 2014 and then declined from 2015 to 2017 due to declining oil prices. While Indonesia’s import price index with Brunei tends to fluctuate. Meanwhile, the results of qualitative research indicate that the embassies of the two countries are very communicative, customs do not have significant problems, but the regulation of transportation between the two countries may need to be addressed again. Finally, from the perspective of Islam, Indonesia and Brunei in bilateral trade are correct, because Brunei and Indonesia are, on a macro level, adding to what is lacking in their respective countries.

Keywords: Bilateral Economy, International Trade, Brunei Darussalam, Indonesia, Islamic Economy

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ACKNOWLEDGEMENT

In the name of Allah, the Beneficent, the Merciful, praise be to Allah the Lord of the world, pray and peace be upon the final prophet of Islam, Muhammad SAW, his family, companions, and his followers.

By the mercy, blessing and help of Allah only, the researcher could be finished writing this simple thesis, the researcher feels to necessitate himself to convey gratitude for all indispensable direction, guidance, and assistance. So in this occasion, the researcher would like to express his greatest debt and deepest thanks are owed to:

1. The Headmasters of Darussalam Modern Islamic School Gontor; Dr. (H.C) K.H. Abdullah Syukri Zarkasyi, M.A., K.H. Hasan Abdullah Sahal, K.H. Syamsul Hadi Abdan, S. Ag, who have allowed the researcher to study at University of Darussalam Gontor.

2. The Rector of UNIDA GONTOR; Prof. Dr. KH. Amal Fathullah Zarkasyi, M.A., Dr. H. Hamid Fahmi Zarkasyi, M.A., M.Phil., Dr. Setiawan Bin Lahuri, M.A. and Dr. Abdul Hafidz Zaid, M.A.

3. Honourable the supervisors, Andi Triawan, M.A. and Atika Rukminastiti Masrifah, M.E. Sy for their worthy guidance and suggestion.

4. Dean of the Economic and Management Faculty, Dr. Khoirul Umam, M.Ec

5. Head of Islamic Economic Department, Royyan Ramdhani Djayusman, M.A.

6. All the lectures of University of Darussalam Gontor, for their teaching during his study in Campus.

7. Everyone that are mentioned and involved in this thesis.8. For his parents who have educated him from childhood, and his

beloved brothers and sisters who have supported him mentally and materially. All his friends who have contributed to accomplish this thesis.

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May Allah S.W.T. reciprocate a proportionate reward for them and bless them, and may this humble thesis be valuable and useful for the readers and especially for the researcher.

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ContentsDeclaration (Statement of Authenticity) ................................................. iApproval of Supervisor ........................................................................... iiCertification (Dean Approval Page) ........................................................ iiiDecision of the Team (Examiners Approval Page) ................................. ivMottoes ................................................................................................... vDedication ............................................................................................... viIndonesian Abstract ................................................................................ viiEnglish Abstract ...................................................................................... viiiAcknowledgement .................................................................................. ixContents .................................................................................................. x

CHAPTER I: INTRODUCTIONA. BACKGROUND OF STUDY ........................................................ 1B. PROBLEM FORMULATION ........................................................ 5C. RESEARCH OBJECTIVES............................................................ 5D. RESEARCH SCOPE ....................................................................... 5E. BENEFITS OF RESEARCH .......................................................... 5

CHAPTER II: LITERATURE REVIEWA. Previous research ............................................................................ 7B. Theoretical Framework ................................................................... 12C. Research Framework ....................................................................... 63

CHAPTER III: RESEARCH METHODS ......................................... 65A. Research Objects ............................................................................. 65B. Place and Time Research ................................................................. 65C. Type of Research ............................................................................. 65D. Data Source .................................................................................... 66E. Data Collection Techniques ............................................................. 68F. Data Analysis Techniques ................................................................ 69

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CHAPTER IV: RESULTS AND DISCUSSIONS ............................... 71A. General Description ......................................................................... 71IB. Data Analysis Results ...................................................................... 110C. Discussion ....................................................................................... 122

CHAPTER V: CLOSINGA. Conclusion ....................................................................................... 135B. Suggestion ....................................................................................... 137

APPENDIX I INTERVIEW RESEARCH INSTRUMENTS ........... 1551. KOORDINATOR FUNGSI EKONOMI KEDUTAAN BESAR

REPUBLIK INDONESIA, BANDAR SERI BEGAWAN ............. 1552. General Manager PPJK (Perusahaan Pengurusan Jasa Kepabeanan)

dan FF (Freight Forwarder) Jakarta ................................................. 1643. Praktisi Logistik Ekspor Impor (Owner PT Multi Prima Mandiri) . 172

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LIST OF TABLETable 3.D Data Source ........................................................................... 67Tabel. 4. A. 2. A.1 Profile of Republic of Indonesia .............................. 88Tabel 4. A. 2.A.4 Profile of the Indonesian Economy ........................... 95Tabel 4.A.2.B.1 Profile of The Nation of Brunei Darussalam ............... 102Tabel 4.A.2.B.4 Profile of the Economy of Brunei Darussalam ............ 109Tabel 4.B.1.A Development of Brunei and Indonesia’s Exports and

Imports............................................................................................. 111Tabel 4.B.1.B Indonesian Trade with Brunei relating Non-Oil and Gas

Export Value (commodity) ............................................................. 112Tabel 4.B.1.C Brunei and Indonesia’s Trade relates to the Value of Oil and

Gas Exports .................................................................................... 114Tabel 4.B.1.D Term of Trade (TOT) between Indonesia-Brunei ........... 115

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CHAPTER I

INTRODUCTION

A. BACKGROUND OF STUDYEvery country must have various policies to keep its country stable

in all sector, including economics’ aspects. International trade is one way to make each country meet its needs and cover their shortcomings. According to the father of the world economy, not Adam Smith, but someone who was born hundred years before him, namely Ibn Khaldun,1 stated that goods would be more valuable by trading across countries because of community satisfaction, merchant profits and country welfare would all increase (gains from trade).2 Meanwhile, international trade between countries is formed from 3 facets, there are, first, bilateral, which means trade between two countries, second, regional namely trade between countries in one region and the last one, multilateral namely international trade of a country with another country without any regional restrictions. In other point, Indonesia is a country that applies international trade and establishes relationships with 94 countries,3 making it the 26th largest export country in the world, with Indonesia’s competitiveness ranked 41st.4

 1 His real name is Abu Zayd ‘Abd al-Rahman ibn Muhammad ibn Khaldun al-Hadrami (عبد الرحمن بن محمد بن خلدون الحضرمي) born on May 27, 1332, and died March 19, 1406 at 73 years old. He was a Muslim historian from Tunisia and was often referred to as the founding father of historiography, sociology, and economics. His famous work is the Muqaddimah (Introduction).

 2 Ibn Khaldun. Mukaddimah. translated by Masturi Ilham MC, Cet II; (Jakarta: Library Al-Kautsar, 2001), pg. 715.

 3 Overall Everyday Control (OEC), Indonesian Export, https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/idn/all/show/2016/, accessed on Tuesday. 09:58 30 October 2018

 4 Kementerian Perdagangan Republik Indonesia, Macroeconomics Update, pg. 09, http://bppp.kemendag.go.id/media_content/2017/07/Macroeconomics_Update_as_of_23_Maret_2017.pdf, accessed on Tuesday. 30 Oktober 2018 10:22

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Unfortunately, Indonesia’s international trade system is still problematic. World Bank publications show a decline in Indonesia’s ranking on cross-country trade indicators, from 105th in 2016 and 108th in 2017 to 112th in 20185. This wrecked Indonesia’s achievement in ease to doing business which only ranked 72nd in 2018, although it has increased from rank 91st in 2017, and still gets the same reality from the previous year, which is still ranked below neighbouring countries such as Malaysia (23 to 24) , Brunei (72 to 56) and Thailand (77 to 26).6 In other words, there are errors in the application of the system which is caused by the current ideas of the theory of international trade.

Over time, international trade spawned several thoughts by several experts such as Absolute Advantage Theory by Adam Smith, Comparative Advantage Theory by David Ricardo, Reciprocal Demand Theory by John Stuart Mill, Theory of Excellence Heckscher-Ohlin (HO), etc. Unfortunately, each theory has its own defects in its application, such as describing to much assumptions that do not exist in developing countries or even in developed countries, that often cause an injustice in international trade such as monopoly, oligopolies, and other unfair competition. So, actually, Islamic economics with its international trade theory from various figures and scholars is considered capable of providing solutions to international economic problems, especially bilateral economic trade.

In order to prove this statement, the author wants to show a research on the bilateral economic analysis between two developing countries that have an Islamic background, which are the Nation of Brunei Darussalam and the Republic of Indonesia. To make sure it, the basic evidence that Indonesia and Brunei have an Islamic background is the joining of these two

 5 The World Bank, Indonesia, https://data.worldbank.org/country/indonesia?locale=id accessed on Selasa, 10:03 30 October 2018

 6 Bank Internasional untuk Rekonstruksi dan Pembangunan, Bank Dunia. 2017. Doing Business Report | Measuring Business Regulations, Indonesia, pg. 4 http://www.doingbusiness.org/content/dam/doingBusiness/country/i/indonesia/IDN.pdf

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countries into the OIC (Organization of Islamic Conference).7 Indonesia as an archipelago that has many islands and neighbours is the most Muslim-majority country in the world. In cooperation, there are at least 94 countries that have bilateral relations with Indonesia, including Brunei Darussalam, which has 9% of Indonesia’s imported oil from this country.8 Next, Brunei Darussalam is a small but rich Islamic country. The presence of Brunei in the middle of Southeast Asian countries contains its own uniqueness as a monarchy-like royal state like authoritarian Middle Eastern countries but has a close relationship with their own people.9 One of Brunei’s uniqueness is in terms of its economy, which 60% of GDP of this country is in the oil

 7 The Organization of Islamic Cooperation (formerly called the Organization of the Islamic Conference; Arabic: منظمة التعاون الإسلامي) is an international organization with 57 member countries which have a permanent representative at the United Nations. The OIC was established in Rabat, Morocco on 12 Rajab 1389 H (September 25, 1969) at the First Meeting of the Islamic World Leaders held in reaction to the burning of the Al Aqsa Mosque on August 21, 1969 by fanatics’ followers of Christian and Jewish in Jerusalem. The OIC changed its name from its previous name; Organization of the Islamic Conference on June 28, 2011.

Indonesia joined when the OIC was established. The reason for Indonesia’s entry

into this organization is indeed accompanied by a number of considerations, of course

regarding solidarity as fellow Muslims in the world, and also other positive impacts that are

expected from cooperation between Indonesia and other Islamic countries.On the other side, Brunei Darussalam joined OIC when its independence on 01 January

1984. As an Islamic country, one of the objectives of Brunei Darussalam’s membership in the OIC was to work together with other OIC members in promoting Islamic interests and values for the benefit of Muslims. In addition, Brunei Darussalam can also strengthen political and economic ties with them.

Read: Ek m eleddin İhsanoğlu. The Islamic World in the New Century: The Organiza t ion of the Islamic Conference,1969-2009, (New York: Columbia University Press, 2010), pg. 15.

 8 Agus Syarip Hidayat, “Dinamika Kerjasama Ekonomi Indonesia Dengan Anggota Organisasi Konferensi Islam (OKI)”, Bulletin Ilmiah Litbang Perdagangan, Vol.10 No.1, 2016, pg. 37

 9 Lisa Anderson, “Absolutism and the Resilience of the Monarchy in the Middle East”, Political Science Quarterly, vol.1, no.1, 1991, pg. 4

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and gas sector and which is exported abroad. To meet the needs of food, transportation, and clothing, most depend on imports, including Malaysia, Singapore, Indonesia, Japan, South Korea, and the United States.

Figure 1. Brunei Darussalam Trade Balance - Indonesia 2011-2017

(In Millions of BND)

Notes: (-) deficit for Indonesia

Source: Brunei JPKE, data with Brunei Dollar (BND) {processed}

In the figure above, we can see that Indonesia always gets a deficit because Brunei always gets more profit from its oil and gas exports to Indonesia, but Indonesia gets a surplus that is not much when Brunei suffers purchasing power because world oil prices fell. In addition, as two countries that have an Islamic background and join the OIC, the International Trade Economy should, according to Islam, be a solution in order to have an economic balance between these two countries. Therefore, the author is interested in how the bilateral economic outlook on this matter, and observes it from the standpoint of Islamic Economics, then examines it more deeply in the thesis entitled: “Analysis of Bilateral Economic Trade according to Islam (Case Study of the Nation of Brunei Darussalam and the Republic of

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Indonesia)”.

B. PROBLEM FORMULATION1. What are the correlation in bilateral economic relations between

Indonesia and Brunei in 2011 - 2018?2. What is the theoretical view of the Islamic Economy on Bilateral

Trade between Brunei and Indonesia as two developing countries?

C. RESEARCH OBJECTIVES1. To determine the correlation of bilateral economic relations between

Indonesia and Brunei in 2011 - 2018.2. To find out the theoretical views of the Islamic Economy on Bilateral

Trade between Brunei and Indonesia as 2 developing countries.

D. Research scopeFor this thesis, the author only limits the analysis of bilateral

economics in the form of trade between these two countries in export, import, customs, and transportation trade expenses. In its Islamic perspective, it is based on several scholars such as Al-Ghazali, Ibn Khaldun, Abu Ubaid, and

Abu Yusuf.

E. BENEFITS OF RESEARCHWith this thesis writing, the benefits can be felt universally, some of

them are:

1. First of all, for readers, the results of this thesis research can provide benefits in becoming a reference for bilateral economic development between the two countries. Secondly, they can know in real terms what happened to international economic relations with the data presented as happened between Brunei and Indonesia. Third, they can know the views of bilateral economic relations according to Islam theoretically and practically.

2. For the author himself, it is expected to be an addition to knowledge

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and insight and also really pouring of knowledge on what has been learned in the course of Islamic International Economics and to make new contributions in the world of international economic science.

3. For academics, thesis research is useful for the development of Economics International, so then it can be used as a reference for students and the next campus.

4. In general, this thesis is expected to be able revealing the bilateral economy more clearly from its Islamic point of view by using the example of 2 countries that joined the OIC, which are Brunei Darussalam and Indonesia.

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CHAPTER II

LITERATURE REVIEW

A. Previous research By learning to some previous research that has been done by the

author, which specifically deals with the problem title above, finally, he had found some substances which are different from the problem that the author examines.

First, Iskandar Maulana, Tri Sukirno Putro, and Darmayuda wrote about Analisis Perdagangan Bilateral Indonesia dengan Malaysia Periode 2003-2012. The purpose of this study is to determine the development and comparison of trade between the two countries (bilateral), Indonesia and Malaysia for the period 2003 to 2012. The method used is quantitative data analysis and descriptive data analysis. Data on Indonesia’s bilateral trade calculations with Malaysia uses the export-import price index formula, and in this journal, the independent variable is the dependent variable to explain the export function. The results of this study can be concluded that in terms of the commercial value of Indonesia and Malaysia in 2003-2012, the Indonesian trade average exchange rate shows 100 percent, this means that the countries of Indonesia and Malaysia are still mutually beneficial in bilateral trade imports and export business amid economic turmoil. Unfortunately, this journal is not from an Islamic economic background.10

Second, Nasrullah wrote about Analisis Pengaruh Perdagangan Internasional terhadap Pertumbuhan Ekonomi Indonesia Tahun 1999-2013. The research’s purpose is to determine the effect of Net Exports, Investments, Labor, and Exchange Rates on Indonesia’s Gross Domestic Income. The method approach of this thesis uses library research, i.e. the

 10 Iskandar Maulana, Tri sukirno, Putro Darmayuda. “Analisis Perdagangan Bilateral Indonesia dengan Malaysia Periode 2003-2012”, Jom FEKON, Vol. 2, No. 1, 2015. pg. 1-19.

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research that carried out with library materials in the form of scientific writings and scientific research reports which have a relationship with the topic under study and analyzed using multiple regression with the “ordinary least square” approach. While the results of this research show that Net exports have a negative and significant effect on economic growth in Indonesia during the period 1999-2013. Investment has no effect on economic growth in Indonesia during the period 1999-2013. Labor has a positive and significant effect on economic growth in Indonesia during the period 1999-2013. Exchange rates did not affect economic growth in Indonesia during the period 1999-2013.11

Third, Agnieszka Drzymala wrote about Economic Cooperation Between the European Union and Japan. The research’s purpose is to show the history of economic relations between the European Union and Japan. The method used in this journal is descriptive qualitative method with documentation data. The results of the study show that the current course of economic cooperation will be demonstrated through the volume of trade and the flow of foreign direct investment from the European Union to Japan.12 This journal can be a reference to describe the economy of Indonesia and Brunei in this thesis.

Fourth, Izma Khairunnisa Harahap and Astrid Maria Esther wrote about Dampak Penerapan Indonesia-Japan Economic Partnership Agreement terhadap Ekspor Indonesia ke Jepang. The purpose of this study is to determine the relationship between the variables of exports, GDP, REER and FDI exchange rates and the influence of these variables in the short and long term. In addition, this study also aims to determine the extent of the influence of Indonesia’s participation in the Indonesia Japan Economic Partnership Agreement. The method of data analysis in this study

 11 Nasrullah, Analisis Pengaruh Perdagangan Internasional terhadap Pertumbuhan Ekonomi Indonesia Tahun 1999-2013, Skripsi Sarjana (Makassar: Universitas Hasanuddin, 2014), pg. 1-88

 12 Agnieszka Drzymała, “Economic Cooperation Between the European Union and Japan”, Comparative Economic Research, Volume 20, Number 2, 2017, Pg. 129-146

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was conducted using the Error Correction Model (ECM) method estimated from the OLS (Ordinary Least Square) model. The results of the study indicate that Indonesia’s participation in the Indonesia-Japan Economic Partnership Agreement, this agreement has no effect in the short or long term. And the Japanese GDP variable has the most significant influence in increasing Indonesian exports to Japan.13

Fifth, Agus Syarip Hidayat wrote about Dinamika Kerjasama Ekonomi Indonesia dengan Anggota Organisasi Konferensi Islam (OKI). The purpose of this study is to discuss the dynamics of economic cooperation between Indonesia and OIC members, the prospects for OIC’s economic liberalization and its potential impact on the Indonesian economy. The study method used a qualitative descriptive method, analyzed by the Computable General Equilibrium (CGE) model. The data used in this study are primary and secondary data. The result analysis shows that the OIC’s economic liberalization has the potential to provide diverse sectoral impacts for Indonesia, particularly seen in macroeconomic variables such as economic growth and inflation, industrial output and trade. Indonesia and other OIC members can obtain optimal benefits when applied to full liberalization. The shortcomings of this journal are the assumptions written still 50% to be declared strong and become suggestions for the next.14

Sixth, Nafis Irkhami wrote about Intervensi Negara Dalam Perekonomian: Melacak Epistemologi Politik-Ekonomi Islam. The purpose of this study is to try tracing conceptual understandings of the basic elements of science, including those concerning worldview and epistemology. The method of writing used is an epistemology study with descriptive literature method. The data used are from scriptures and holy theorems such as Al-

 13 Izma Khairanisa Harahap, Astrid Maria Esther. “Dampak Penerapan Indonesia-Japan Economic Partnership Agreement terhadap Ekspor Indonesia ke Jepang”, Seminar Nasional Cendekiawan 2015. ISSN: 2460-8696, pg 701-711

 14 Agus Syarip Hidayat, “Dinamika Kerjasama Ekonomi Indonesia dengan Anggota Organisasi Konferensi Islam (OKI)”, Buletin Ilmiah Litbang Perdagangan, Vol.10 No.1, 2016, pg. 22-43

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Quran and the Hadith of the Prophet Muhammad SAW. The results of this paper conclude that the purpose of country intervention in the economy through Islamic public policy is ensuring the fulfillment of the basic needs of every citizen. Because this paper only explains from an epistemological perspective, it does not explain in detail in terms of real data from field research.15

Seventh, Abdulkader Cassim Mahomedya wrote about Public Policy in Islamic Framework: Exploring Paradigm Based on Islamic Epistemology. The purpose of this study is to emphasize the importance of the relationship between epistemology, science, and Islamic economics. In writing methodology, this paper uses the literature method with library data. The results of the writing say that Islamic Economics can have its epistemological premise in the development of science which is supported by the worldview differently and uniquely but does not conflict with the purpose of economic inquiry. Even though not in detail explaining the bilateral relations between the two countries, this paper can be a strong basis for understanding Islamic economics, including in terms of international trade.16

Eighth, Muh. Sholihuddin wrote about Kebebasan Pasar dan Intervensi Negara dalam Perspektif Ekonomi Islam. The purpose of this study is to address market freedoms in ASEAN countries and inter-state intervention from an Islamic perspective. The method presented is in the form of a literature review, with research data from Al-Quran and history. The results of the study show that market freedom in Islam can be justified if done with mutual pleasure (likes and likes), honesty, healthy competition, and openness, however, if there are a deviation and lack of justice in the market, the country has the right to intervene in order to guarantee price

 15 Nafis Irkhami. “Intervensi Negara Dalam Perekonomian: Melacak Epistemologi Politik-Ekonomi Islam”, Al-Tahrir, Vol. 16, No. 2, 2016. Pg. 485 - 503

 16 Abdulkader Cassim Mahomedya. “Public Policy in Islamic Framework: Exploring Paradigm Based on Islamic Epistemology”, SHARE, Volume 4, Number 2, July – December 2015. Pg. 187-228

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justice .17

Ninth, Tria Apriliana wrote about Posisi Ekspor-Impor Indonesia dalam MEA (Sebuah Studi Komparatif). The purpose of this research is to find out the position of Indonesia in facing the ASEAN Economic Community (AEC) from the perspective of Import-Export compared to nine other AEC member countries, and to find out the difference between the value of Indonesian Export-Import before and after the MEA was implemented until the third quarter of the first year. The writing method used is descriptive method and comparative test formed based on literature studies using secondary data, i.e. information related to export-import in the Central Statistics Agency, World Bank, World Development Indicator and ASEAN Statistics. The results also show that there is no significant difference between Indonesian exports before and after the enactment of the MEA, but there are significant differences between Indonesian imports before and after the enactment of the MEA. The disadvantage of this journal is that it does not include real data in the past few years.18

Finally, tenth, Bahrul Ulum wrote about Kontribusi Ibnu Khaldun Terhadap Perkembangan Ekonomi Islam). The purpose of this research is to reveal the contribution of Ibn Khaldun’s thoughts on the development of Islamic Economics. The writing method used is The method used is descriptive using a historical approach. The results of the study indicate that Ibn Khaldun simply proposed several economic theories including the production theory which consisted of; human nature and production, social organization and production and international organizations and production. He also put forward a theory of value, money, and prices, a theory of distribution consisting of salaries, profits, and taxes, and cycle

 17 Muh. Sholihuddin. “Kebebasan Pasar dan Intervensi Negara dalam Perspektif Ekonomi Islam”, Maliyah, Vol. 01, No. 01, June 2011. Pg. 1-21

 18 Tria Apriliana, “Posisi Ekspor-Impor Indonesia dalam MEA (Sebuah Studi Komparatif)”, Dinamika Global: Rebranding Keunggulan Kompetitif Berbasis Kearifan Lokal, ISBN 978-602-60569-2-4, Gedung Pascasarjana FEB UNEJ, 17 December 2016. Pg. 629-641

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theory, that is the population cycle and the cycle of public finance.19

From the 10 literature studies above, it can be concluded that almost no previous research has analyzed bilateral economic relations based on Islamic Economics. Some of them only study theoretically without empirical data, so the authors want to present a thesis that will integrate Bilateral Economic and Islamic Economics by taking evaluations that occur among the 10 journals above.

B. Theoretical Framework1. Bilateral economy

Every country has different natural resources, geographic location, climate, human resources, expertise, labor, price levels, economic and social structure conditions, not to mention when talking about politics and monetary policy of a country. The differences between each country certainly produce different results both in terms of quality and quantity. In this case, the results referred to the production of a country. Differences in production owned by each country indirectly require a country to make trading, either by reason of market expansion, obtaining resources, gaining profits, or obtaining more modern technology. Trade that involves countries, both two or more commonly referred to as international trade.20

International trade is trade carried out between countries or governments of countries with other countries that undergo a trade relationship that is in accordance with the agreement between the two parties that carry out international trade. According to Setiawan, international trade is trade carried out by residents of a country with residents of other countries on the basis of mutual agreement. The population in question can be between individuals (a person with

 19 Bahrul Ulum, “Kontribusi Ibnu Khaldun Terhadap Perkembangan Ekonomi Islam”, IQTISHODIA, Jurnal Ekonomi Syariah, Vol. 1, No. 2, September 2016, pg. 17-32

 20 MP. Todaro. Economic Development (5th ed.). 1994. New York, London: Longman. Pg. 19

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other individuals), between individuals and the government of a country or government of a country with the government of another country.21 International trade, especially exports, is believed to be the driving force in Indonesia’s economic growth, including those that embrace an open economic system in its economy where international economic traffic plays an important role in the Indonesian economy. There are several factors that encourage all

countries in the world to conduct international trade such as22 :

a. Obtaining goods that cannot be produced domesticallyb. Importing more modern technology from other countriesc. Expanding the market for domestic productsd. Profiting from specialization.

In the theory of international trade, several factors such as the advantages of specialization are seen as important reasons for promoting international trade among various countries, but a more important factor is the ability of these countries to produce goods that can compete in foreign markets.23 The existence of interrelation, dependence, and global competition above causes almost all of living things in a country affected by international economics, in other words in the era of globalization and free trade today, there can be no more “autarky”, which are countries that live isolated without having international trade relations ( export and import).24 The country’s decision to engage in free trade cooperation, whether in bilateral, regional or multilateral cooperation, basically is for the

 21 Heri Setiawan, Sari Lestari. Perdagangan Internasional. (Yogyakarta: Pustaka Nusantara, 2011) Pg. 2.

 22 Sadono Sukirno. MakroEkonomi Teori Pengantar, (Jakarta: PT. Raja Grafindo Persada, 2012). Pg. 381

 23 Sukirno Sadono. MakroEkonomi Teori Pengantar...., Pg. 381 24 Hamdy Hady. Ekonomi Internasional: Teori dan Kebijakan Keuangan

Internasional. (Jakarta: Ghalia Indonesia: 2001). Pg. 17

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country’s economic interests such as increasing national income, expanding markets, and so on. But according to Todaro, outside of these economic interests, a country decides to participate in free trade cooperation tends to be caused by a sense of concern being underdeveloped compared to other regional countries or countries.25

One form of international economic cooperation is the bilateral economy. Bilateral itself comes from the word “bi” which means two so that it can be said that bilateral means the cooperation between two countries. In general, the definition of bilateral economic cooperation is an economic cooperation between two countries which is expected to improve the welfare of countries involved in trade agreements, namely by relying on commodities that have comparative advantages and competitive advantages, it is not strange if the two countries pay attention to the economy bilateral tend to have the same needs. The purpose of bilateral economic cooperation also varies for each country, regardless of the national interests of each country to establish relations and cooperation between the two countries and not only depend on countries that are close but also geographically distant countries.26 Thus, with the Trade Liberalization discourse by the World Trade Organization (WTO), basically it becomes its own challenges and solutions in creating a bilateral economy between countries, so that, according to Jeffrey J. Schott, integration of bilateral economic relations is believed to be the first step for the country countries to liberalize multilateral trade27.

25 M.P. Todaro. Economic Development…... Pg. 21-22 26 Agita Suryadi, “Kepentingan Indonesia Menyepakati Kerja Sama Ekonomi

Dengan Slovakia Dalam Bidang Energi dan Infrastruktur”, JOM FISIP Vol 2 No 2 Oktober 2015, Pg. 07

 27 Robert McMahon, The rise in Bilateral Free Trade Agreements, 2006. (accessed from Council of Foreign Relations: http://www.cfr.org/trade/rise-bilateral-free-trade-agreements/p10890 accessed on 17 August 2018, 10:21)

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Bilateral economy stands on several formulas that strengthen 2 countries wanting to conduct bilateral cooperation in the economy. The formula is illustrated by several basic theories in international

trade, namely:

a. The Import Demand TheoryThere are so many theories that discuss the theory of

demand because this includes the basis for conducting trade. Economic reviewers together examine the theory of demand and the factors that influence demand, which is urgently needed in stabilizing the short-term economy.28 The demand theory basically explains the relationship between the amount of price and demand. Iskandar Putong explained that demand is the number of items requested in a particular market with a certain price level at a certain income level and within a certain period.29 Moreover, Rahardja and Manurung write that demand is the desire of consumers to buy an item at various price levels for a certain period of time. Simply put, all the theories above will hypothesize in the law of demand which reads: The lower the price of an item, the more demand for the item, conversely the higher the price of an item, the less demand for the item assuming ceteris paribus (all factors other than the price are considered constant).30

Imports are activities to incorporate goods or commodities into the territory of a country both in a normal series of trade and as a personal action.31 Whereas according to Undang – Undang

 28 Nicholas Gregory Mankiw. Teori Makroekonomi Edisi Kelima. Translated by Imam Nurmawan. (Jakarta: Penerbit Erlangga, 2003), pg. 36

 29 Iskandar Maulana, Tri sukirno, Putro Darmayuda. “Analisis Perdagangan…. pg. 5.

 30 Antoine Augustin Cournot, Researches into the mathematical principles of the theory of wealth, (USA: Norwood Press, 1897), pg. 427

 31 Nopirin, Ekonomi Moneter, Buku 2 Edisi 1. (Yogyakarta: BPFE, 1996), pg. 20-21

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No. 10 Tahun 1995 in customs law, the import is the activity of entering goods into a customs area, which is Indonesia. Imports are often carried out as an alternative policy to meet domestic demand for goods if domestic production of goods is inadequate. With the import activities, producing countries with abundant production and exceeding domestic demand can fulfill the demand for imports in an inadequate country so that production continues.

Mankiw explained that the law of demand which is only influenced by the price of goods is incorrect because it only focuses on price alone as the only determinant of demand.32 Logically, demand is a multivariate relationship, which is determined by many factors simultaneously. For example, in import demand, there are many other factors that determine someone, a company or country affected in importing such as international trade policies in importing countries, international trade policies in exporting countries, inflation, exports of other countries and other related factors that can shift import function. In his book, in general, Mankiw wrote the formula theory of demand with:

Qd = fm (Px , Py , Qpend , Ysociety, T, F, ......)Description:Qd = Number of items requestedfm = Import demand factorPx = Price of goods itselfPy = Price of other goodsQpopulation = Total quantity of populationYsociety = Average income of the community per capitaT = Taste of society

 32 Mankiw, Teori Makroekonomi…, pg. 39

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F = Forecast of conditions in the future

... = etc.There have been many quantitative studies to analyze

import performance and the factors that influence it. Some of

the factors that influence import demand are:

1) The price of the goods themselvesIn accordance with the law of demand that the

number of items requested changes in the opposite direction with a nominal change in prices, and it’s causing the success of the application to be indicated by changes in the number requested in the opposite. The price of cheaper goods will attract the public or consumer to buy these items rather than buying similar goods at a higher price, in addition to the

cheaper price of an item will increase the income of buyers.

2) Prices of other goodsConsumer demand can be influenced by price, price

of goods to be purchased, price of replacement goods, and prices of complementary goods. Consumers will limit the purchase of the desired amount of goods if the price of goods is too high, then creating the possibility of consumers moving their consumption and purchases to substitute goods that are cheaper in price. The price of complementary or alternative goods from the main item will also influence the decision of a consumer to buy or not the main item, if the demand for the main item increases, the demand for the

replacement item will decrease and vice versa.

3) PopulationIncrease in the population that occurs in an area

will cause an increase in demand. However, increasing or decreasing population does not necessarily lead to increased

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demand, but usually, population increases are followed by developments in employment opportunities. Thus more people receive income and this will increase purchasing power in the community, then the addition of purchasing

power will increase the number of requests.

4) Average community income per capitaBuyers’ income is also a very important factor in

determining the demand for various goods. Because, in the demand for an item in general, the higher the income, the greater the demand for goods that will be consumed, meaning that the higher the income, the demand will increase. Thus, changes in income will encourage consumers to change the demand for their goods. The import function based on income factors is written by Sukirno with a formula::33

M = Mo + mYDescription:M = Import ValueMo = Autonomy Import, determined by factors

other than national income such as protection policies and competitiveness of other countries in importing countries

mY = biases import marginal, which is the percentage of additional income used to buy imported

goods.b. The Export Demand Theory

Literally, exports are the opposite of imports. According to Mankiw, exports are producing various kinds of goods and services and then selling them abroad.34 Another definition

 33 Sadono Sukirno, MakroEkonomi Teori Pengantar…., Pg. 364 34 Mankiw, Teori Makroekonomi…, pg. 52

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states that exports are an effort to issue goods from circulation in the community and send them overseas according to government regulations and expect payments in foreign currencies. 35 According to the 1998 Trade Law concerning General Provisions in the Export Sector, Number 182 / MPP / KEP / 4/1998 (Ketentuan Umum di Bidang Ekspor, Nomor 182/MPP/KEP/4/1998), exports are activities to issue from the Customs Area.36 Exiting from the customs area means leaving the jurisdiction of Indonesia.

In essence, there is not much difference between the theory of demand for imports and also exports among many experts. Factors and functions of exports also tend to be the same as imports. Export demand from a country is import for another country so that it can be said that both are two sides of the paper or recto-verso that are inseparable. This factor can be divided into domestic factors and international market factors. Domestic factors include production capacity, prices in the domestic market, and various domestic policies. On the other hand, some factors which are originating from international markets include prices in the international market, exchange rates, and demand side of the importing countries of Indonesian products. There is one theory from Batiz FL and Batiz LA which actually tends to be the same as Mankiw’s theory, but they only focus on export demand which is influenced by the real price and real income of the destination country.37 Their opinion

about the factor of export demand theory can be written as:

 35 Amir. MS, Strategi Memasuki Pasar Ekspor. (Jakarta: Lembaga Manajemen PPM dan Penerbit PPM,2004), pg. 1

 36 Keputusan Menteri Perindustrian dan Perdagangan, EKSPOR – KETENTUAN UMUM, NO.182/MPP/Kep/4/1998, pg. 1

 37 Rivera Batiz, FL, & Rivera Batiz, LA International finance and open economy macroeconomics (2nd ed.), (New York: Macmillan Publishing Company, 1994), pg. 340

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X = X (q, Yd)Description:X = quantity of export demand for the destination country

(D)q = relative price (ratio between the price of goods in

country D to country C (origin)Yd = income of destination country.

From the above function, it can be concluded that the price increase in the country of origin will reduce the quantity of export demand and conversely the increase in prices in destination countries will increase export demand. The increase in income Yd represents the increased well-being of the country of destination that will increase consumption, which will

ultimately increase the demand for exports.

c. DistanceThe distance in bilateral perspective is a burden on the

transportation costs faced by a country in exporting to a country that it cooperates bilaterally with. Dilanchiev explained that distance is a bilateral measure between the two countries.38 Transportation costs are one of the inhibiting factors for international trade. Distance increases the cost of international goods and services exchange transactions.39 The farther apart from one country with another, the greater the transportation costs in the trade between the two. With the transportation costs, the profits received by a country from international trade are getting smaller.

The distance between an exporting country and its trading destination country has a negative relationship with the

 38 Azer Dilanchiev, “Empirical Analysis of the Georgian Trade Pattern: Gravity Model”, Journal of Social Sciences, 1 (1): 75-78,2012, pg. 76

 39 Iskandar Maulana, “Analisis Perdagangan Bilateral Indonesia dengan... pg. 8

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demand for an item, ceteris paribus40. That means, if the distance between the countries is getting farther away, the number of items requested will drop. In addition, transportation costs will increase if the distance between the two bilateral countries is further away, which in turn will increase the prices of goods and

services traded.41

d. Costs and TariffsThe oldest bilateral economic policies in history

are tariffs and fees, which have been used as a source of government revenue for a long time ago. The policy of a country’s government in making the country have import or export tariffs is called the policy of tariff barriers, and instead of the opposite, it is called a non-tariff barrier policy. In terms of the origin of commodities, there are two types of tariffs, namely import tariffs, i.e. the taxes for imported goods and services and export tariffs (export tariffs), i.e. taxes on exported goods and services.42 Today, tariff in terms of type is divided into three.43 First, Ad Valorem rates, which are taxes based on the value of a transaction or property, not according to scales, sizes or units, can be said simply, the rate charged is based on a percentage number certain value of imported goods.44 Second, opponents of Ad Valorem i.e. Specific Tax (specific tariff), which excise goods are specific and particular to goods that, even though the goods were actually able to get into a classification that is written

 40 Indah Sri Wulandari, “Perbandingan Ekspor Kopi Dua Pemasok Utama Dunia Indonesia dan Brazil: Sebuah Analisis Ekonomi Data Panel 2001 – 2006”, Jurnal Unisia, Vol. XXXIII No. 73, July 2010, pg. 8

 41 Azer Dilanchieve, Empirical Analysis ...., pg. 77 42 Iskandar Maulana, “Analisis Perdagangan Bilateral Indonesia dengan..., pg. 7 43 Nopirin, Ekonomi Internasional, (Yogyakarta: BPFE-Yogyakarta, 2013), pg. 52 44 A. Husni Malian, Chaerul Muslim, and Erwidodo, “Penetapan Tarif Impor Dan

Implikasi Ekonominya Dalam Perdagangan Beras di Indonesia”, Forum Penelitian Agro Ekonomi, Volume 17. 1 July 1999: pg. 32

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in the determination of Ad Valorem but instead is determined by each country’s policy. Finally, mixed rates (compound tariff), which are simply a combination of the two terms above.

Tariffs and fees certainly affect the decline and increase in domestic consumption of domestic production, the increase in prices of imported goods and the decline in demand for goods due to rising price changes. As a result of this price change, consumers in the importing country get a profit, while producers in the exporting country suffer losses.45 In terms of the government, the reduced volume of imports due to import tariffs grew additional income for the government in the form of taxes, as well as the occurrence of income retribution from domestic consumers. Conversely, export is a tax for a commodity exported, because the money comes from outside the country with the exported commodity. With the imposition of large import duties, country revenues will increase while it’s also limiting consumer demand for imported products and

encouraging consumers to use domestic products.

e. The Standard Model of International TradeThe international trading model is actually relatively

connected to the country in which the transaction takes place, weighed from people’s preferences, government policies and education, sensitivity in seeing opportunities for trading internationally and so on. The export price relative to the import price, then the trade exchange rate of a country which is determined by actual supply intersections relative to the

demands of other countries and so on.46

 45 Paul R. Krugman and Obstfeld Maurice. International Economics Theory and Policy, Ninth Edition. (Boston: Pearson, 2012), pg. 223

 46 Paul R. Krugman, “On the Relationship between Trade Theory and Location Theory”, Review of International Economics 1 (2), 110-122, 1993, pg. 118

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In addition, as Muslims, we are familiar with conventional economic concepts, namely economics that should be extraneous to Muslims, especially Indonesia47, although in the field it does not show that. The biggest criticism given by Islam to the conventional economy is in terms of usury (Riba) which is forbidden in Islam but exists in the conventional economy. In addition, in terms of international trade, the existing theories nowadays are burdening the developed countries and are unfair according to Islamic principles. Some theories of international trade from conventional economics

are:

a. Mercantilism TheoryMercantilism is a group that reflects the ambition and

ideologies of commercial capitalism, as well as views on a country’s prosperity politics which aimed at strengthening the country’s position and prosperity beyond individual prosperity. The International Trade Theory of Mercantilism developed rapidly around the 16th century based on the idea of developing a national economy and economic development, by seekin g the number of exports to exceed the number of imports. In the foreign trade sector, mercantilism policy is centered o n the following two main ideas:48

1) Fertilization of precious metals, the goal is the establishment of a strong national state and fertilization of national prosperity to maintain and develop the country’s strength.

2) Every trade politics is intended to support the excess of exports above imports (the active trade balance). To obtain an active trade balance, exports must be encouraged and imports must be limited. This is because the main purpose

47 Hendri Tanjung. “Kritik Ekonomi Konvensional dan Solusi Ekonomi Islam”. Jurnal Studia Islamika, Vol. 11, No. 2, December 2014: Pg. 278.

 48 Hady Hamdy. Ekonomi Internasional..., pg. 24

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of foreign trade is to obtain additional precious metals. Other mercantilism policies are procedures in business for trade monopolies and other related ones, in their efforts to obtain colonies to market industrial products. The pioneers of Mercantilism Theory included Sir Josiah Child, Thomas Mun, Jean Bodin, Von Hornich and Jean Baptiste Colbert.

b. The Absolute Theory of ExcellenceThis theory was put forward by Adam Smith. In the

theory of absolute excellence,49 Adam Smith developed the

following ideas:

1) The existence of the Division of Labor (International Labor)In producing a kind of goods with the division of

labor, a country can produce goods at a cheaper cost than other countries, so that in conducting trade the country

gained an absolute advantage.

2) International Specialization and Production EfficiencyWith specialization, a country will specialize in the

production of goods that have profits. A country will import goods, that when this country produced itself is not efficient or less profitable, so the absolute advantage is obtained when a country entered specializes in producing goods. So, absolute profits occur when a country is superior to one type of product produced, with production costs cheaper

compared to production costs in other countries.

c. Comparative Theory of Excellence The theory that belongs to David Ricardo is a revision

of Adam Smith’s theory of absolute excellence. Through this comparative advantage theory, Ricardo can provide a clearer

 49 Iskandar Maulana, Tri sukirno, Putro Darmayuda. “Analisis Perdagangan Bilateral Indonesia …, pg. 4.

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understanding of the concept of international trade while perfecting Adam Smith’s theory. This theory argues that international trade can occur even though one country does not have an absolute advantage, provided comparative prices in the two countries are different. Based on the theory, Ricardo tries to explain that international trade can still provide gains from trade for the country, regardless of whether the country concerned has an absolute advantage over another country or not. In his theory,

Ricardo said,

“a nation, like a person, gains from trade by exporting the goods or services in which it has its greatest comparative advantage in productivity and importing those in which it has

the least comparative advantage.” 50

Based on this explanation, Ricardo tried to explain that international trade has a positive impact on a country through two ways, firstly, international trade as a means of indirect production and secondly, as a way to get trade gains (the gains from trade).

The principle of comparative advantage theory is that a nation can increase its living standards and real income through the specialization of commodity products where the concerned has the highest productivity.51 Based on the theory of comparative advantage, international trade between countries benefits both parties if each country produces and exports products whose competitiveness is controlled,52 even if one country has absolute advantages, provided that each country has

 50 Peter H. Lindert, Thomas A. Pugel. International Economics Tenth Ed (Amerika Serikat : Irwin, 1996), Pg. 33-34

51 Iskandar Maulana, Tri sukirno, Putro Darmayuda. “Analisis Perdagangan Bilateral Indonesia…, pg. 5

 52 Paul R. Krugman, Obstfeld Maurice. Economy International..., pg. 17

26

a difference in productivity (production comparative advantage ) or the efficiency comparative advantage and function of the

factors of production or labor.

d. Heckscher-Ohlin Excellence Theory (HO)The idea of this theory states that the main source of

international trade is the difference in the gift of resources between count r ies becomes one of the most influential theoretical f o undations in international economics. His own theory was developed by Eli Heckscher and Bertil Ohlin that called the theory of factor proportions. In this theory states that each country h as a number and different production factors. This difference causes differences in prices for the same goods between countries with each other. Countries that have relatively large or inexpensive production factors in producing it will do production specialties and export their goods. On the contrary, each country w ill import certain goods if the country has a relatively rare or expensive production factor in producing it. Establishing a certain cost for a country will get the maximum product or at a minimal cost, a country can produce a certain number of products.53 By ignoring the technology perspective, on the hand, HO emphasizes the production and use of these factors relat i vely intensively in the production of exported

goods.54

Unfortunately, from every theory of international trade belonging to a conventional economy, they have many weaknesses. The theory of mercantilism gave birth to the notion of capitalism by saying that the country or king would be strong with the increasing number of precious metals. In its

 53 Hady Hamdy. Ekonomi Internasional..., pg. 39 54 Iskandar Maulana, Tri sukirno, Putro Darmayuda. “Analisis Perdagangan Bilateral

Indonesia…., pg. 5

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development, this mercantilist opinion had a negative impact in the form of inflation pressure for the development of the domestic economy and received criticism from David Hume in The Price Specie Flow Mechanism55. Adam Smith’s theory of absolute excellence is also considered too simple by using the theory of labor without thinking about the essence of the superiority of an item, which is directly criticized by David Ricardo who spawned the theory of comparative advantage. The comparative theory also has weaknesses because it can only be developed in developed countries and weakens the country’s economy. In the real world, we can see that many developing and poor countries do not dare to enter the world of international trade not because they do not have a comparative advantage over other countries, but because there is a misconception of the theory of comparative advantage. Developing and poor countries are sometimes too busy looking at and seeking their absolute superiority to other countries, even though international trade can actually be carried out - even it is profitable - without the absolute advantage of a country. This misconception, for example, according to Krugman and Obstfeld, can be seen from a columnist’s statement in the Wall Street Journal in 1983 which said, “Many small countries have no comparative advantage in anything”56 Then the theory of HO excellence also has several weaknesses such as ignoring technological differences and assuming there is no international mobility.

Below is a picture that summarizes the description of Bilateral Economic Relations:

 55 Robert W. McGee, “The Economic Thought of David Hume”, Hume Studies, Volume 15, Number 1 (1989), pg. 194

 56 Paul R. Krugman and Obstfeld Maurice. International Economics …, pg. 21

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Figure 2.B.1 Bilateral Economy in contemporary times (SUMMARY)

2. Bilateral Economy according to IslamDefinition of Bilateral Economy according to the

conventional theory above is different from the concept according to Islam, especially from its system. Bilateral Economy according to Islam strongly reflects justice in relations between the two countries. Islam has long been determined by Rasulullah S.A.W regarding import duties, excise and transportation calculations to calculate fair regional or international trade and mutual respect for each other.

Islam exists as a solution for humanity, even before the conventional theories above were created. In Islamic economics, welfare is measured based on the principle of fulfilling the needs of each individual society, not on the basis of supply and demand, economic growth, foreign exchange reserves, currency values or

Bilateral Economy

Introduction

Factors

International Economic

Cooperation

Conventional Concepts

Mercantilism Theory

Absolute Theory of Excellence

Comparative Theory of Excellence

HO Theory

x

x

Basic Theory Import Demand Theory

Export Demand Theory

Distance

Costs and Tariffs

Standard Model of International Trade

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indices (index) of prices in non-real markets.57 In international trade, Ibn Khaldun, a Muslim who was called the Father of the World Economy that wrote in the book Mukadimah, said that traders who are professional in business will not move the commodity of commerce but if the commodity is needed by many people from various circles, both wealthy, indigent and needed by the market.58 Ibnu Khaldun asserted that a country’s wealth is not determined by the amount of money in the country.59 According to him, country wealth is determined by two things, firstly, the level of domestic production and second, the positive balance of payments of the country. He also said that the positive balance of payments would increase the country’s wealth due to the positive balance of

payments that illustrates into two things:

a. The country’s production rate for a type of commodity is higher than the country’s domestic demand, or supply is greater than demand, so it’s allowing the country export.

b. The country’s level of production efficiency is higher compared to other countries. With a higher level of efficiency, the commodity of a country is able to enter other countries with

more competitive prices. Furthermore, Ibn Khaldun explained that export traders

also should do so, by issuing commodities that are only suitable in certain country markets, by simply adding prices for the best quality of goods for wealthy entrepreneurs, or by measuring the distance of trade trips. So herein lies the solution offered by Islam, namely a balanced economic system or equilibrium (wasathiyah). Islam does

 57 Abul Hasan Ali ibn Ahmad ibn Muhammad Al-Wahidi, Muqaddimah Tafsīr al-Wajīz. 1992. Via the Maktabah Syamilah application, Version 2, pg. 11.

 58 Ibn Khaldun. Mukaddimah, translated by Masturi Ilham MC, Cet II; (Jakarta: Library Al-Kautsar, 2001). Pg. 715

 59 Ibn Khaldun. Mukaddimah..., pg. 715

30

not abuse the weak as happens in a capitalist society but also does not abuse the rights of individuals and rich groups as in the system of socialism-communism. That is why Islamic Economics chooses the path of justice in achieving social welfare.

The real purpose of international trade in Islam is to create benefit among human beings between countries and become a way of helping each other. In order to achieve this benefit for 2 or more of these countries, Dr. Jaribah bin Ahmad Al Haritsi author of the economic fiqh book Umar bin Al Khattab said that in order for international economic relations to realize the greatest possible benefits for Muslims and keep them away from the harm that will

occur, the relationship must fulfill the following code of ethics:60

a. First, halal goods and services in the place of trade; b. Second, international economic relations can realize the benefit

of the Muslims; c. Third, making Islamic territories a priority; d. Fourth, the regulation of the entry and settlement of non-

Muslims on Islamic soil; e. Fifth, trade agreements; f. Sixth, the Islamic country should have the authority to regulate

and supervise foreign economic relations; g. Seventh, the regulation of economic activities must be led by a

Muslim.Besides Ibnu Khaldun, there are many more names of

scholars who discuss international trade and especially bilateral economics, one of them is Abu Ubaid in his book Al-Amwal.61 Abu

 60 Atep Hendang Waluya, “Perdagangan Internasional Dalam Islam”, Majalah Tabligh, NO. 4/XIV, 2016, pg. 56

 61 He was a great scholar named Abu Ubaid bin Salam bin Miskin bin Zaid al-Azdi (Arabic: أبو عبيد القاسم بن سلام الخراساني الهروي) who had highlighted the practice of international trade, especially exports and imports. Born in 774 AD in Herat, Afghanistan and died 838 AD at the age of 67 years, making it one of the scholars who lived in the golden age of

31

Ubaid was the first person documenting economic activities at the time of the Prophet Muhammad, the Rashidin khulafaur, his friends and tabi’it-tabiin, including the highlights of this international trade practice, especially imports and exports. The thought of Abu Ubaid on import-export can be divided into three parts, they are the absence of zero tariffs in international trade, excise for basic food

items is cheaper, and there are certain limits for excise duty.62

Below is a picture that summarizes the description of a Bilateral Economy according to Islam:

Figure 2.B.2 Bilateral Economy According to Islam (SUMMARY)

3. Bilateral Economy in the Islamic PeriodSince the birth of Islam until now, either recognized or

not, actually it has produced knowledge about international trade, especially bilateral economics. Even though at that time, economics

Abbasid. Abu Ubaid is actually better known as a scholar in the Arabic language, and is

also an expert on NahwuHis famous creation was Kitab Al-Amwal which is his writing about Islamic state

financial jurisprudence. This book is very rich in economic history from the first half of the second century hijri, as well as a summary of the original traditions of the prophet, sahabi and tabi’in about economic matters, making him the first person to photograph economic activities at the time of the Messenger of Allah, khulafaur Rasyidin, sahabi and tabi’it-tabi’in. The thought of Abû Ubaid about this can be seen in his book, Al Amwāl which he wrote almost 1000 years before Adam Smith (1723-1790) spawned the theory of absolute

excellence.Read: Nur Chamid, Jejak Langkah Sejarah Pemikiran Ekonomi Islam, Yogyakarta:

Pustaka Pelajar, 2010, pg. 175 62 Naf’an, Ekonomi Makro Tinjauan Ekonomi Syariah, (Yogyakarta: Graha Ilmu,

2014), pg. 264.

Bilateral Economy according to Islam

Introduction Principle Purpose Figure Ibnu Khaldun

Dr. Jaribah

Abu Ubaid

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was not stand-alone as a scientific discipline but it joined with various other sciences such as sociology, politics and so on, otherwise, that did not mean economics in the Islamic world was a sudden coming in this generation of Muslims right now. The proof is that many Islamic thinkers and leaders contribute to producing works about the economy even though most of them do not focus on one point, such as Abu Yusuf (died.182 H), Al-Syaibani (died. 189 H), Abu Ubaid (died. 224 H), Yahya bin Umar (died. 289 H), Al-Mawardhi (died. 450 H). Al-Ghazali (died. 505 H), Ibn Taymiyyah (died. 728 H), Al Syatibi (died. 790 H), Ibn Khaldun (died. 808 H), Al-Maqrizi (died. 845 H) and so on.63 The following are thoughts on bilateral economics in the phase of Islamic civilization to the

contemporary era today:

a. First Period (Early Islamic Period - 450 H / 1058 AD)In Pre-Islamic times, or before Islam was present as a

political power, the geographical conditions of the Hijaz region were very strategic and profitable, because it became a trade route between Persia and Rome and the colonies of both, such as Syam (Syria), Ethiopia and Yemen. Trade through this route is the result of Hasyim’s effort to obtain an agreement and permission from the kings of Rome, Persia, Ethiopia, and Yemen for the tribe of Quraysh. Furthermore, trade through this route developed and the Quraysh tribe gained a lot of profits and wealth.64

After the Prophet’s migration (Hijrah) to Yathrib (Madinah), the Prophet made many changes in this city, from a political, constitutional perspective, including the economy.

 63 Nur Chamid, Jejak Langkah Sejarah Pemikiran Ekonomi Islam, (Yogyakarta: Pustaka Pelajar, 2010), pg. 3

 64 Adiwarman Azwar Karim, Sejarah Pemikiran Ekonomi Islam Edisi Ketiga, Cet Ke-4 (Jakarta: Raja Grafindo Persada, 2010) pg. 156-157

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In the mosque called the Masjid Nabawi, all country affairs including country affair financial, the economy, both domestic relations international have been carried out there.65 To create political, economic and religious relations, history proves that the Prophet Muhammad, since the third year of Hijri has sent several envoys to other countries. For making a perfect service to foreign traders who want to export their goods to Madinah or simply pass and in creating a sense of security towards them, the government of the Prophet also gets ‘ Ushr then, i.e. the import duties imposed on them and must be paid once a year only for goods which the value is more than 200 dirhams.66 The Prophet himself is also an extraordinary trader, where in the business world, he has carried out trade expeditions to 17 countries such as Yemen, Basrah and others.67

In the era of the khulafaur Rashidin, there were not many changes in bilateral trade. During the reign of Umar ibn Al-Khattab, he expanded a lot until Islamic territory covered the Arabian Peninsula, parts of Roman rule (Syria, Palestine, and Egypt), and the entire territory of the Persian empire, including Iraq. It’s also happened to the government of Utsman ibn Affan and Ali ibn Abi Talib that both of them was expanding their territory to create bilateral relations in trade with other countries.68 Likewise in the time of Bani Umayyah, not much change from Islamic thinkers and leaders at that time. Something new happened when Caliphate Abbasid’s era, on the golden age of

 65 Kailani, “Islam Dan Hubungan Antarnegara”, Jurnal Ilmu Agama, 2013, Nomor 2, 99-118, pg. 103.

 66 Nur Chamid, Jejak Langkah Sejarah..., pg. 50 67 Afzalurrahman, Muhammad Sebagai Seorang Pedagang, Cet Ke-3. (Jakarta:

Yayasan Swarna Bhunny, 1997), Pg. 11Also read: Muhammad, Etika Bisnis Islami, (Yogyakarta: UPPAMPYKPN, 2004),

pg. 15 68 Nur Chamid, Jejak Langkah Sejarah..., pg. 93

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Harun al-Rashid and al-Ma’mun that the City of Baghdad being crowded by traffic trade between countries, making it a huge economic center throughout Middle East Asia.69 The breadth of the territory encourages commodity turnover and exchange to become crowded. Especially the former colonies of Persia and Byzantium which held great economic potential.

During this period, some famous Islamic thinkers also discussed international and bilateral trade such as Abu Yusuf,70 who discussed Usyr in his famous book Al-Kharaj71. Then there was also Abu Ubaid who first highlighted the activities

of the Prophet and the Companions about exports and imports.

b. Second Period (450 H - 1350 H / 1058 M - 1932 AD)This phase is a brilliant phase for economic thinkers

where scholars like to compile scientific concepts including economics, although at this phase, they were confronted with the tragic reality in politics and government with the turn of the Caliphate, the collapse Abbasids, Ottoman Empire and some other Khilafah, the drama of corruption that has spread and so on.72 But fortunately, in this phase too, the pattern of expansion is also not only for the interests of da’wah and regional expansion, but also for trading. Lots of literature and historical evidence that proves the international movement of Arab traders by land

 69 GE Von Grunebaum, Classical Islam: A History 600-1258, (New Brunswick dan London: Transaction Publishers, 1970), pg. 90

 70 He was Yaqub ibn Ibrahim al-Ansari who was born in 738 M / 117 H in Kufa Iraq and died in 798 AD / 181 H with the Hanafi school of thought. He served as chief judge (qadi al-qudat) during the reign of Harun al-Rashid. His most famous work is Kitab al-

Kharaj, a treatise on taxation and state fiscal problems.Read: Nur Chamid, Jejak Langkah Sejarah..., pg. 153 71 Nurul Hidayati, “‘Usyur dan Jizyah dalam Kajian Ekonomi Islam”, Tawazun:

Journal of Sharia Economic Law, Volume 1, Nomor 1, Maret 2018 pg. 75. 72 Nur Chamid, Jejak Langkah Sejarah..., pg. 217

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and sea. For example, in the government of Mamalik, Syafawi, and Mughal, where many Arabic and Islamic traders reached the Southeast Asian region, including in the Aceh region and the Malacca Strait as an international port at that time.

Some Islamic thinkers also contribute in analyzing the Bilateral Economy. One of them was Al-Ghazali73 who was said to be crazy about science and made him one of the best thinkers of Islam. In bilateral economics, he explained how traders should focus on the needs of the transportation used and cutlery brought in for trade between regions.74 From here, the community and traders must weigh profits rather than the trade that has already passed the distance between these regions.

There is also Ibn Khaldun whose contribution in the science of Islamic Economics is undoubted, although unfortunately he was born during the time of Islam was experiencing a setback and slowdown. But, his knowledge, observation, and analysis of international trade make it one of the references for deepening the bilateral economy. In international trade, according to him, community satisfaction, merchant profits and country wealth all

increased.75 His decision to trade across countries was:

 73 He is Hujjatul Islam Abu Hamid Muhammad bin Muhammad al Ghazali ath-Thusi asy-Syafi’i who was born in Thus; 1058/450 H and died in Thus; 1111/14 Jumadil Akir 505 H at age 53. He was a Persian Muslim philosopher and theologian, known as Algazel in the Middle Eastern world. Imam Al-Ghazali was a scholar, thinker, prominent Islamic philosopher who contributes greatly to the development of human progress. He once held the position of Vice-Counselor at Madrasah Nizhamiyah, a center of higher

learning in Baghdad.Read: William Montgomery Watt, Muslim intellectual: a study of al-Ghazali.

(Edinburgh: University Press, 1971), pg. 1 74 Adiwarman Azwar Karim, Ekonomi Islam Suatu Kajian Kontemporer, (Jakarta:

Gema Insani Press, 2001), pg. 158 75 Ibnu Khaldun. Mukaddimah. Translated by Masturi Ilham MC, Cet II; (Jakarta:

Pustaka Al-Kautsar, 2001). pg. 715.

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1) Cheaper than producing internally2) Better quality

3) Really a new productWe also need to remember the contribution of the

Ottoman Empires as the last kingdom of Islam in terms of trade. In Western Europe, the territory of the Ottoman Empire is commonly also referred with Turkish Empire, covered the Balkan Peninsula in the southern part of the Danube and Sava Rivers and the central plains of Hungary to the north. In Asia, the Ottoman Empire developed eastward from the Bosphorus to the mountains bordering Iran. And, in the south to the upstream part of the Gulf to Yemen in the southwest of the Arabian Peninsula. In Africa, the royal land consists of the western part of the Red Sea, the rich provinces of Egypt, and Tripoli’s outermost semiotonomy post, Tunisia and Algeria. In the Mediterranean of Cyprus and most of the islands of the Aegean archipelago that Ottoman possesses.76 With this vast expanse, bilateral relations will certainly occur frequently in Turkey this Ottomans in the Age of the Ottoman Sultan (Bayezid I, 1389-1402) in making bilateral relations with the Serbian Empire. Entering the early 19th century, there were several changes in the government policies of the Ottoman Empires. Some historians argue that changes in relations between Ottoman Empires and Central Europe were created by the opening of new sea routes. Historians could have considered the decline of land traffic to the east after Western Europe opened a sea route away from the Middle East and Mediterranean parallel to the decline of the Ottoman Empire itself.77 The English-Ottoman Treaty, also

 76 Hamish Scott, The Oxford Handbook of Early Modern European History, 1350-1750: Volume II: Cultures and Power, (United Kingdom: Oxford University Press, 2005), pg. 612

 77 Donald Quataert, The Ottoman Empire 1700–1922, (Binghamton: Cambridge

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called the Balta Liman Agreement, which opened the Ottoman market to its rivals in England and France could be seen as one of the challenges of Ottoman economic development in cooperating with other countries, as well as the beginning of the Ottoman Empire economic freedom. Unfortunately, Islamic economists and politicians at that time were not sensitive to the desires of the dynamics and principles of capitalist economics and the trade economy that developed at that time in Western Europe.78 In this phase, the people really witnessed the West far outperform them.

In the days of the Ottoman Empire, the fuqoha only wrote records of their predecessors and issued fatwas which were in accordance with the rules standard of the 4 schools. In this phase, most of the scholars seemed at that time to be closed by the door of ijtihad (Independent Judgment) which resulted in this phase known as the Stagnation Phase.79 Although the glory of education, idea, economics, social, political and other fields has decreased, but there are economic thinkers weighty in the last 300 years before the fall of the Ottoman Empire , such as Shah Walullah (1703 AD - 1762 AD), Ibn Nujaym (1520 AD-1563 AD ), Ibn Abidin (1784 AD - 1836 AD), Ahmad Sirhindi (1564 AD - 1624 AD), Muhammad Iqbal (1877 AD - 1938 AD), Jamaluddin Al-Afghani (1838 AD-1897 AD) and Muhammad

bin Abdul Wahab (1703 M - 1791 AD).

c. Third Period (1350 H - Now / 1932 AD - Present)

University Press, 2005), pg. 24 78 MA Cook, Studies in the Economic History of the Middle East: from the Rise of

Islam to the Present Day, (London: Oxford University Press, 2004), pg. 218Also read: Halil İnalcık; Donald Quataert, An Economic and Social History of the

Ottoman Empire, 1300–1914, (United Kingdom: Cambridge University Press), 1994, pg. 49

 79 Adiwarman Azwar Karim, Sejarah Pemikiran Ekonomi Islam….,Pg. 21

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Exploring the aftermath of the collapse of the Ottoman Empire, Muslim countries are physically managed to free itself from colonialism and Western colonialism in the 20th century.80 The fierce thought of the time between the doctrine of capitalism and communism made it seem as though there were no other choices except between these two option. In fact, Islam which first came into existence actually became a real solution, in addition to more intellectuals at this time consistently contributing the fruits of their thoughts to the economy, including the bilateral economy.

Some scholars try to understand more about the importance of international trade. Like Abu A’la Al-Maududi81 who emphasized the importance of a fair distribution system, considering that there is nothing in the universe, in all countries in the world, having exactly the same two things, in terms of

price, technology, quality, quantity and so on.82

Below is a picture that summarizes the description of

Bilateral Economy in the Islamic Period:

 80 Nur Chamid, Jejak Langkah Sejarah….., pg. 306 81 He was Sayyid Abdul A’la Maududi (Urdu: سيد ابو الاعلى مودودی - spelling alternative

last names: Maududi and Mawdudi) born on 25 September 1903 and died on 22 September 1979 also known as Mawlana (Maulana) or Sheikh Sayyid Abul A’la Maududi. He was a Pakistani Sunni journalist, theologian and political philosopher, and major 20th century Orthodox Muslim thinker. He was also a political figure in his country (Pakistan), where a

party Islamic Jamaat Al-Islami was founded. Read: Kate Zebiri. “Review of Maududi and the making of Islamic Revivalism”.

Bulletin of the School of Oriental and African Studies, University of London, Vol. 61, No. 1. (1998), pg. 167-168

 82 Sugeng Santoso, “Sejarah Ekonomi Islam Masa Kontemporer”, AN-NISBAH, Vol. 03, No. 01, 2016 pg. 75

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Figure. 2.B.3. Bilateral Economy in the Islamic Period (SUMMARY)

4. Bilateral Economy in contemporary timesAlmost all countries currently carry out the Bilateral

Economy. For the realization of a good International trade system, it is necessary for an institution to head it. So, to make it happen. the WTO (World Trade Organization) was born on January 1, 1995, which was previously known as General on Tariff and Trade (GATT) in 1947.83 However, there were several problems in the core of this WTO. Some developing countries feel aggrieved, the widening of the WTO’s performance into non-trade and several issues make

 83 Hatta, International Trade in the GATT and WTO Systems, (Bandung: PT Refika Aditama, 2006), pg. 53-56.

Bilateral Economy in the Islamic Period

First Period Second Period Third Period

History Figure History

Figure

History

Figure

Pre-Islamic

Rasulullah Era

Khulafaur Rasyidin Era

Caliphate Umayyah and Abbasid’s era

Abu Ubayd

Abu Yusuf

Al-Ghazali

The Abbasids’ collapse

Trade to China and Southeast Asia

Ibnu Khaldun

The Ottoman Empire’s collapse

Abu A’la Al-Maududi

Ottoman Empire Era

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many civil societies become more critical in realizing that there is something called inequality in the WTO.84 Developing countries ask for a review of existing implementations that happens in WTO, so as to get conclusions for improvements for a better future. However, this is always rejected by developed countries. Various maneuvers and moves are continuously pursued by developed countries which increasingly lead to extraordinary imbalances and widening gap disparities between them.

There are also institutions that head the economy of Islamic countries, such as the OIC (Organization of Islamic Cooperation) and the World Islamic Economic Forum (WIEF). OKI itself is an international organization with 57 member countries that have a permanent representative at the United Nations.85 The WIEF is an institution that seeks to form a shared market with Islam. The Islamic World Economic Organization, which was attended by more than 500 representatives from 44 countries, had also held a meeting to discuss the same matter. The 13th WIEF in 2017 was held in Kuala Lumpur by discussing several economic issues in Islamic countries.86 The plan for free trade will be realized gradually starting at the sub-regional, regional level until all Islamic countries establish free trade between them. A number of participants, both government and companies, made use of the forum to sign cooperation agreements in the areas of housing development, health facilities, halal industries, franchise industries, Islamic finance and

 84 Aam Slamet Rusydiana, “International Trade: Comparison of Modern Economic Theories with Islamic Perspective”, Journal of Equilibrium, Jakarta. Volume 9 No. 1, 2011, pg. 9-11

 85 Ekmeleddin İhsanoğlu. The Islamic World in the New Century: The Organization of the Islamic Conference, 1969-2009, (New York: Columbia University Press, 2010), pg. 15.

 86 Dince Indra, Last Day of the 13th WIEF, CNN Indonesia, accessed on November 3, 2018, at 22:55 https://www.cnnindonesia.com/tv/20171123174425-402-257657/hari-terakhir-wief-ke-13

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Islamic capital markets with a total value of around Rp. 11.8 trillion.

Among the countries under the WTO, OKI, and WIEF, Indonesia and Brunei Darussalam are one of them. Brunei Darussalam is a small but very rich country. As much as 60% of the country’s Gross Domestic Product relies on the oil and gas sector and those that are still in the development stage are from the agriculture, fisheries, forestry and services sectors.87 So, to fulfill this shortcoming, Brunei Darussalam is still very dependent on imports, including one of the countries is Indonesia. The Nation of Brunei Darussalam, as well as many of Middle Eastern countries, are countries that surprise many political, social and economic research experts about how great an authoritarian kingdom-based country is in the face of modernization88. Kingdoms highly dependent on oil and gas has a formula legitimacy which is based on the basis of religion, culture, and traditions, for example, Brunei Darussalam with the concept of the kingdom under the auspices of Melayu Islam Beraja or MIB. So, along with that, the development in the social and the economy grew rapidly, which was supported by an abundant welfare program. Sultan and his government try to form strong and long-lasting relationships with their society.89

Unfortunately, for these countries, this will be felt if the oil price rises or falls. This means that Brunei’s economy is heavily dependent on the extraction of its natural resources. Brunei relies on oil and gas for a total of 90% of its export revenues and more than half or around 60% of its Gross Domestic Product.90 And so, the decline in world oil prices in early 2015 until the end of 2017

 87 Koh Wee Chian, “A Macroeconomic Model of Brunei Darussalam”, CSPS Strategy and Policy Journal, vol. 2, July (2011). Pg. 70.

88 Christopher M Davidson. “The United Arab Emirates: Prospects for Political Reform”, Brown Journal of World Affairs, vol. 15, no.2 (2009), pg.118.

 89 Lisa Anderson, “Absolutism and the Resilience..., Ibid.

Koh Wee Chian, “A Macroeconomic …, Pg. 70. 90 

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has an impact on the economy in a number of countries, especially oil and gas producing countries, including Brunei Darussalam.

Indonesia with an open economy, where non-oil and gas export programs are one of the drivers of national economic growth and job creation and these programs are required to be better prepared to benefit as much as possible from the opportunities of various bilateral, regional and multilateral economic cooperation. As an archipelago that has many islands and neighbors, Indonesia itself has bilateral relations with various countries from various continents. At least there are 94 countries that have bilateral relations with Indonesia. One of the closest countries that has a fairly good bilateral relationship with Indonesia is Brunei Darussalam. This was conveyed directly by the 7th President of Indonesia, Mr. Ir. H. Joko Widodo during a bilateral meeting with the signing of the two countries’ Memorandum of Understanding / MoU in the field of

health and trade.

“ Heretofore, the most stable bilateral relationship is with Brunei because there has never been a problem, there has never been a problem, our workforce here is also

well protected. So there was not much that was discussed before. “91

The cooperation between Indonesia and Brunei actually happened hundreds of years ago, and diplomatically and bilaterally on January 1, 1984, when Brunei Darussalam was independent of British colonialism. The existence of bilateral relations between them, in general, is because these two countries have likeness and

91 Humas, Tak Pernah Ada Masalah Krusial, Presiden Jokowi: Hubungan RI – Brunei Darussalam Paling Stabil, , Sekretaris Kabinet Republik Indonesia, the actual writing is:

“Sampai saat ini hubungan bilateral yang paling stabil adalah dengan Brunei karena tidak pernah ada masalah, tidak pernah ada problem, tenaga kerja kita yang di sini juga terlindungi dengan baik. Jadi tadi tidak ada banyak hal yang dibicarakan:

http://setkab.go.id/tak-pernah-ada-masalah-krusial-presiden-jokowi-hubungan-ri-brunei-darussalam-paling-stabil/ was accessed on April 8, 2018

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similarities in characteristics, including in terms of history, nation, race, religion, and language. The overall relationship between the two countries is going well and that both parties continue to enjoy the relationship of operational cooperation; including trade and investment, tourism, agriculture, fisheries, defense, education, youth, culture and person-to-person contact (Indonesian labor).

Inevitably, each country, whether Indonesia or Brunei Darussalam, has a comparative advantage. Comparative advantage itself is proof that a country can profit from trade even if the country has an absolute deficiency in producing all goods, or a country can profit from trade even if the country has absolute advantages in producing all goods. This allows two countries that working together to focus on the core products of their excellence to maximize profits and drive revenue for the country itself.92 Brunei Darussalam with exports of crude oil and chemicals, while Indonesia with transportation equipment, manufactured goods and

food.

Below is a picture that summarizes the description of

Bilateral Economics in contemporary times:

 92 J. Keegan Waren. Manajemen Pemasaran Global. (Jakarta : PT Prenhallindo, 1996). Pg.10

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Figure. 2.B.4. Bilateral economy in contemporary times (SUMMARY)

5. Some Islamic thinkers in regard to Bilateral Economy

a. Abu ‘Ubaid Al-Qasim1) Brief Profile

Abu’ Ubaid Al-Qasim is a great scholar whose full name is Abu Ubaid ibn Salam al-Khurasani al-Harawi (Arabic: القاسم بن سلام الخراساني الهروي Born in 774 93.(أبو عبيد AD in Herat, Afghanistan and died 838 AD at the age of 67 years, making it one of the scholars who lived in the golden age of the Abbasid Empire. Abu Ubaid is actually better known as an ulama in the field of Arabic Language and is also an expert on Nahwu. He has also highlighted the practice of international trade including the Bilateral Economy, especially exports and imports.

 93 Rif’at Al-Awdiy, Min al-Turast al-Iqtishad al-Muslimin, Kuliah Tijarah-Jami’ah al-Azhar, (Mekkah: Mathba’ah Rabithah all-‘Alam al-Islami al-Islami, 1938), Pg.147

Bilateral Economics in contemporary times

Institutions Countries

Brunei Darussalam Indonesia

GATT

WTO

OKI

WIEF

Bilateral Economic

Cooperation

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The results of his work are around 20 books, both in the fields of Nahdah, Qira’ah, Jurisprudence, Poetry, and others. His famous work is Kitab Al-Amwal which is his writing about Islamic state financial jurisprudence. This book is very rich in economic history from the first half of the second century of Hijri, as well as a summary of the original traditions of the prophet, atsar sahabi and tabi’in about economic problems, making him the first person photographing and documenting economic activities in the time of the Prophet Muhammad, khulafaur Rasyidin, sahabi and tabi’in. Kitab Al-Amwal comprehensively explains about Islamic public finance systematically, especially in the field of government administration. Abu ‘Ubaid cited the views and economic treatment of the previous imam and ulama in the Book of Al-Amwal, although there was also from the perspective of Abu Ubaid himself and tended to spawn his thoughts own. He often quoted the views of Malik ibn Anas and the views of most Muslim scholars of Shafi’i, and he also cites several ijtihad Abu Hanifah, Abu Yusuf,

and Muhammad ibn al Hasan asy-Syaibani.94

2) ThoughtIn terms of the philosophy of law, we can examine

that Abu Ubaid tried to emphasize important points in economics, i.e. the principle of justice as its main principle. For him, implementing this principle will lead to economic prosperity from social harmony.

In bilateral economics, Abu Ubaid had highlighted the practice of international trade in his book Al-Amwal,

 94 Junaidi Safitri, Abdulmuhaimin Fakhri, “Analisis Perbandingan Pemikiran Abu ‘Ubaid Al-Qasim dan Adam Smith Mengenai Perdagangan Internasional”, Millah: Jurnal Studi Agama, Vol. XVII, no. 1 (2017), pg. 89.

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already written by him almost 1000 years before Adam Smith (1723-1790) spawned a theory of absolute excellence.95 His thinking about export-import can be divided into three parts, namely the absence of zero tariffs in international trade, the excise of basic food ingredients is cheaper, and there are certain limits to the excise tax.96

a) Absence of Zero Tariffs (Rates)Not as told by the adherents of Free Trade today,

Islam from Abu Ubaid’s statement allows the excise/tax/tariff. Collection of excise is a common practice in trading by Arab or kingdoms non- Arab before Islam. This habit is characterized by collecting excise merchandise imported on their property if they enter their country.97 Although there was a time when Rasulullah S.A.W was sent to the earth, excise taking was considered an act of harming others based on the word of God. As the word of God, “And O my people! give just measure and weight, nor withhold from the people the things that are their due: commit not evil in the land with intent to do mischief..”98

But then, import’s excise or tariff were first introduced in Islam by Caliph Umar when Muslim traders complained to him that other countries collect their fees at the entrance to these countries.99 From Ziyad bin Hudair, he said, “I have been appointed by Umar to

 95 Nur Chamid, Jejak Langkah...., pg. 175 96 Naf’an, Ekonomi Makro Tinjauan Ekonomi Syariah, (Yogyakarta: Graha Ilmu,

2014), pg.264.  97 Junaidi Safitri, “Analisis Perbandingan Pemikiran Abu ‘Ubaid…, pg. 89 98 Al-Quran, QS. Hud: 85 99 Abu Yusuf, Kitab al Kharaj, (Cairo: Dar al Isiah, 1981), pg. 275-276Also read: Abu ‘Ubaid; Kitab al Amwal, (Beirut: Dar al Fikr, 1975), pg. 635

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become a customs officer. Then he ordered to take a duty import of traders from kafir harbi as usyur (10%), goods import expert traders from ahli dzimmah as much as half of usyur (5%), and goods imports of merchant Muslims one-quarter of usyur (2.5%) “.100 So, there is no practice from time immemorial, that the goods of a country are

free to enter other countries.

b) Excise for staple foods ingredientsFor oil and wheat which are staple foods, excise is

not 10% but 5% with the aim that many imported goods in the form of staple food come to Medina as the center of government at that time.101 From Salim ibn Abdullah ibn Umar from his father, he said, “Umar had collected excise from outside merchants; each of oil and wheat is subject to excise payments as much as half of usyr (5%). This is intended so that goods imported continue to arrive in the land of Madinah. And he has collected excise for goods imported al-Qithniyyah as much as ushr

(10%) “.

c) There are Certain Limits for ExciseExcise in its essence already determined from

a long time ago, even subjects and values contained in goods or services that enter into a country. In the days of the caliphate of Umar, this tax already has certain limits which if less than this limit, the excise duty will not be charged. From Ruzaiq bin Hayyan ad-Damisyqi , that Umar bin Abdul Aziz had written to him, the contents of

 100 Jaribah Al-Haritsi, Fikih Ekonomi Umar bin Khattab. (Jakarta : Khalifa Pustaka, 2006), pg. 570

 101 J Junaidi Safitri, “Analisis Perbandingan Pemikiran Abu ‘Ubaid…, pg. 90

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which were:102

“Whoever passes you (your country) from Ahli zimmah, then picks up their merchandise imported. In essence, every twenty dinars must be charged as much as one dinar. If the level is less than this amount, then calculate the level of deficiency, so that it reaches ten dinars. If the merchandise is less than a third of the dinar, then do not take anything from it. And make their letter payment of taxes to the that the collection of excise duty

will remain in effect so that up to one year”.

The explanation above shows how excise restrictions have existed since a long time ago. According to Abu Ubaid himself, one hundred dirhams is the provision of the lowest levels of excise collection on the import from ahli dzimmah and kafir harbi. Although in another explanation, there is also a written attachment to other restrictions on excise of certain groups, intentionally the author does not include it because the above statement is sufficient to support the part of Abu

Ubaid to limit the value of excise.

b. Abu Yusuf1) Brief Profile

Abu Yusuf, which in literature Islamists often referred to as Imam Abu Yusuf Ya ‘qub ibn Ibrahim bin Habib al-Ansāri al-Jalbi al-Kufi al-Baghdādi was born in 113 H / 731 (or 732) AD in Kufa and had lived in Baghdad, and died in 182 H / 798 AD. He was from the ethnic of Bujailah, one of Arab ethnic. His family is called Anshori because

 102 Mohammad Ghozali, “Konsep Pengelolaan Keuangan Islam Menurut Pemikiran Abu Ubaid”, Jurnal Ekonomi dan Bisnis Islam, Vol. 4, No. 1, 2018 pg. 75

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on his mother’s side, he still has relations with the Anshor (the first adherent of Islam and the helper of the Prophet Muhammad) when he lived in Kufa, which is well-known as an educational area, a place of heritage by Abdullah Ibn Mas’ud (d. 32 H), one of Sahabi of Prophet Muhammad S.A.W.103

Historically it can be seen that Abu Yusuf lived during the period transition of two legends Caliphate in Islam, to be specific, at the end of rule Bani’s Umayyad in Damascus and the time of Bani Abbasids. In the course of his education, Abu Yusuf became a student of Abu Hanifah for 17 years and a number of prominent scholars at that time. During his lifetime, Abu Yusuf created a number of works in the fields of jurisprudence Islamic, international law, hadith collections, etc. Between his books, one of which is famous is the book of Al-Kharaj written at the request of Caliph Harun ar-Rasyid for guidance in collecting importation or income of the State from Kharaj, Ushr, Zakat, and Jizyah. This book can be included in the economic side of public finance in the sense of Economy Modern.104 This is why Abu Yusuf is more famous with his focus on public finance and establishment in price control.

2) ThoughtIn essence, the most important strength of Abu

Yusuf’s thinking lies in the area of Public Finance. With the skill of observation and analysis, Abu Yusuf described financial problems and showed some policies that must be adopted for economic growth and people’s welfare. He saw

 103 M. Nazori Majid, Pemikiran Ekonomi Islam Abu Yusuf (Yogyakarta: PSEI STIS, 2003), pg. 26.

 104 Heri Sudarsono, Konsep Ekonomi Islam, (Yogyakarta : Ekonisia, 2002), pg. 150

50

that the country sector is a mechanism that allows citizens to interfere with economic processes. In addition to the principles of taxation, fiscal policy and the contribution of the Islamic government in improving the economy of the community, he has also touched a little about the policies of the International Economy even though they are still in direct contact with public finance.

In bilateral trade, Abu Yusuf supported the right of the authorities to increase or reduce taxes according to the ability of people to bear the burden.105 This policy and thought were in the form of a customs agreement, that also called ‘Ushr. Among fiqh scholars, usyr (10 percent) has two meanings, namely 10% of agricultural land watered with rain water and 10% taken from non-muslim traders who enter Islamic territory with the merchandisee. ‘Ushr, in this case, is customs duties imposed on all traders who cross national borders, which must be paid only once a year and only apply to goods with a value of more than 200 dirhams. ‘Ushr is paid with cash or goods.106 The imposition of customs duties had long been practiced since the existence of trade between international regions. In pre-Islamic times in Arabia and neighboring Byzantine and Sasanian Empire, merchant vehicles were used to sell commodities from one place to another. It is customary, the head of the market imposes an excise tariff of 10% of the goods brought in for sale by foreign traders in the region.

Ushr is the right of Muslims which are taken from the ahl al-dhimma trade property, and residents of darul

 105 Abu Yusuf, Kitab Al-Kharaj..., pg. 85. 106 Sayed Afzal Peerzade, Reading in Islamic Fiscal Policy, (New Delhi: Adam

Publisher, 1996), pg. 125.

51

harbi that crosses the borders of the Islamic State. Tariff Ushr is set according to the status of the trader.107 If he is a Muslim, then the customs duty of trade is 2.5% of the total items he carries, or in the language of Caliph Umar it can be said: specifically for Muslims, take one dirham from every multiple of 40. While ahl al-dhimmah is subject to a 5% rate. Kafir Harbi is charged a 10% rate according to the rates they charge against Muslim traders who cross their area. 108

In general, all types of trade commodities that enter Islamic countries are ushr objects. The basic provisions regarding ushr outlined by Abu Yusuf in his book are as

follows:109

a) Taxpayer’s goods are those intended as trading commodities.

b) If the trader is a Muslim, the amount of the tax is 2.5 percent (tax is calculated based on the total number of commodities).

c) If the trader is a dhimmi, the amount of tax is 5 percent.d) If traders are foreigners, the amount of tax is 10 percent.e) Taxes can be paid in cash or in kind (goods).f) The minimum limit of taxpayers’ goods is the same as

the provisions of nishab in zakat, which is worth 200 dirhams.

g) If the trader stays for more than one year, the commodity will be taxed again.

 107 Abu Yusuf, Kitab Al-Kharaj..., pg. 134 108 Abu Yusuf, Kitab Al-Kharaj...., pg. 135. The text of the Caliph Umar is written:

خذ أنت منـهم كما يأخذون من تجار المسلمين ، وخذ من أهل الذمة نصف العشر، ومن المسلمين

من كل أربعين درهما )اى ربع العشر( 109 Sayed Afzal Peerzade, Reading in Islamic..., pg. 126.

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h) Muslim traders and dhimmy are only charged once for the same commodity.

i) If a foreign trader has returned to his country and then returns again, then he will be taxed again.

j) Proof of payment of the tax must be enclosed with the amount of tax paid, the value of the taxable item, and the date.

k) Tax is imposed on trade between provinces in an Islamic country.

l) The size of the tax burden is a material consideration of policies that apply in other countries.

m) Items that are only slightly assessed will be exempt from tax.

n) Basic goods are exempt from taxes or taxed with other

considerations.

c. Al-Ghazali1) Brief Profile

Imam al-Ghazali is a famous Sufi figure in the 5th century. Al-Ghazali took two different lifetimes which developed his character as one of the greatest Islamic scholars.110 First, when he was in a condition full of enthusiasm in learning, teaching and passionate in his position as a professor at the Nizamiyah College which was always overwhelmed by worldly possessions. Second, a period of doubt about the truth of the knowledge he got and the position he held. If traced from the span of Islamic history, even though al-Ghazali’s life span is still in the classical period (650-1250 AD), it has entered into a period of decline or the period of disintegration (1000-1250 AD).

 110 Ahmad Zaini, “Pemikiran Tasawuf Imam Al-Ghazali”, Esoterik: Jurnal Akhlak dan Tasawuf, Volume 2 Nomor 1 2016, pg. 148

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Politically the power of Islamic government which at that time was under the power of the Abbasid dynasty was already very weak and retreated because of the ongoing and unresolved internal conflicts.111

Al-Ghazali’s full name is Abu Hamid Muhammad bin Muhammad ibn at-Tusi al-Ghazali, known as Hujjah al-Islam112. He was born in Ghazaleh; a village near Thus, part of the city of Khurasan, Iran in the year 450 H / 1056 AD, and he died on 14 Jumadil Akhir 505 H / 19 December 1111 AD. His father was a devout and religious and his life was very simple as yarn spinner, which in Arabic means Al-Ghazali itself, has a high religion and expects his children to become scholars who always give advice to the people. After his father passed away, Al-Ghazali became obsessed with science. Al-Ghazali was well-known in the West as Al-Gazel, and he was one of the great thinkers of Islam.113

The education he obtained allowed him to master Arabic and Farsi fluently. Because of his deep interest in science, he began to study the science of Ushuluddin, Mantiq, Ushul fiqh, philosophy, and to study all the opinions of the four schools of thought to the proficiency of the fields discussed by these schools.114 After that, he continued his studies with Ahmad ar-Razkani in the field of jurisprudence, Abu Nasr Al-Ismail in Jarajan, and Imam al-Haramain Abu al- Ma’ali al-Juwaini at Naisabur. Because Imam al-Ghazali

 111 Amin Syukur, Masharudin. Intelektualisme Tasawuf: Studi Intelektualisme Tasawuf Al- Ghazali (Yogyakarta: Pustaka Pelajar dan LEMBKOTA Semarang, 2002), pg. 119

 112 M.M Syarif, Para Filosof Muslim, (Bandung: Mizan, 1996),pg. 220. 113 Heri Sudarsono, Konsep Ekonomi Islam, (Yogyakarta: Ekonisia, 2004), pg. 152 114 H. Abdul Aziz Dahlan, Ensiklopedia Hukum Islam (Jakarta: PT.Ichtiar Baru van

Hoeve, 2001), pg. 405

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had a great of knowledge, he was appointed professor at the Madrasah Nizhamiyah (a university founded by the prime minister at that time) in Baghdad, 484 H. Then he was appointed as Naib Counselor there. He has wandered to several places such as Mecca, Medina, Egypt, and Jerusalem to meet with scholars there to explore his knowledge existing. In his journey of life, he wrote the book of Ihya Ulumuddin who contributed greatly to society and human thought in all matters.115 Therefore, is worth it if Al- Ghazali regarded as one of the leaders of Islam, he even dubbed as Hujjatul Islam, the Defender of Islam.

It is estimated, that Al-Ghazali had written 300 pieces of paper covering various disciplines, such as logic (Mantiq), moral (Etique), philosophy, interpretation, Sufism, politics, administration and certainly also economic behavior, although now only 84 are left..116 Discussions about the economy are in several of his books, such as Ushul Al-Fiqh, Al-Mustafa, Mizan Al-Amal, and his monumental work, Ihya ‘Ulum Al-Din. His discussion includes money, trade, division of labor, consumer behavior and community

organizations in the economy.

2) ThoughtAl-Ghazali’s focus of mu’amalah (connection) life on

God and on humans does not escape one particular field but covers many aspects of human life. He conducted extensive Islamic studies to defend the teachings of Islam. Therefore, we find that there is no specific book about Islamic economics

 115 Moh. Muafi Bin Thohir, “Pemikiran Imam Al-Ghazali Tentang Ekonomi Islam Dalam Kitab Ihya Ulumuddin”, Iqtishoduna Vol. 8 No. 2, October 2016, pg. 78

 116 Aidit Al-Ghazali, Islamic Thinkers on Economics, Administration, and Transaction, (Kuala Lumpur: Quill Publisher, 1991), pg. 40

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that he made. His attention in the field of economics is contained in various studies of his jurisprudence, because of the Islamic economy, in essence, it is an integral part of Islamic jurisprudence.117 However, al-Ghazali’s economic thoughts are based on Sufism approaches, where bourgeois, powerful, and prestige people in their time find it difficult to accept fiqh and philosophical approach in believing in Judgment Day.118 This thought will spawn a socio-economic concept of Al-Ghazali which he calls the “function of Islamic social welfare”, where he emphasizes that according to the guidance of revelation, the main purpose of human life is to achieve goodness in the world and the hereafter (maslahat al-din wa al-dunya).119

In bilateral and regional trade, even though it explicitly explains the practice of market evolution, the elasticity of demand and prohibition on stockpiling which causes higher prices or can be called a price monopoly, he also explained a little about the importance of inter-regional transportation to create price stability and the caused. The

statement is written as follows:120

“Furthermore, these practices occur in various cities and countries. People travel to various places to get tools and food and take them to other places. Economic affairs of people are finally organized to cities that may not have all the tools needed, and to villages that may not have all the food needed. This situation, which in turn raises the need for transportation equipment. Created a class of regional

 117 Adiwarman Azwar Karim, Sejarah Pemikiran Ekonomi Islam, (Jakarta: PT. Raja Grafindo Persada, 2006), pg. 317.

 118 Sirajuddin, “Konsep Pemikiran Ekonomi Al-Ghazali”, Laa Maisyir: Journal of Islamic Economics, Volume 3, Number 1, June 2016, pg. 52-53.

 119 Adiwarman, Sejarah Pemikiran Ekonomi Islam …, pg. 319 120 Abu Hamid al-Ghazali, Ihya ‘Ulumuddin, (Beirut: Dar al-Fikr, Volume III, 1989),

pg. 227

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traders in the community. His motives are of course looking for profit. These traders work hard to meet the needs of others and their own benefit and this benefit is eventually consumed by other people

as well. ”121

The actual statement of the context is generally not only the problem of economic transportation but also the division of labor, specialization of goods and also the problem of barter. In his analysis, al-Ghazali explained the emergence of specialization and division of labor. Because in practice, it is not possible for one individual to fulfill all of his needs through his own efforts, there is a need for transactions which, one day may require the existence of other individuals who offer various products and services.122 This shared need leads to the formation of villages, cities, countries and the world, with an agreed social order to ensure the satisfaction of human needs that gradually becomes

more sophisticated.123

Furthermore, Al-Ghazali gave opinions and analysis in the development of economic societies by further discussing the practice of trade between regions or within certain limits for international trade, he argued that trade in the region was caused by motives of profits from traders who saw the need for goods by consumers in an area that cannot be fulfilled by local production, it can be concluded that Al Ghazali views about trading between regions as an extension of practice in the discussion of the theory of supply and

 121 A Adiwarman Azwar Karim, Ekonomi Islam Suatu Kajian Kontemporer, (Jakarta: Gema Insani Press, 2001), 158.

122 Abdou Diaw, “Imam Al-Ghazali’s Views On Economic Activities”, Munich Personal RePEc Archive (MPRA), No. 32515, ISBN 978-983-44600-0-6, 2009, pg. 11

 123 Abu Hamid al-Ghazali, Ihya ‘Ulumuddin ..., pg.228.

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demand in market mechanisms. Imam Al-Ghazali followed the economic development regarding transportation then by

writing:

“... It is not impossible that cities and villages take a round trip, to buy food production materials from the village and buy industrial equipment and clothing from the city. They must move each other’s things and make the business a livelihood, so that the city has all the industrial tools, and the village produces all kinds of food production. In this case, transportation is needed, to carry all the

items needed. “124

According to Al-Ghazali, the existence of transportation and freight for traders is the desire to collect items that they have acquired throughout the day and night on the trip. They are looking for items that are needed and risky that must be borne is the robbery on the way, or the tyranny of the authorities in setting excise (high). However, sometimes, not all mobile traders have their own transportation, so he needs someone else’s vehicle or freight to carry his merchandise. Thus, another transaction arises called rent, which in Islamic law is called Ijarah, as well as wages and pay-salaries, which are called Qirad. All of these become special and new livelihoods in economic development.

The concept of Ijarah according to al-Ghazali is the aqad of cooperation between one and the other to gain benefits and bring benefits. It means; usually in the tradition of society, people sometimes have one vehicle (animal) while others have capital (money), then cooperation between the owner of the capital and the owner of the goods is called

 124 Abu Hamid al-Ghazali, Ihya ‘Ulumuddin ...., pg. 228

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ijarah.125 He wrote:

“Then the properties will be transferred, surely the human could not carry it. Property owners sometimes do not have animals (vehicles), then there is a cooperation between the owner of the property and the owner of the animal, which is called the Ijarah. Thus it includes

the form of effort. “

d. Ibnu Khaldun1) Brief Profile

Ibn Khaldun with the full name Waliyuddîn Abu Zaid Abdurrahmân Ibn Khaldun al-Hadrami al-Ishbili was born in Tunisia at the beginning of Ramadan 732 H or May 27, 1332 AD, and died in Cairo on 17 March 1406 AD.126 Abdurrahman is his small name and Abu Zaid is his family calling, and when he became qadhi in Egypt he was called Waliyuddin. But from all that name, he is best known as Ibn Khaldun.127

Ibn Khaldun’s life was originally known in a practical political world in the year 750 H, when he was 18 years old in following his other family’s life way. His family background from the upper strata seems to be one of the important factors which later colored Ibn Khaldun’s life career in politics before he fully plunged into the world of science, making it occupy several important positions in government at that time.128 Thanks to the family’s experience and skills communication with the scholars and famous

 125 Abu Hamid al-Ghazali, Ihya’ Ulumuddin...., pg. 222 126 Muhammad Ibn Thawar al-Tanji, At-Ta’rif bi Ibni Khaldun wa Rihlatuhu Gharban

wa Syaman, (Cairo: Lajnah al-Ta’lif wa Tarjamah wa Al -Nashr, 1951), pg. 1.  127 Zainab al-Khudhairi, Filsafat Sejarah Ibn Khaldun, translated by Ahmad Rafi’

Usmani, (Bandung: Penerbit Pustaka, 1987), pg. 9 128 Samsul Nizar, “Konsep Negara dalam Pemikiran Politik Ibnu Khaldun”, Jurnal

Demokrasi Vol.II No.1, 2003, pg. 97

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figures, it all really made him have much contributed to the career politicians of Ibn Khaldun. From his father, he studied qiro’at. While his knowledge of hadith, Arabic and fiqh were derived from his teachers, Abu al-Abbas al-Qassar and Muhammad bin Jabir al-Rawi. Then obtained a degree hadith from Abu al-Abbas al-Zawawi, Abu Abdullah al-Iyli, Abu Abdullah Muhammad, and others. He had visited Andalusia and Morocco. In both countries, he had acquired knowledge from his ulama, among others Abu Abdullah Muhammad al-Muqri, Abu al-Qosim Muhammad bin Muhammad al-Burji, Abu al-Qasim al-Syarif al-Sibti, and others. Then he visited Persia, Granada, and Tilimsin.

After passing through various drama and game of politics, from 776 H/1374 AD to 784 H/1382 AD he focused his attention on science in the Tunisian royal library. He began writing a history sheet by composing Muqaddimah (Introduction) as his first work. Then thereafter, many of his masterpieces work like Al-I’bar (World History), At-Ta’rif (Autobiografi), and many other books representing some disciplines. Therefore, he was never known as a pioneer in a specific discipline. However, after all, his contribution to sociology and economics had made him the title of Father of World Economy and Sociology, where he wrote in his book Muqaddimah, 400 years earlier from Adam Smith and Auguste Comte who was claimed by West as Father ofWorld

Economy and Father of World Sociology.

2) ThoughtThe opening work of Ibn Khaldun after a long time

facing the hustle and bustle of the political world is Al-Muqaddimah Book, which literally means the Introduction,

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that was completed in November 1377 AD. 129 In this book, Ibn Khaldun discusses various topics such as history, geography, mathematics, religion, government system, economic system, education system, and others. Although this book is not specifically reserved for one particular area, nor does it discuss the economic field in a particular chapter, but he discusses it scattered in everywhere inside it. He defines economics wider than At-Tusi.130 He can see the correlation between economics and human well-being.131 It is remarkable that when we read al-Muqaddimah and we will find that its content is very modern, half of its content is still relevant to today’s world, although it was authored in the 14th century.

In bilateral economics, which he referred to in international trade, clear trade profits between countries. Ibn Khaldun, argues that goods will become more valuable by cross-country trade because of the satisfaction of the public, the merchant’s profits and state welfare will all increase (gains from trade).132 The decision to do cross-country trade is:

 129 Choirul Huda, “Pemikiran Ekonomi Bapak Ekonomi Islam; Ibnu Khaldun”, Economica: Jurnal Pemikiran dan Penelitian Ekonomi Islam, Volume IV / Issue 1 / May 2013, pg. 112

 130 named Abu Jafar Muhammad bin Muhammad bin al-Hasan at-Thusī (Persian: February 24, 1201 - June 26, 1274), better known as Nashiruddin محمد بن محمد بن حسن طوسیath-Thusi, was a polytheist, architect, philosopher, doctors, scientists, and Persian scholars. He was often regarded as a trigonometric triggering idea as a separate mathematical discipline. He waas a Shiite (Shia) Muslim Twelve Apostles. Muslim scholars Ibn Khaldun

(1332-1406) regard Tusi as the greatest of Persian scholars.Read: Amira K Bennison, The great caliphs: the golden age of the ‘Abbasid Empire.

(New Haven: Yale University Press, 2009), pg. 204 131 Nur Chamid, Jejak Langkah Sejarah..., pg. 248 132 Ibn Khaldun. Mukaddimah. translated by Masturi Ilham MC, Cet II; (Jakarta: Al-

Kautsar Library, 2001), pg. 715.

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1) Cheaper than internal production2) Better quality

3) Really new product It also emphasizes the role of the international division

of labor that is more based on the skills of the population of each country. As there is a division of labor in the country, there is also a division of labor internationally. This division of international work is not based on the natural resources of these countries but is based on the skills of the locals. According to him, the division of international work is not only based on the sources of its natural resources, such as gold and silver mines.133 He also said that a positive balance of payments would increase the country’s wealth as a

positive payment balance illustrates two things:

1) The country’s production rate for a type of commodity is higher than the country’s domestic demand, or supply is greater than demand, so it’s allowing the country to export.

2) The country’s level of production efficiency is higher compared to other countries. With a higher level of efficiency, the commodity of a country is able to enter

other countries with more competitive prices. In his view, the wealth and development of a nation is

largely determined by economic activity which encompasses the total number and division of labor, the extent of the market, the adequacy of benefits and the facilities provided by the state, as well as research and technology which in turn depends on the investment from savings or surplus revenue

 133 A. Karim Adiwarman, Ekonomi Mikro Islam, (Jakarta: RajaGrafindo Persada, 2012), pg. 176

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produced after meeting the needs of the community.134 The more active population, the more products it produces. A number of the surplus of goods produced may be exported and thus will increase the prosperity of the local area. On the other hand, the higher the level of prosperity, the higher the population demand for goods and services. The rise in demand for goods and services led to the rise in prices of such goods and services as well as rising salaries paid to skilled and highly-skilled workers. He also said that the professional traders in business would not move the commodities business unless the commodities needed a lot of people from all walks of life, both from the rich, the poor, the rulers and the market needed.135

The three decisions above were created because he looked at the value of an item when it traded including through international trade. According to Ibn Khaldun, the most important production factors are not only in natural resources but also in labor and the only obstacle to development is the lack of skilled labor inventories.136 Therefore, it is important that international organizations contribute to the handling of imports and exports between countries with analysis of exchange conditions between rich countries and poor countries, on the tendency to export and import, about the impact of economic structures on development and on the importance of intellectual capital in the process of growth. This is where the solution offered by Islam is a balanced

 134 Aam Slamet Rusydiana, “Perdagangan Internasional: Komparasi Teori Ekonomi Modern dengan Perspektif Islam”, Jurnal equilibrium : jurnal ekonomi dan kemasyarakatan, Sekolah Tinggi Ilmu Ekonomi Achmad Dahlan (STIEAD) Jakarta. Volume 9 No 1, 2011, pg. 18

 135 Ibn Khaldun. Mukaddimah ...., Pg. 715 136 Bahrul Ulum Kontribusi Ibnu Khaldun Terhadap......, pg. 24-25.

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economic system or equilibrium(wasathiyyah). Islam doesnot oppress the weak as it happens to the capitalist society but also does not violate the rights of wealthy individuals and groups as they are in the system of socialism-communism. That is why the Islamic Economy chose the

path of justice in achieving social prosperity.

C. Research Framework2.C Framework for Researcher

7

Analysis of Bilateral Economic Trade according to Islam

(Case Study of the Nation of Brunei Darussalam and the

Republic of Indonesia)

To find out the Islamic theoretical views on Bilateral

Economy between 2 developing countries

To find out the bilateral economic relations between

Indonesia and Brunei in recent

years

Purpose

Method

Data

Data Collection

Qualitative Quantitative

Documentation Documentation Interview

Primary Data & Secondary Data Secondary Data

Analysis Tool Descriptive Analysis

Descriptive Analysis and

TOT Analysis

64

65

CHAPTER III

RESEARCH METHODS

A. Research ObjectsThe object of the research is the target and aim of the research.

According to Supranto137, the object of research is a set of elements that can be people, organizations or items to be scrutinized. In this study, the object of research is Bilateral Economic Trade according to Islam. This study was conducted for the Analysis of Bilateral Economic Trade in Islam with a case

study on Bilateral Economy between Brunei and Indonesia.

B. Place and Time ResearchThis research is held at the Embassy of the Republic of Indonesia

in Brunei Darussalam, Kantor Pelayanan Pajak Pratama Madiun and Port of Tanjung Priok. Those location was chosen because it had all aspects of support for the research to run well. The time spent in this study was from 2011 to 2018, and its research began at the time of the first data collection on the documentation of the Indonesian Embassy’s Economic Field Report (Laporan Kedutaan Indonesia Bidang Ekonomi) in Brunei Darussalam,

some interviews and documentation at those locations.

C. Type of Research The researcher uses mixed methods in this paper. Mix research is

a research approach that combines qualitative research with quantitative research138 . While according to Sugiyono139, mixed methods are a method of research by combining the two research methods at once, qualitatively and quantitatively in research activity, so that more comprehensive,

 137 J. Supranto, Statistik (Teori dan Aplikasi). Edisi Keenam. (Jakarta: Erlangga, 2000), pg. 21.

138 John W Creswell, Research design: Qualitative, quantitative, and mixed methods approach. (California: SAGE Publications, Inc., 2010), pg. 204

 139 Sugiyono, Metode Penelitian Kuantitatif, Kualitatif dan R&D.(Bandung: Alfabeta, 2011), pg. 18

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valid, reliable, and objective data will be obtained, where one of the methods is more dominant to other methods. The less dominant method is simply positioned as a complementary method as additional data. The more dominant method in this study is the qualitative method and as the complementary method is a quantitative method. The author uses this method with the aim of the researcher wanting to know bilateral economic development between Brunei and Indonesia and to analyze and describe

bilateral economic relations according to Islam.

D. Data Source The data source is everything that can provide information about

data. Based on the source, the data are divided into two, namely primary

data and secondary data:140

1. Primary DataPrimary data is the data created by the researcher for the

specific purpose of solving, i.e. the issues that being handled. The data is collected by the researcher directly from the first source or place of the research object. The primary data of the researchers are from the Documentation of the Indonesian Embassy’s Report on Economic Affairs in Brunei Darussalam and interviews in several places such as Office of Supervision and Service for Customs and

Excise, Madiun, Tanjung Priok Port, and others.

2. Secondary DataSecondary data is the data that has been collected for purposes

in solving the problem being encountered. This data can be found quickly. In this study, the source of secondary data is the literature, articles, journals, and sites on the internet that are relevant to the research conducted. Secondary data is obtained through various sources such as article, literature, as well as sites on the internet

 140 Sugiyono, Metode Penelitian Kuantitatif......, pg. 137.

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that is related of Bilateral Economic Cooperation between Brunei and Indonesia, Bilateral Economy according to Islam or any of the

research undertaken.

Table. 3.D. Data Source

Data Type Data Source Website

Primary

Interview

Office of Supervision and Service for Customs and Excise, Madiun

-

Interview Tanjung Priok Port -

Interview

Embassy of the Republic of Indonesia in Brunei Darussalam

-

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Secondary

Documentation

Report of the Indonesian Embassy in Economics in Brunei

Darussalam

-

Measurement of Indonesian

Trade with Brunei Relating to the Value of

Commodity Exports

The Observatory of Economic Complexity

(OEC

https://atlas.media.mit.edu/

Exchange Rate Development

Website Bank Indonesia

https://www.bi.go.id/

GDP (Gross Domestic Product)

Indonesia and Brunei

World Bank https://www.worldbank.org/

E. Data Collection TechniquesArikunto141 said that the Data collection techniques are ways that

researchers can use to collect data, where the means are shown in an abstract, cannot be realized invisible objects, but it can be viewed using them. The

techniques used by researchers are documentation and interviews.

1. DocumentationDocumentation literally means written items. In the

implementation of the documentation method, researchers investigated written objects such as books, magazines, documents,

141 Arikunto Suharsimi. Prosedur Penelitian Suatu Pendekatan Praktek. Cet.XV. (Jakarta: PT. Rineka Cipta, 2014), pg. 265.

69

regulations, websites and so on.142

2. InterviewThe interview is a conversation with a specific intention

conducted by the two parties, the interviewer who asked the interviewee and the interviewee who answer the question.143 In this case, researchers use structured interviews, wherein an interviewer sets his own problems and questions that will be asked to find

answers to the hypotheses that are arranged strictly.144

F. Data Analysis TechniquesThis research was written by researchers using analysis tools that are

descriptive analysis and TOT analysis. According to Sugiyono,145 descriptive analysis is the statistic used to analyze data by describing or representing data that has been collected as it does for real without intending to make general conclusions or generalizations. While according to Sudarto, descriptive analysis data comes from scripts, interviews, field notes, documents, and so forth, and then described so as to give clarity to reality or fact.146 According to Obstfeld, TOT analysis or term of Trade or exchange rate effects analysis is the analysis of the relative price of imports in terms of exports, and it’s defined as the ratio of export prices to import prices.147

Px = . 100%; Pm = . 100%Description:

Px = Consumer Price Index Export = Export Prices

 142 Arikunto Suharsimi. Prosedur Penelitian Suatu....., pg. 274. 143 J. Moleong Lexy, Metodologi Penelitian Kualitatif, (Bandung: PT Remaja

Rosdakarya, 2006), pg. 186. 144 J. Moleong Lexy, Metodologi Penelitian Kualitatif...., pg. 138. 145 Sugiyono. Metode Penelitian Kuantitatif Kualitatif ..., Pg. 206 146 Sudarto, Metodologi Penelitian Filsafat. (Jakarta: Raja Grafindo Persada, 1997),

pg. 66. 147 M. Obstfeld, Rogoff, K., Foundations of International Macroeconomics.

(Cambridge, MA: MIT Press, 1996). pg. 199.

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Pm = Consumer Price Index Import = Import Price

= Export Price = Import Prices

In describing the above calculation is only comparing the two indices. So from comparing the calculations, it can be seen that the profits from trade between the two countries can be analyzed by descriptive data from both indices. Calculation of the index or exchange-traded Terms of Trade (TOT), as follows:

TOT = . 100 %Description:TOT = Term of Trade or Exchange Rate Trading

= Export Price Index = Import Price Index

If the Term of Trade (TOT) is greater or the increase in the term of the trade (TOT) develops, then foreign trade becomes positive or better because with certain export values a greater import value is obtained148.

 148 Apridar, Ekonomi Internasional: Sejarah, Teori, Konsep dan Permasalahan dalam Aplikasinya, First Edition, (Yogyakarta: Graha Ilmu, 2009), pg, 129

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CHAPTER IV

RESULTS AND DISCUSSIONS

A. General Description

1. Profile of Research Objectsa. Embassy of the Republic of Indonesia, Brunei Darussalam

Indonesia’s cooperation with Brunei has actually been in existence hundreds of years ago and diplomatic and bilateral on January 1, 1984, as the fourth country to establish embassies in Brunei Darussalam. At that time the President of the Republic of Indonesia Grand General of the of TNI (Indonesian National Armed Forces), H.M. Soeharto appointed Zuwir Djamal as the First Extraordinary and Plenipotentiary Ambassador of the Republic of Indonesia (LBBP-RI) to Brunei Darussalam. The first Embassy of the Republic of Indonesia was in Bandar Seri Begawan since the handover of credentials until 1986, located at Terrace Hotel, Jalan Tasek Lama, Bandar Seri Begawan. As time passes, the Indonesian Embassy has taken several places to move.

The bilateral relations between these two countries can occur generally because these two countries have likeness and similar characteristics, including in terms of history, race, tribe, religion, and language. The overall relationship between the two countries goes well and that both sides continue to enjoy the relationship of the joint operation; including trade and investment, tourism, agriculture, marine and fisheries, health, defense, transnational crime, education, youth, culture and

contact per person149 (Indonesian labor).

 149 Kementerian Hal Ehwal Luar Negeri, Bilateral Relations - Ministry of Foreign Affairs And Trade: Indonesia, http://www.mofat.gov.bn/index.php/bilateral-relations/item/69-indonesia accessed on April 08, 2018

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Bilateral relations with Brunei Darussalam have a very important role for Indonesia, particularly in relation to the presence of about 60-80 thousand Indonesians living and working in Brunei Darussalam. The Embassy of the Republic of Indonesia (KBRI) Bandar Seri Begawan has been designated as a representative who runs the function of citizen service, thus increasing the protection of Indonesian Citizens (WNI) to be the main priority of the work of the Embassy.

In accordance with the Decree of the Minister of Foreign Affairs of the Republic of Indonesia SK.06 / A / OT / VI / 2004/01 Year 2004 on Organization and Work Procedure of the Republic of Indonesia in Abroad Country, the Embassy of the Republic of Indonesia in Bandar Seri Begawan is a Diplomatic Representative with Representation index 3,09 and the index of each activity as follows: Consular (3.60), Politics (3.27),

Economy (3.27) and Culture (2.23)150

The Vision Indonesian Embassy (KBRI) in Bandar Seri Begawan 2015-2019:

● Being a spearhead in establishing diplomacy authority in Brunei Darussalam

The Mission of KBRI Bandar Seri Begawan 2015-2019:● Strengthening the role of KBRI Bandar Seri Begawan in

promoting national interests● Improving the capacity of KBRI Bandar Seri Begawan who

is qualified in support of the mission of diplomacy in Brunei Darussalam.

Various functions/staff are available at the Embassy of the Republic of Indonesia. From the ambassadors who had a duty to engage in relations with other countries or the head

 150 Embassy of the Republic of Indonesia, Laporan Analisa KBRI Bandar Seri Begawan: Bidang Ekonomi, Bandar Seri Begawan, 2017, pg. 1

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of country relations with foreign governments (bring official voices of his country) and some more functions and staff at the Embassy. I had the opportunity to interview the Embassy’s Economic Function Coordinator called Eko Himawan. In export-import case, he explained that the Indonesian Embassy contributed to the promotion of Indonesian products in Brunei Darussalam and facilitated businessmen who took part in business fairs in Brunei and other related business lives there. In addition, annually, the KBRI Annual Report of the Bandar Seri Begawan is also written for the Economic Field, which is

organized monthly.151

b. Port of Tanjung PriokPort of Tanjung Priok is the largest and busiest port in

Indonesia located in Tanjung Priok, North Jakarta. This port serves as a gateway to the entry and exit of goods of export-import and goods between islands. This port operates under Persero or Pelindo II with the long name PT Pelabuhan Indonesia II (Indonesia Port Corporations II), it’s a State-Owned Enterprises (BUMN) engaged in logistics, specifically in the management and development of ports. The port service company established on December 1, 1992, then, since February 22, 2012, changed its name from PT Pelindo II (Persero) to Indonesia Port Corporation (IPC). IPC is headquartered in Jakarta and has operations in 10 provinces as well as managing 12 ports. The Port of Tanjung Priok in Jakarta is a national and international main port which is the gateway to national and international economic connectivity that serves as the backbone of national development, with a total volume of freight transportation and handling of 60% from and

 151 Result of Interview with Indonesian Embassy, Economic Function Coordinator, Mr. Eko Himawan, At Wednesday 21 Of March 2018. See Appendix I, No.1

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to Indonesia152 and the highest revenue of 74.16% compared to other ports in the year 2015.153 Approximately 63.5% of total exports and 82.4% of total imports are carried out through 10 major ports. Tanjung Priok in Jakarta is the largest contributor to export and import. The proportion of exports coming out and imports coming through Tanjung Priok is 23.9% (of total exports) and 45% (of total import value).154 It is also influenced by the flow of containers in Asia to have a growth rate in the world until 2015

Figure. 4. A. 1. B. 1. Global Container Flow by percentage

Source: BCG Analysis in container shipping

This port’s history starts from European traders, Dutch, Portuguese, Spanish, and English that exploring the oceans to reach this largest archipelago. After traveling oceans for a long

 152 Agus Budi Purwantoro, “Pengaruh Pergerakan Angkutan Peti Kemas Terhadap Kinerja dan Kualitas Ruang Lalu Lintas di Kawasan Pelabuhan Tanjung Priok dan Hinterlandnya”, Universitas Diponegoro E-Journal, Seminar Nasional “Menuju Arsitektur dan Ruang Perkotaan yang Ber-kearifan Lokal” PDTAP 2015, pg. 122

 153 Perusahaan Perseroan (Persero) PT Pelabuhan Indonesia II dan entitas anaknya, Laporan keuangan konsolidasian, 2015, pg, 174 https://www.pelindo.co.id/uploads/2019/04/Report%20PT%20Pelindo%20III%20(Persero)%20Perusahaan%202016%20audited.pdf-1554774722.pdf accessed on April 15, 2019, 11:03

 154 Latif Adam, Inne Dwiastuti, “Membangun Maritim Poros Melalui Pelabuhan”, Jurnal Masyarakat Indonesia, Vol. 41 (2), December 2015, pg. 168

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time, finally, the first Portuguese ship arrived at Sunda Kelapa Harbor in 1522. By putting aside the colonial story afterward, finally in 1896, when the opening of the Suez Canal, the Sunda Kelapa Port in Batavia was crowded not only by the number of ships, trade vessels from various countries, but also a place for travelers to travel around the world. The Dutch government is aware of the fact. Finally, they decide, Sunda Kelapa should be developed according to needs. Therefore, the new port is immediately built at east of Sunda Kelapa. Then it was named as Port of Tanjung Priok.

The port is located in Tanjung Priok, Jakarta, Indonesia at the coordinate point of 6 ° 5’48.44 “LS, 106 ° 52’57.8” BT with an area of 604 hectares with a port size of 424 hectares. In general, Port o f Tanjung Priok activities in bilateral trade, or in general, export & import between countries are handling, loading and unloa d ing goods.155 Other than those, Port of Tanjung Priok also has other duties which are administered by several institutions:

● Customs which handle the import duty and goods tax, ● Quarantine Cent e r which oversees animal, plant and fish

related items,● Immigration which is supervising human through the port,

the● Office of Health which oversees the illness of a human being

who runs through the port, the● Office of Municipalities which regulates the permits,

improvements, security, and safety of a vessel,● The Port Authority Office (P.A) which regulates and makes

 155 Result of Interview with General Manager PPJK (Customs Clearance Services Company) and FF (Freight Forwarder), Mr. Fuad Firdaus, At Tuesday 12 of February 2019. See Appendix I, No. 3

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regulations and pricing on port activities in general, in terms of unloading, container loads and so on. P.A. represents the Ministry of Transportation

● The operator which represents various companies such as Pelindo (Indonesia Port Corporations II) as a facility manager, PBM (Stevedoring Company) as a company to carry out loading and unloading, Shipping company as a ship operator, Freight Forwarding Company that handles goods from door to door to other companies.

Figure. 4. A. 1. B.2 The flow of Goods from Exporters to Importers

According to the interview with Mr. Budi Santoso as an Import Export logistics practitioner,156 it simply explained the system of imports and exports within ports according to the

flow of goods with the following arrangement:

a. Sellers and buyers in both countries make transactions and buy-sell agreements.

 156 Result of Interview with Export-Import Logistics Practitioners (Owner of PT Multi Prima Mandiri), Budi Santoso, At Tuesday 12 Of February 2019. See Appendix I, No. 4

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b. Making an agreement in determining the payment mechanism with options through banking, hedging, or with the trust of two parties, it all depends on the sales contract between the seller and the buyer. 1) If only with trust without going through the bank, that

means, with several agreements between each without the bank, then the seller can directly prepare to deliver the goods.

2) However, if the seller conducts transactions with banks, then they will need an L / C (Letter of Credit). The buyer opens an L / C at the bank, then sends it to the seller’s country. In the L / C, there are already several Term of Condition, i.e. the conditions required by the buyer to the seller agreed upon by both. After that, the seller can immediately prepare to deliver the goods.157

c. Seller orders containers from the third party such as NYK, Evergreen, etc., loaded goods into them, then sent to the seller’s country port to the buyer’s country.

d. When the goods are on the way, the exporter or seller will provide documents related to their exports to the Bank in their country, then sent to the Bank in the importing country.

e. The buyer gets the document, with the arrival of goods to  157 In the L / C itself, there are many provisions and conditions that have been

determined in Uniform Customs and Practice (UCP) under the WTO. One of them is the party’s responsibility for the goods exported. There are three most common terms: Free On Board (FOB), Cost and Freight (C & F) and Cost, Insurance & Freight (Cost Insurance and Freight). On the basis, the difference between them is the right to the goods. For example, if the L / C is with a CIF agreement, then when the goods face problems in the ocean so that the goods do not reach the importer, the exporter is responsible for covering the insurance

and the loss of the buyer. Read: Logistix Global Cargo Pvt Ltd, International Commercial Terms, pg. 02 http://

www.globalcargologistix.com/INCOTerms.pdf or United Nations Development Program, Shipping and Incoterms: Practice Guide, pg. 15. https://www.undp.org/content/dam/undp/documents/procurement/documents/UNDP-Shipping-Guide.pdf

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the port in his country. Then the buyer must complete the process of Customs Clearance or import tariff by filling out and submitting a PIB (Notification for imports of goods). In this PIB, the buyer will notify information about imported goods such as prices, specifications and so on.

f. After that, buyers pay import duties at the bank with payments on existing PPN (VAT/Value-Added Tax) and PPH (Income Tax), then are debited for deposit to country income. This payment is called the billing form or invoice. Then the PIB above is sent to PPJK (Customs Clearance Services Company) to notify that customs affairs have been paid off.

g. PPJK then responded that this item may cross the route that has been directed. There are 3 paths with different colors, namely:1) Green Lane: the goods can be directly taken out of the

port to be brought to the importer, marked with SPPB (Letter of Expenditures Approval)

2) Yellow Lane: the item cannot be issued first. Then the importer must first submit the documents to the customs, in the original document (not just via online). After being submitted, there will be a response to SPPB

3) Red Lane: the item is expected to be issued first because it must be physically examined first. If there is no problem physically, then the response is SPPB

h. After obtaining SPPB (Letter of Expenditures Approval), PPJK then redeeming DO (Delivery Order), namely as a document that indicates to be allowed for the goods to go,

i. PPJK pays for the accumulation of goods, container handling from the ship, and some other goods payments.

j. Finally, PPJK sends the goods to the Importer or Buyer.k. If you want to see yourself from the exporter’s side, then stay

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behind the way you see it in perspective or vice versa, and depend on several regulations in the country when the goods have arrived in that country even though most regulations are just the same. Exporters only fill in the PEB data (Export Declaration), pay regular transfers, send goods to the terminal, are approved with NPE (Export Service Note). Finally, it’s finished by loading the items into containers, put it on board and sent it.

Figure. 4. A. 1. B. 3. The Flow of Goods Payment Regulations from Importers to Exporter

l. Office of Supervision and Service for Customs and Excise, Madiun

Customs is a term that is quite familiar to people or institutions that are engaged in export and import affairs, even for the general public because of the term Customs often appear in media reports. Customs are literally general taxes, namely The official department that administers and collects the duties levied by a government on imported

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goods. furthermore, excise is a tax or duty imposed on imported goods and consumer goods such as cigarettes, alcohol and so on.158 The Directorate General of Customs and Excise (abbreviated DJBC or customs) is the name of a government agency that serves the public in the customs and excise sector under the Ministry of Finance. The duties and functions of DJBC are closely related to the management of country finances, among others, collecting import duties and taxes in the context of imports (PDRI) including Import VAT, Income Tax, PPnBM (Luxury good tax) and excise. As we know that the biggest income (often called the demand income) into the country treasury is from the tax sector and includes import duty and excise which is managed by DGCE. In addition, the duties and functions of DJBC are to supervise export and import activities, supervise the circulation of beverages containing alcohol or ethyl alcohol, and the circulation of cigarettes or other tobacco processing goods. Along with the development of the times, DGCE’s function improved with its duties as a trade facilitator, who has the authority to postpone or even exempt tax with certain conditions. In general, the Directorate General of Customs and Excise has the task of carrying out the formulation and implementation of policies in the field of supervision, law enforcement, service and optimization of country revenues in the customs and excise fields in accordance with the provisions of the legislation.

During the Dutch colonial period, customs and excise were often referred to as douane. In the Dutch era, Customs and Excise officers were known as “Tollenaar” which

 158 English: Oxford Living Dictionary, Definition of customs in English, Oxford University Press, 2019, https://en.oxforddictionaries.com/definition/customs, accessed on Sunday, April 14, 2019, 12:56

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literally could be translated as a guardian of a national or coastal boundary that was tasked with collecting “Toll” or a kind of tribute to certain items brought in or out through a boundary. Along with the era of globalization, customs and excise often use the term customs. Because customs are related to a country’s income and port, it can be ascertained that since pre-colonial times (royal times), there has been a withdrawal of customs in Indonesia even though there is no documentation that confirms the above statement.159 After the Dutch and Japanese colonies which had few colonialism and occupation dramas and had differences in customs and excise handling, then, Customs and Excise Office was formed on October 1, 1946. After that, there were several name changes until finally becoming the Directorate General of Customs and Excise in the year 1965.

The Office of Supervision and Service for Customs and Excise (KPPBC) of Madiun is under the regional office of the Directorate General of Customs and Excise of East Java II, located on Jl. Larasati No.1, Kec. Kutoharjo, Madiun 63116. Syaifuddin as Director of this office explains that there are 2 general activities of Madiun KPPBC, i.e. firstly, the collection of country revenues from the excise sector, and the second is the collection of country revenues from the import duty & export duty sector.160 In the control of customs clearance for Indonesian export imports, everything has been regulated by the WCO or World Customs Organization under the auspices of the UN or United Nations and written

 159 Direktorat Jenderal Bea dan Cukai, Sejarah Bea dan Cukai, http://www.beacukai.go.id/arsip/abt/sejarah-bea-dan-cukai.html, accessed on Thursday, April 4, 2019, 14:21

 160 Result of Interview with Director of Customs and Excise Supervision and Service Office (KPPBC) Madiun, Syaifuddin, At Thursday, 10 Of January 2019. See Appendix I, No. 2

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in the Indonesian Customs Tariff Book (BTKI) regarding the price and procedural items in customs and excise. It was supplemented by a statement from Budi Santoso when interviewed,161 that at this time, customs duties were not as tariff determinants but as gatekeepers so that importers would regulate customs and excise of a country and goods. To understand this, below are some aspects of the Directorate

General of Customs and Excise:162

a. Vision• Becomes the World's Leading Customs and Excise

Institution. The vision of the Directorate General of Customs and Excise reflects the highest ideals of DJBC better through challenging and continuously maintained targets in the future.

b. Mission1) We facilitate trade and industry2) We protect borders and protect the Indonesian people

from smuggling and trade illegal and3) We optimize country revenues in the sector customs and

excise.This mission is a specific step that must be done

by DGCE to achieve the DGCE’s vision of the overall participation in relation to the amount of trade, security, and

acceptance as an inseparable entity.

c. Purpose1) Formulation of policies in the field of law enforcement,

 161 Result of Interview with Export-Import Logistics Practitioners (Owner of PT Multi Prima Mandiri), Budi Santoso, At Tuesday 12 Of February 2019. See Appendix I, No. 4

 162 Kementerian Keuangan, Direktorat Jenderal Bea dan Cukai, http://www.beacukai.go.id/index.html, accessed on Thursday, April 4, 2019, 15:18

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service, and supervision, revenue optimization countries in the field of customs and excise

2) Policy implementation in the areas of monitoring, enforcement, service and revenue optimization countries in the field of customs and excise

3) Preparation of norms, standards, procedures, and criteria field of supervision, law enforcement, service and optimization of country revenues in the customs and excise fields.

4) Providing technical guidance and supervision in the field of supervision, law enforcement, service and optimization of country revenues in the customs and excise fields.

5) Implementation of monitoring, evaluation, and reporting in the field of supervision, enforcement, law, service, and optimization of country revenues in the fields of customs and excise.

6) Implementation of administration of the Directorate General of Customs and Excise, and

7) Implementation of other functions provided by the

Minister of Finance.d. Duty

1) Directorate General of Customs and Excise are under and responsible to the Minister of Finance and led by the Director General of Customs and Excise.

2) The Directorate General of Customs and Excise has the task of carrying out the formulation and implementation of policies in the field of supervision, law enforcement, service and optimization of country revenues in the customs and excise fields in accordance with the provisions of the legislation.

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e. RoleTo apply its vision and mission, the Directorate

General of Customs and Excise has 4 roles:

1) First, collecting country revenues in terms of Export, Import, and excise.

2) Second, protect the public from problems arising from the entry of prohibited items and restrictions.

3) Third, help create a climate conducive to industrial growth and investment through customs and excise facilities.

4) Fourth, expediting the flow of goods in international

trade transactions.

2. Profile of Indonesia and Brunei

a. The Republic of Indonesia1) Profile

The Republic of Indonesia (RI), generally called Indonesia, is a country in Southeast Asia that is crossed by the equator and is located between the continents of Asia and Australia and between the Pacific Ocean and the Indian Ocean. Indonesia is the largest archipelagic country in the world consisting of 17,504 islands, alternative names commonly used are Nusantara and Archipelago. With a population of nearly 270,054,853 million in 2018,163 Indonesia is the fourth largest country in the world after China, India and the United States and also the largest Muslim country in the world, with more than 230 million people or 87.18% of Indonesia’s population.164 The form of

 163 Badan Pusat Statistik, Statistika Indonesia, https://www.bps.go.id accessed on Sunday, April 14, 2019, 10:11

164 Merle Calvin Ricklefs, A History of Modern Indonesia Since C. 1200, (Basingstoke; Stanford, CA: Palgrave; Stanford University Press, 2001, pg. 379)

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the Indonesian government is a republic, with the House of Representatives, the Regional Representative Council and the President directly elected, based directly on the political concept called Trias Politica, which is an idea where country power consists of three types of power: legislative power (making laws), the executive (implementing the law) and the judiciary (adjudicating violations of the law).

Indonesia consists of various ethnic groups, languages, and religions. Based on the national family (race), Indonesia consists of indigenous peoples namely the Southern Mongoloid / Austronesian and Melanesia, where the Austronesian people are the largest in number and most stay in the western part of Indonesia. The Javanese are the largest ethnic group with a population reaching 41.7% of the total population of Indonesia,165 followed by the Sundanese, the Batak, and Madurese who occupy the most subsequent.166 Indonesia’s national motto, “Bhinneka Tunggal Ika” (“Unity in Diversity or translated as Out of many, still one”), means the diversity that forms the country. Besides having a dense population and large area, Indonesia has natural areas that support the second largest level of biodiversity in the world.

The history of Indonesia is much influenced by other nations.167 The Indonesian archipelago became an important

 165 Leo Suryadinata, Evi Nurvidya Arifin, Aris Ananta; Indonesia’s Population: Ethnicity and Religion in a Changing Political Landscape; (Singapore: Institute of Southeast Asian Studies, 2003), pg. 33

 166 Badan Pusat Statistik, Kewarganegaraan, Suku Bangsa, Agama dan Bahasa Sehari-hari Penduduk Indonesia Hasil Sensus Penduduk 2010, 2011. ISBN 9789790644175. https://sp2010.bps.go.id/files/ebook/kewarganegaraan%20propuduk%20indonesia/ index.html accessed on Saturday, April 13, 2019, 10:11

 167 Read more at: Adrian Vickers, A History of Modern Indonesia, (United Kingdom: Cambridge University Press, 2005), pg. 3

Read also: Jean Gelman Taylor, Indonesia: Peoples and Histories, (New Haven and

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trading area since at least the 7th century, started when the Srivijaya Kingdom in Palembang established religious and trade relations with China and India. Hindu and Buddhist kingdoms had grown in the early AD, followed by traders who brought Islam, as well as various European powers who fought each other to monopolize the Moluccas spice trade during the era of ocean exploration. After being under Dutch colonialism, Indonesia, which was then called the Dutch East Indies declared its independence at the end of World War II. Furthermore, Indonesia gets various obstacles, threats, and challenges from natural disasters, corruption, separatism, democratization processes and periods of rapid economic change.

The four main pillars that become the basic values and consensus that have supported the establishment of the Republic of Indonesia so far are Pancasila, The 1945 Constitution, Bhinneka Tunggal Ika, and the Unitary State of the Republic of Indonesia (NKRI). The Republic of Indonesia consisting of various regions and tribes that has a variety of regional languages. But the unifying language or the national language used is the Indonesian Language. Indonesia uses red and white as the color of the flag. Red means brave. White means holy. Indonesia Raya is the national anthem of the Indonesian people.

Indonesia is a member of the United Nations and was the only member who had left the United Nations, exactly on January 7, 1965,168 and rejoined on September 28, 1966, and Indonesia was still declared a member of the 60th, the same

London: Yale University Press, 2003), pg. 362

 168 Iman Toto K. Rahardjo, Bung Karno dan tata Dunia Baru, (Jakarta: Gramedia, 2001), pg. 371

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membership position since joining Indonesia on September 28, 1950. In addition to the United Nations, Indonesia is also a member of the Association of Southeast Asian Nations (ASEAN), the Asia-Africa Summit or the Bandung Conference (KAA), Asia Pacific Economic Cooperation (APEC), the Organization of Islamic Cooperation (OIC), Group of Twenty major economies (G-20) as well as potential members and main partners of the Organization

for Economic Cooperation and Development (OECD).

2) Geographical Position and DemographyIndonesia is an archipelago in Southeast Asia that

has 17,504 large and small islands, about 6,000 of which are uninhabited, then which spread around the equator, others provide tropical weather. The position of Indonesia is located at coordinates 6 ° N-11 ° 08’LS and from 95 ° ‘BT - 141 ° 45’ East and is located between two continents, i.e. Asia continent and Australia / Oceania continent. The territory of Indonesia stretches along 3,977 miles between the Indian Ocean and the Pacific Ocean. The land area of Indonesia is 1,922,570 km2 and its water area is 3,257,483 km2. Jakarta is the capital city of the Republic of Indonesia. The most densely populated island is Java, where half of Indonesia’s population lives. Indonesia consists of 5 major islands, namely: Java with an area of 132,107km2, Sumatra with an area of 473,606 km2, Kalimantan with an area of 539,460 km2, Sulawesi with an area of 189,216 km2, and Papua with an area of 421,981 km2. Indonesia borders land with Malaysia on the is land of Borneo, with Papua New Guinea on the island of Papua and with Timor Leste on the island of Timor. Other neighboring countries are Singapore, the Philippines, A ustra l ia and the unit e d region of the

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Andaman and Nicobar Islands in India.

Indonesia is the largest Muslim country in the world, although officially it is not an Islamic Country because it has 5 other official religions namely Protestant (7%), Catholic (3%), Hinduism (1.7%), Buddhism (0.7%), Confucianism (0.2%) and the highest is Islam, which is 87%.169 The official language is Indonesian. The form of the Indonesian government is a republic, with the People’s Representative Council of Indonesia (DPR) and the president directly elected. Following is the profile of Indonesia:

Table 4. A. 2. A. 1. Profile of Republic of Indonesia

Capital City Jakarta

Official language Indonesian Language

Government Republican Presidential

President Joko Widodo

Vice President Jusuf Kalla

Independence

- Proclaimed August 17, 1945

- Recognized (as RIS) December 27, 1950

- Return to RI 17 August 1950

Area

- Total 1,904,569 km2

- Water (%) 4.85

Population

- Estimated 2015 255,461,700

- Census 2010 237,556,363

- Density 124,66 / km2

Religion

 169 MC Ricklefs, A History of Modern ......, Pg. 379.

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- Islam 87.2%

- Christian 9.9%

- Protestant 7.0 %

- Roman Catholicism —2.9%

- Hinduism 1.7%

- Buddha 0.7%

- Confucianism 0.2%

GDP (nominal) 2017

- Total $ 1.015 trillion

- Per Capita $ 3,870

Currency Rupiah (Rp) (IDR)

Time Zones Various(UTC 7+ to 9 +)

Steering lane Left

Telephone code 62

Source: (Processed) Portal Nasional RI and Badan Pusat Statistika

3) Natural ResourcesIndonesia’s natural resources are oil, coal, tin, natural

gas, nickel, bauxite, fertile soil wood, gold, and silver, then, by dividing the land consists of agricultural land by 10%, plantations by 7%, grass shoots of 7%, forests and forested areas by 62%, and others by 14% with irrigated land covering 45,970 km.170 Its strategic geographical location shows how rich Indonesia will be in its natural resources with all its flora, fauna and hydrographic potential and abundant natural resource deposits. Indonesia’s natural resources come from agriculture, forestry, maritime affairs and fisheries, livestock, plantations, and mining and energy.

 170 The World Bank, A World Bank country study Country Studies: Indonesia: environment and development. (Washington, DC: World Bank Publications, 1994), pg. 38

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Based on plant age, plantations in Indonesia are divided into two major groups, namely season crops (sugar cane, tobacco, cotton, spacing, fragrant lemongrass, patchouli and flax) and annual crops (rubber, coconut, coffee, oil palm, cloves, nutmeg, wood sweet, vanilla, candlenut, areca nut, tamarind, siwalan, nipah, coconut palm, sugar palm and sago). Most of the plantation cultivation is in the form of annual plants.

Indonesia itself is a country with the second highest biodiversity in the world after Brazil.171 The high level of biodiversity in Indonesia is indicated by the existence of 10% of flowering plants known in the world can be found in Indonesia, 12% of mammals, 16% of reptile animals, 17% of birds, 18% of species of coral reefs, and 25% of marine animals. In the field of agriculture, Indonesia is also well-known for its wealth of plantation crops, such as cocoa beans, rubber, oil palm, cloves, and even wood, many of which rank in the top in terms of production in the world.

The livestock population in Indonesia consists of large livestock populations such as dairy cows, beef cattle, buffaloes, and horses. Small livestock populations include goats, sheep, and pigs. While the poultry population consists of native chickens, laying hens, broilers, and ducks. Among the livestock products that currently have exported, prospects are processed leather (tanned).

The physical fact that two-thirds of Indonesia’s territory is in the sea, then the natural resources in the sea have large potential. In addition, that Indonesia still

 171 Kristina von Rintelen, Evy Arida, Christoph Häuser, “A review of biodiversity-related issues and challenges in Indonesia and other Southeast Asian countries”, Research Ideas and Outcomes, No. 3: e20860, 2017., pg. 3

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containing non-conventional oil, gas, minerals and marine energy, as well as the treasure that has begun to be excavated even though it is still limited, the sea also produces fish with potential for conservation of 6.4 million tons per year. At present, only 70% are used. The development of marine and fisheries resources is grouped in five marine industries, i.e. the fishing industry, the mineral and marine energy industry, the maritime industry, including the shipbuilding industry, the shipping industry (sea transportation) and the tourism industry (marine tourism and conservation areas). At present, the mainstay of Indonesian fisheries exports is shrimp and tuna.

Most of the extensive plantation land in Indonesia produces agricultural commodities or agricultural crops to be traded. Indonesia itself is known as an agricultural country because most of Indonesia’s population has a livelihood in agriculture or farming, with 30.46% of the population working in agriculture.172 Indonesia is one of the three largest rubber producing countries in the world, the third largest producer of coffee, and one of the world’s leading producers of coconut, tobacco, cocoa, and spices. Indonesia’s territory is rich in mineral reserves such as tin, copper, gold, bauxite, and nickel. Indonesia is also known as the largest exporter of liquefied natural gas (LNG). Income from oil exports has brought the biggest foreign exchange to the country. In addition, efforts to develop alternative energy sources continue to be encouraged. The development of geothermal power plants and hydroelectric energy continues

 172 Based on data from Badan Pusat Statistika, Analisa Angkatan Tenaga Kerja Berdasarkan Sektor,, https://www.bps.go.id/dynamictable/2018/05/17/1314/percentages-power-work-informal-sector-farms-2015- --2018.html accessed on Friday, April 12, 2019, 11:20

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to be cultivated.

In addition to the agricultural sector and raw material exports which dominate economic activities, Indonesia has also become an industrial country in the last 35 years. Some of the major industries in Indonesia are iron processing, oil, wood and furniture, chemical products, cement, glass, and products made from rubber, machinery, and fertilizers. Some industries are directly controlled by the government, namely business activities called BUMN (State-Owned Enterprises). Indonesia also seeks to develop high-tech industries, such as electronic goods and airplane. The textile industry was also developed on a large scale, including the batik industry, namely cloth that was given a distinctive Indonesian motif art, both with traditional techniques (written batik) and with modern prints (printed batik). In 2011, the industry contributed the US $ 122 billion or 60 percent of the total export value. Other non-oil and gas sectors, there are agriculture and mining sector, which each of them contributed 2.54 percent and 17.02 percent of total exports. Meanwhile, the oil and gas sector exports only

reached the US $ 41 billion or 20.43 percent of total exports.173

4) Indonesian EconomyThe Indonesian economic system was initially

supported by the launch of Oeang Repoeblik Indonesia (ORI) which became the first currency of the Republic of Indonesia, which subsequently changed to Rupiah.174

 173 Based on data from Badan Pusat Statistika, Analisa Komoditi Ekspor, 2010-2017, Sektor Pertanian, Industri dan Pertambangan. https://www.bps.go.id/publication/2018/07/02/57ec2cf09e639209747dfd44/ analis-komoditi-ekspor--2010-2017--sektor-pertanian--industri-dan-pertambangan.html accessed on Sabru, April 13, 2019, 09:12

 174 Bank Indonesia, Oeang Republic of Indonesia (ORI) Emission I, https://www.

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During the Old Order government, Indonesia did not fully adopt the capitalist economic system, but also integrated it with economic nationalism. An inexperienced government is still interfering in several production activities that affect many people. This, coupled with political turmoil, resulted in instability in the country’s economy.175

The government of the New Order immediately implemented economic discipline aimed at reducing inflation, stabilizing the currency, rescheduling foreign debt, and trying to attract foreign aid and investment. In the era of the 1970s, the rising oil prices caused a surge in export value and triggered a high rate of economic growth of 7% between 1968 and 1981.176 Further economic reforms towards the end of the 1980s included deregulation the financial sector and the weakening of the rupiah’s controlled value, then flowing foreign investment into Indonesia, especially in export-oriented industries between 1989 and 1997. The Indonesian economy experienced a setback in the late 1990s due to the economic crisis that hit most of Asia at that time which was also accompanied by the end of the New Order period with the resignation of President Soeharto on May 21, 1998.

At present, the Indonesian economy has been quite stable. Indonesia’s GDP growth in 2017 and 2018 reaches 5.07% and 5.17% and is expected to continue.177

bi.go.id/id/E404.aspx?RequestedUrl=https://www.bi.go.id:443/web/id/Tentang+BI/Museum/Koleksi/Uang/Uang+ Paper / detail.htm? Id = 62 accessed on Saturday, April 13, 2019, 11:20

 175 Adam Schwarz, A Nation in Waiting: Indonesia in the 1990s. (San Francisco: Westview Press, 1994). Pg. 52.

 176 Adam Schwarz, A Nation in Waiting, .....,. Pg. 52 177 Kementerian Perdagangan Republik Indonesia, Statistik Produk Domestik Bruto,

http://www.kemendag.go.id/id/economic-profile/economic-indicators/gross-domestic-product accessed on April 13, 2019, 12:01

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Unemployment even though the number is numbered millions, also decreased from 2017 to 2018, which amounted to 40.000 people with a percentage of 5.34% to 5.13%.178 Currently, Indonesia’s biggest trading partners are China / China ($ 25.8 Billion / 14%), United States, ($ 19.9 Billion / 11%), Japan ($ 19 Billion / 10%), South Korea ($ 9.23 Billion / 4.9%) and neighboring countries, like Malaysia, Singapore, the Philippines and Thailand.179 Even though it is rich in natural and human resources, Indonesia still faces major problems in the field of poverty which is largely due to rampant corruption in government. The Institute Transparency International ranked Indonesia 110th out of 180 countries with an index score of 2.8 in the Corruption Perception Index, which was issued in 2010, then increased again to rank 100 in 2011, and in 2018 it rose to position 89 with a value index 3.8180.

Figure. 4. A. 2. A. 4. Indonesian Trade Balance

Based on data from Badan Pusat Statistika, Tingkat Pengangguran 178 

Terbuka https://www.bps.go.id/pressrelease/2018/11/05/1485/agustus-2018--tingkat-

pengangguran-terbuka--tpt--sebesar-5-34-persen.html accessed on April 13, 2019, 11:58

The Observatory of Economic Complexity, Indonesia, https://atlas.media.mit. 179 

edu/en/profile/country/idn/#Exports Accessed on Saturday, April 13, 2019, 11: 44

Transparency International, CORRUPTION PERCEPTIONS INDEX 180 

2018: Indonesia, 2019 https://www.transparency.org/cpi2018 , pg. 03

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Source: Badan Pusat Statistika (Statistics Indonesia)Trade Balance is the difference between exports and

imports from visible trade (by being measured using the prevailing currency at those time), or in another word, from the trading of visible goods. If the trade balance value is positive, this means that exports of goods appear to exceed the value of their imports. But if the trade balance shows negative, this means that the value of imports exceeds exports.181 Above is the figure of Indonesia’s trade balance in the last 10 years. The figure above shows that the highest trade balance is in 2011 and there was a deficit in 2013. In 2014 to 2015, fluctuations occurred and tended to fluctuate and then became a surplus to the end of 2017. Then the deficit returned in 2018. Following is a list of Indonesian economy tables:

Table. 4. A. 2. A. 4. Profile of the Indonesian Economy

Currency Rupiah

Fiscal year The calendar year

Trade organizations APEC, ASEAN, WTO, ACFTA

GDP Ranked 16th

GDP growth 5.17% (2018)

GDP per capita of The US $ 51.89 million (2018)

GDP by sector agriculture: 13.63%, industry: 32.07%, services: 25.94% (2018)

Inflation 3.13% (2018)

Labor force 124.01 million (2018)

 181 Tutik Wiryanti, “Korelasi Ekspor Dan Impor Terhadap Neraca Perdagangan Dan Neraca Pembayaran Di Indonesia Tahun 2003-2013”, KREATIF | Jurnal Ilmiah Prodi Manajemen Universitas Pamulang | Vol. 2, No.2, 2015, pg. 116.

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Labor force by sector:

the agricultural 30 , 46%, industry: 14.11%, Trade: 18.53% (2018)

Unemployment 5.13% (2018)

Main industries Oil and natural gas, textiles, clothing, shoes, mining, cement, chemical fertilizers, plywood, rubber, food, tourism

Export (2018) The US $ 180.06 billion

Main commodities electricity, plywood, textiles, rubber, coal, palm oil (CPU)

Trade partners United States, China, Japan, the European Union

Import (2016) The US $ 188.62 billion

Main commodities machinery & equipment, vehicles, chemicals, fuel, foodstuffs, crude oil

Trading partner China, Singapore, Japan, Malaysia, Thailand, USA, Korea Selatan

Import-Export Deficit The US $ 8.5 billion (2018)

Source: Badan Pusat Statistika and Kementerian Perdagangan Indonesia (Ministry of Trade)

b. The Nation of Brunei Darussalam1) Profile

Brunei Darussalam or Brunei, officially named: Negara Brunei Darussalam, (Malay: Negara Brunei Darussalam, Jawi: نڬارا بروني دارالسلام), which translates with the Nation of Brunei, the Abode of Peace, is an independent country in Southeast Asia located on the northern coast of the island of Borneo. The country has an area of 5,765 km² that occupies the island of Borneo Coastline touches the whole South China Sea. Its area is separated into two states in Malaysia, i.e. Sarawak and Sabah. The name Borneo

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or another name for Kalimantan Island is taken from the name of this country.182 This is because in the days of the 15th century to the 17th century, the Kingdom of Brunei stretched to the entire island of Borneo and also some part of the Philippine archipelago.183 Brunei Darussalam has a Human Development Index with a value of 0.853 ranked 39th, the second highest in Southeast Asia after Singapore (0.932 / 9th), so it is classified as a developed country, although there are still many shortcomings in Human Resources and Natural Resources that make it categorized as a developing country. In addition, Brunei is also famous for its prosperity and firmness in implementing Islamic law, both in the field of government and life community. Brunei Darussalam was formed as a kingdom where the country had the style of government and monarchical absolute with the Sultan who served as Head of State and Head of Government, concurrently as Prime Minister and Minister of Defense assisted by the Vizier, Sultanate Advisory Council (Chiteria) and several Ministers.184 Sultan was the head of country with full executive power since 1962. The role and function of the sultan were enshrined in the national philosophy or slogan of the country which was recognized as the Melayu Islam Beraja (Malay Islamic Monarchy/MIB). The three components of MIB are Malay culture, Islam and the political system under royal monarchy rule.185

 182 AH Hubbard, Transactions of the Batavian Society of Arts and Science, (Batavia: Government Press 1814), pg. 21.

 183 Global Investment & Business Center, Brunei: Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah Handbook, (Washington, DC: International Business Publication, 2008) pg. 43

 184 Mohd. Jamil Al-Sufri, Adat Istiadat Diraja Brunei. (Bandar Seri Begawan: Jabatan Adat Istiadat Negara, 2002), pg. 20

 185 G. Braighlinn, Ideological Innovation under Monarchy: Aspects of Legitimacy

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The population of Brunei is 421,300 with a 1% increase in 2017, where 75% of the population lives in urban areas including 97% of the population lives in the greater western regions and only about 10,000 (3%) people live in the Temburong area, which is in the east of Brunei. From Bruneian’s population, approximately 46,000 people live in the Capital City, Bandar Seri Begawan.186 About two-thirds of Brunei’s population are Malays. The most important ethnic minority group that controls the country’s economy is the Chinese (Han) who comprise approximately 15% of the population. These ethnicities also describe the most important languages: Malay which is the official language. The Malay language spoken in Brunei is different from other archipelagic countries because Bruneian use Brunei’s Malay dialect as a means of speech and conversation.187 Brunei’s culture seems to be the same as Malay culture, with a strong influence from Islam, that makes it looks more conservative than Malaysia and Indonesia. English is also spoken extensively and nearly 95% of the population is fluent in English, and there is a rather large expatriate community with a large number of British and Australian citizens because Brunei is included in the Commonwealth on January 1, 1894. Flag of Brunei introduced on September 29, 1959, during Brunei was a British protectorate and was determined when Brunei reached independence on January 1, 1984. This flag consisted of the red symbol of the country

Activity in Contemporary Brunei, Comparative Asian Studies, No. 9, (Amsterdam: VU University Press, 1992), pg. 42.

 186 Jabatan Perancangan dan Kemajuan Ekonomi, Brunei Darussalam Key Indicators 2017: Summary Tables of the Population Census, Bandar Seri Begawan: Department of Statistics, 2018, pg.3

 187 Peter W. Martin, Conrad Ozog, Gloria R. Poedjosoedarmo, Language use & language change in Brunei Darussalam. (Athens: Ohio University Press, 1996), pg. 74

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in the middle with a yellow background and black and white lines in the flag field.

Brunei Darussalam is known to have existed since the 6th century, making it the oldest kingdom among Malay land kingdoms, and becoming one of the countries in Asia besides Bhutan which still uses a monarchical system of government until today. The history of Brunei has been written by many records in ancient times, such as old Chinese literature, Arabic and oral traditions such as Syair Awang Semaun, epitaphs and so on. In the Syair Awang Semaun record, it is stated that Brunei originated from baru nah, which long time ago, after the clan group of Sakai tribe that’s come from Srivijaya kingdom led by Pateh Berbai went to Brunei River to find a place to establish a new country.188 Then the words baru nah (Here is new) were eventually changed to Brunei. Afterward, Brunei passed many colonizing and colonized dramas, civil war and so on, then, in the end, Brunei Darussalam became independent in 1984. The addition of the word Darussalam was given by Sultan Syarif Ali, the 3rd Sultan in the 15th century, which meant the Abode of Peace in Arabic terms, aimed at asserting Islam as a religious country, as well as to increase

its spread.189

2) Geographical Position and DemographyBrunei is surrounded by Malaysia in the south, west

and South China Sea in the north and the Brunei Bay in the northeast. Brunei is divided into four districts, there are Brunei and Muara, Tutong, Belait and Temburong. From

 188 Mahmud Saedon bin Awang Othman, Pemimpin Era Baru, (Bandar Seri Begawan: Univesitas Brunei Darussalam, 1996), pg. 14.

 189 Global Investment & Business Center, Brunei Sultan ..., pg. 123

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these 4 districts, Brunei consists of two seperate parts; 97% of the population lives in the larger western part which consists of 3 districts, and only about 10,000 people living in the Temburong area, which is separated by the Limbang area, part of Sarawak, Malaysia. The population of Brunei is 421,300 people.190 Approximately 80,000 people live in the capital city of Bandar Seri Begawan. The area of the country is 5,765 km², with the position of the coordinates 4 ° 53,417′N - 114 ° 56,533′E. There is a number of major cities include the port city of Muara, and the oil-producing c ity of Seria, and Kuala Belait, the city next to it. In the Belait area, the Panaga area is the hometown of a large number of expatriates, due to the housing and recreational facilities of Royal Dutch Shell and the British Army.

Brunei’s climate is the equatorial tropical, with high temperatures and humidity, with hot sunlight and heavy rainfall throughout the year. Most areas in Brunei consist of low soil tropical rainforests that meet most of the island of Borneo. However, there are also mountain forest areas mainly in the eastern part of Brunei (Temburong). Brunei’s climate is an equator type which is a climate that has high temperatures and humidity as well as a sprinkling of sunshine and heavy rains throughout the year. The temperature is approximately 26.1 ° C (79.0 ° F). In April to May the temperature is slightly low, which is 24.7 ° C (76.5 ° F) and in October to December also shows a slight increase in the temperature of 23.8 ° C (74.8 ° F).191

Based on the Constitution of Brunei Darussalam

 190 Jabatan Perancangan dan Kemajuan Ekonomi, Brunei Darussalam Key... pg. 3 191 Brunei Darussalam Meteorological Department, Brunei Climate http://www.

bruneiweather.com.bn/climate, accessed on Saturday, April 13, 2019, 15:51

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which began in 1984, the ethnic Brunei Darussalam consists of clans or teak clans officially under the national registration of ethnic Malays (66.3% of the population comprises two-thirds of Brunei) named Brunei, Kedayan, Tutong, Dusun, Belait, Murut and Bisaya.192 However, the permanent population of Brunei Darussalam also consists of a number of nations such as the Chinese, (10.3%), non-Malays (3.4%), English, Indians and major ethnic groups from Sarawak and Sabah, Malaysia such as Iban and Kedayan. Islam is Brunei’s official religion with a total population of 67% and the Sultan of Brunei is the head of the country’s religion. Other religions that were followed included the Buddha who was followed by the Chinese (13%), Christian (10%) and animist beliefs (with a very small amount which was approximately 2%).

 192 Peguam Negara, Perlembagaan Negara Brunei Darussalam, (Timbalan Penasihat Undang-Undang Kanan Brunei Darussalam: Warta Kerajaan Negara Brunei Darussalam, 2016), Pasal 65/04

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Table. 4.A.2.B.1 Profile of The Nation of Brunei Darussalam

Capital City Bandar Seri Begawan

Official Language Malay and English

Government Islamic Unitary Absolute Monarchy

Sultan

HIS MAJESTY SULTAN HAJI HASSANAL BOLKIAH MU’IZZADDIN

WADDAULAH IBNI AL-MARHUM SULTAN HAJI OMAR ‘ALI

SAIFUDDIEN SA ‘ADUL KHAIRI WADDIEN, SULTAN YANG

DIPERTUAN NEGARA BRUNEI DARUSSALAM

Establishment

- Kingdom of Po-ni 7th Century

- Sultanate formation 1363 AD

- Empire of Brunei from the 15th to the 19th century

- British Protectorate September 17, 1888

- Japanese Occupation 1941 - 1945

-Independence from

Great BritainJanuary 1, 1984

- ASEAN Declaration January 7, 1984

Area

- Total 5,765 km2 (2,226 sq mi)

- Water (%) 8.6

Population

- Estimated (2018) 421,300

- Density 73.03 / km2 (186, 8 / sq mi))

2017 (nominal GDP

- Total $ 14,695 billion

- Per Capita $ 33,824

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Currency Brunei Dollar (B $) (BND)

Steering wheel Left

Time Zone (UTC +8)

Telephone code 673

Source: National Statistic, IMF and JPKE 3) Natural Resources

Brunei Darussalam has the main natural resources in the form of oil. The oil fields are the most oil reserves in Southeast Asia. Offshore oil fields are in Kuala Belait, Ampar, and Jerudong. Brunei relies on oil and gas for a total of 90% of its export revenues and more than half or around 60% of its Gross Domestic Product.193 The average oil produced is as much as 20,000 barrels per day. Actually this type of natural resource is limited, and will run out if it continues to be exploited. Therefore, the government seeks to develop other economic sectors such as industry, trade, and tourism. Besides oil, there are also wood, natural gas, coconut, rubber and so on.

According to data of World Bank, Brunei only forms 2.7% of its country for the agricultural sector and only 1.1% of its country GDP in 2017, and more than 80% of its food comes from foreign imports.194 Overall competitiveness of the agricultural sector is weak although it keeps improving.195 Rice is one of the most important food crops in Brunei because large quantities of rice are consumed by the people of Brunei. Even though it’s important, only 1% of the rice

 193 Koh Wee Chian, “A Macroeconomic Model of Brunei ...., pg.70. 194 World Bank, Agriculture, forestry, and fishing, value added (% of GDP) https://

data.worldbank.org/indicator/nv.agr.totl.zs accessed on Saturday, April 13, 2019, 17:13  195 Wen-Jen Hsieh, Haji Ismail Bin Haji Duraman, Chris DiCicco, Ming-Ming Lin,

“National Competitiveness of Brunei: Moving Beyond Natural Resources”, Asia Pacific Management Review 9 (20), 2004. pg. 188

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eaten in this country is grown domestically. Brunei prefers to import rice from Thailand, with the fact that in 2017, Brunei has imported a total value of US $ 11.72 million.196 The Brunei government has taken several steps to modernize the country’s agricultural sector such as introducing technology and irrigation schemes. The government also set a new discourse so that Brunei is better at exploring it’s potential named “Wawasan Kebangsaan Brunei 2035” (Brunei National Vision 2035)197. This program aims to transform from a country that relies on exports of oil and gas products to a country with a science-based economy.198 Apart from the steps taken by the government, in reality, the country’s agricultural sector failed to grow. The lack of growth in Brunei’s agricultural sector is because most Brunei people are not interested in working in this sector. According to the Brunei Department of Labor, only 3.09% of Brunei’s workforce works in the country’s agricultural sector, namely in the field of agricultural and farmer business, which is 13,230 people.199 Lack of interest is caused by low salaries received by Brunei’s agricultural sector. However, Brunei has been considered self-sufficient in the production of

 196 Based on data from the United Nations Commodity Trade Statistics database, Import Brunei from Thailand. https://comtrade.un.org/db/dqBasicQueryResults.aspx?cc =TOTAL&px=HS&r=96&y =all&p=764&rg=1,2&so=1&rpage=dqBasicQuery&qt=n accessed on Sunday, April 14, 14:21

 197 Abdul Amin Haji Hashim, “Challenges in Achieving Wawasan 2035 Goals: Economic Diversification in Perspective”, CSPS Strategy and Policy Journal, 2010, Volume 1, pg. 29-54.

 198 Government of Brunei Darussalam. Brunei Insights 2035, 2014, accessed on April 16, 2019, 12:08 https://www.brunei.gov.bn/SitePages/Wawasan%20Brunei%202035.aspx

 199 The Department of Agriculture and Agrifood of Brunei Darussalam, Brunei Darussalam: Agriculture & Agrifood Statistics 2017, 2018, pg. 2 http://www.agriculture.gov.bn/SiteCollectionDocuments/Statistik/Brunei%20Darussalam%20Agriculture%20Agrifood%20Statistics%202017.pdf

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vegetables, eggs, cattle, buffaloes and almost self-sufficiency

in poultry, which is generally chickens.200

4) Economy of Brunei DarussalamIn historical records, in the 7th century, the Brunei

region became one of the transit ports and trade centers of China, Arabia, and India. In some historical records, China mentions the Brunei region with several terms namely Po-li, Po-lo, Poni or Puni and Bunlai. While in the Arabic records, Brunei is better known as Dzabaj or Randj. The mention of these names can be said to be the period of the Old Brunei Empire. The Pu-ni people trade by exchanging mats, gold, pottery, porcelain, silverware, silk cloth, gauze, and paper. The items obtained from China in the form of camphor, deer antlers, tin, bracelets from elephant ivory, turtle skin, bird nests, fragrances, sandalwood, and spices. It was also noted that when Brunei was still the territory of Majapahit, the King of Brunei gave camphor and young areca juice every year as tribute.201 During the Bolkiah sultan V, the expansion of the Brunei sultanate included Suluk and Seludang. Sultan Bolkiah V married the king of Suluk’s daughter and crippled Seludang. This political marriage resulted in Brunei’s increasing power reaching the Philippines, even Suluk and Seludang (Manila) delivering a tribute to Brunei every year.202

The Nation of Brunei Darussalam, as well as a number of Middle Eastern countries, are countries that surprise many political, social and economic research experts about how

 200 The Department of Agriculture and Agrifood of Brunei Darussalam, Brunei Darussalam ..., pg. 23-42

 201 Daniel George Edward Hall, Sejarah Asia Tenggara, (Surabaya: Usaha Nasional, 1975), pg. 82-83

 202 Haji Zain bin Haji Serudin, Pendekatan Mengenai Islam di Brunei Darussalam” Studi islam di Asia Tenggara. (Surakarta: Muhammadiyah Universitas Press,1999), pg. 77

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great an authoritarian kingdom-based country in facing the modernization and globalization203. These kingdoms that are highly dependent on oil and gas have a legitimacy formula based on religion, culture, and tradition. So, along with that, the development in the social culture and the economy grew rapidly, which was supported by an abundant welfare program. The rulers try to form strong and long-lasting relationships with their people.204

Unfortunately, for these countries, this will be felt if the oil price rises or falls. This means that Brunei’s economy is heavily dependent on the extraction of its natural resources, Brunei relies on oil and gas for a total of 90% of its export revenues and more than half or around 60% of its Gross Domestic Product.205 And so, the decline in world oil prices in early 2015 until the end of 2017 has an impact on the economy in a number of countries, especially oil and gas producing countries, including Brunei Darussalam.

The Government of Brunei Darussalam before the crisis made serious steps in diversifying its economy to ensure its stability and economic sustainability in a national strategy called “ Wawasan Kebangsaan Brunei 2035” (Brunei National Vision 2035)206. This program aims to transform Brunei from a country that relies on exports of oil and gas products to a country with a science-based economy.207 This effort was demonstrated by establishing

 203 Christopher M. Davidson, The United Arab Emirates..., pg.118. 204 Lisa Anderson, “Absolutism and the Resilience ..., pg. 4 205 Koh Wee Chian, “A Macroeconomic ..., pg.70. 206 A.A.H Hashim, “Challenges in Achieving Wawasan 2035 Goals:...., pg. 30. 207 Government of Brunei Darussalam. Wawasan Brunei 2035, 2014, accessed on

April 16, 2018, 12:08 https://www.brunei.gov.bn/SitePages/Wawasan%20Brunei%202035.aspx

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an Industry Competency Framework, which previously focused on the oil and gas sector, broadening its focus by forming the empowerment of potential local workers to work in the industrial sector, so that Small and medium-sized enterprises (SMEs) will have Brunei citizens who are ready to use for work.208

In the first year, Brunei Darussalam had experienced negative growth which caused a country deficit until 2017, seen from the assessment of the International Monetary Fund or IMF (report International Monetary Fund).209 While from the results of consultations between the IMF and the Brunei government, it is projected that real GDP will continue to experience negative growth in 2017 (-0.7% versus -2.5% in 2016). The fiscal position will still be a deficit in the next few years because of the background of the low oil prices. While for 2018, the IMF estimates Brunei’s GDP growth will achieve positive growth but not as large as 0.7%.210 But the 2015 assessment increased due to the economic diversification program that was quite running. In the report Doing Business 2018, it was stated that Brunei Darussalam was ranked first in the most improved economy world for the third time in a row.

Brunei in 2018 reached rank 56 or rose 16 ranks from 190 in economies, compared to the previous year.211 In

 208 Ibid 209 International Monetary Fund, Asia and Pacific Department. Brunei Darussalam:

Statistical Appendix, Washington, DC: International Monetary Fund Publication Services, 2015, pg. 3, accessed on 10 April 2018, 10:21 https://www.imf.org/en/Publications/CR/Issues/2016/12/31/Brunei-Darussalam-Statistical-Appendix-42988

 210 Azlan Othman, Brunei’s GDP to grow by 0.7pc in 2018: IMF, Borneo Bulletin Online, 2017 https://borneobulletin.com.bn/bruneis-gdp-grow-0-7pc-2018-imf/ accessed on 10 April 2018, 10:35

 211 The International Bank for Reconstruction and Development, World Bank. Doing

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ASEAN, Brunei was ranked number 4th, below Singapore (2), Malaysia (24) and Thailand (26), then followed by Vietnam (68), Indonesia (72), Philippines (113) and so on. Even so, the Nation of Brunei Darussalam is the only country in ASEAN that has experienced a recession for three consecutive years due to falling oil prices. At present, Brunei Darussalam’s biggest trading partners are Japan ($ 1.68 Billion / 30%), South Korea ($ 795 Million / 14%), Malaysia ($ 627 Million / 11%), India ($ 541 Million / 9.8%) and countries neighbor, namely Singapore, Malaysia and Thailand.

Figure. 4.A.2.B.4 Brunei Trade Balance

Source: JPKE (Department of Economic Planning and Development) The figure above shows Brunei’s trade balance from

2008 to 2018. As explained, the trade balance is the value of exported goods minus the value of imported goods. A positive trade balance signifies a trade surplus, while a negative value indicates a trade deficit. From the figure above, it can be concluded that Brunei’s trade balance has never been a deficit, even though the surplus has decreased even close to zero.

Business Report | Measuring Business Regulations, Brunei Darussalam, 2017. ,http://www.doingbusiness.org/data/exploreeconomies/brunei accessed on April 10, 2018, 11:21

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This means that his government is very wise in controlling his economy.

Table 4.A.2.B.4 Profile of the Economy of Brunei Darussalam

Currency Dollar (B$) (BND)

Fiscal Year Calendar Year

Trade organizations APEC, ASEAN, WTO, ACFTA

GDP Ranking 126th

GDP Growth 4.8%(2018)

GDP per capita of US $ 30.29 (2018)

GDP by sector agriculture: 1.1% industry: 56.5 %%, services: 42.3% (2018)

Inflation -0.2% (2018)

Labor force 48 232 (2017 )

Labor force by sector agricultural: 1.4%, industry: 16.1%, service: 82.5% (2017)

Unemployment 9.3% (2017)

Main industries oil and natural gas

Export (2017) $ 8,302.4 Million BND

Main commodities of oil and gas, chemicals

Trading partners Japan, South Korea, Singapore, Malaysia, India

Imports (2016) $ 5,962.8 BND

Major Commodities vehicle, Manufacturing, Food

Trading partners China, Singapore, Malaysia. USA, UK

Export-Import Surplus $ 2,339.6 Million BND

Source: National Statistic, IMF (Dana Moneter Internasional) and JPKE

B. Data Analysis Results

1. Hypothesis Testing Analysis (Export & Import TOT Analysis)

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a. Development of Brunei Export and Import Values with Indonesia in 2011-2018

Brunei Darussalam with a population of 422,678 people (JPKE-2016)212 and a relatively high level of public purchasing (Brunei Dollar / BND 37,257 or around USD28,000)213 has become the target market for a number of countries. Domestic demand has not been matched by production capabilities so the Brunei market is filled with imported products, including products from Indonesia.

Especially in the trade sector, the trade value of the two countries is relatively small and the deficit is on the Indonesian side.214 Indonesia’s deficit is influenced by the value of imported mineral fuels from Brunei Darussalam. Indonesia’s efforts to reduce deficits is by increasing the value of exports, especially Indonesian exports to Brunei Darussalam, occurred in 2013. However, Indonesia’s exports fell by 31% in 2014 and fell again in 2015 by 8.8%. The decline in the value of Indonesia’s exports is not inseparable from the influence of the global economy and the declining purchasing power of the Brunei Darussalam market. But then, Brunei’s exports to Indonesia have increased again as the world oil prices normalized in mid-2018 although become falling back again at the end of the year. Unfortunately, Indonesian exports actually declined.

 212 Based on 2016 Department of Economic Planning and Development (JPKE) data http://www.depd.gov.bn/SitePages/ National% 20Statistics.aspx

 213 Based on JPKE data about 2017 Economic Growth http://www.depd.gov.bn/SitePages/Economic%20Development%20Planning.aspx

 214 The trade balance can be traced clearly at https://id.tradingeconomics.com/brunei/balance-of-trade accessed on April 10, 2018

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Table. 4.B.1.A Development of Brunei and Indonesia’s Exports and Imports

BALANCE OF BRUNEI DARUSSALAM - INDONESIA TRADE 2011-2018

(In BND Millions)

YearBrunei Exports to

IndonesiaBrunei Imports from Indonesia

TotalSurplus/Deficit

(+/-)

2011 1,068.5 90.7 1.159.2 (-) 977.8

2012 573.8 101.8 675.6 (-) 472.0

2013 672.6 191.9 863.5 (-) 479.7

2014 812.2 132.2 944.4 (-) 680.0

2015 140.8 121.4 262.2 (-) 19.4

2016 117.2 114.7 231.9 (-) 2.5

2017 67.8 100.4 168.2 (+) 32.6

2018 161.12 89.5 250.62 (-) 71.62

Notes: (-) deficit for IndonesiaSource: Brunei JPKE, data with Brunei Dollar (BND)

The decline in Indonesian exports to Brunei Darussalam is also in line with the decline in the value of Indonesian imports from Brunei Darussalam. In the table above, we can see Indonesia’s trade deficit in the period of 6 years from 2011 so that 2016. In the 2017 period, Indonesia experienced a surplus of 32.6 million BND. But it returned to the biggest deficit in

2018 after 2015.

b. Measuring Indonesia’s Trade with Brunei in Relation to the Export Value of Non-Oil and Gas (Commodities) in 2011-2017

Indonesia certainly has various advantages, especially in terms of fertile land, and a diverse climate. Naturally, many countries want to make bilateral cooperation with Indonesia, including Brunei. In addition, Indonesia is also the fourth

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country that has the highest exports to Brunei by 3.4% in 2017215 To support the productivity quality of Indonesia’s non-oil and gas export to Brunei, it is necessary to improve infrastructures such as roads, factories, airports, maximum ports and adequate, for the smooth international trade relations of the destination country. To see the development of trade between Indonesia and Brunei with regard to the value of Non-Oil and Gas Exports (Commodities) in 2011-2017, it is attached to the table below with a percentage of the Trade Balance table above:

Table 4.B.1.B Indonesian Trade with Brunei relating Non-Oil and Gas Export Value (commodity)

Year

Exported Commodities

Machinery and

transportation

equipment

Manufacturing

Product

Food & beverage

products

Other

in

million

BND

%

in

million

BND

%

in

million

BND

% in

million

BND

%

2011 $14.24 15.7% $33.29 36.7% $12.06 13.3% $31.11 34.3%

2012 $22.80 22.4% $17.20 16.9% $12.73 12.5% $49.07 48.2%

2013 $74.27 38.7% $21.49 11.2% $14.97 7.8% $81.17 42.3%

2014 $46.67 35.3% $23.80 18.1% $11.77 8.9% $49.84 37.7%

2015 $43.58 35.9% $47.89 41.1% $25.01 20.6% $2.91 2.4%

2016 $37.85 33% $45.77 39.9% $20.41 17.8% $10.67 9.3%

2017 $34.14 34% $29.02 28.9% $32.53 32.4% $4.72 4.7%

Average (%) 30.07% 27.54% 16.19% 25.56%

Source: The Observatory of Economic Complexity (OEC), the

Indonesian product that is exported to Brunei 216

 215 The Observatory of Economic Complexity: OEC: Indonesia and Brunei. Accessed from https://atlas.media.mit.edu/en/profile/country/brn/

216 The Observatory of Economic Complexity: OEC: Indonesia and Brunei. Accessed

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The measured export commodities are machinery and transportation equipment, manufacturing and food & beverage products. From the table above, we need to observe that the highest value of commodity exports to Brunei are commodity machinery and transportation equipment.

The export value of Indonesian snacks, food, and beverages from 2011-2017 has increased from year to year according to the value of Indonesian exports to Brunei. The food and beverage commodities are also interesting to improve, both from the government, and private. So it is expected that companies in Indonesia can improve the performance of food, beverage and snack production so that it can be exported to

Brunei.

c. Measurement of Brunei and Indonesia Trade relating to the Value of Oil and Gas Exports in 2011-2017

Brunei Darussalam is a small but very rich country. As much as 60% of Gross Domestic Product and more than 90% of the country’s exports rely on the oil and gas sector and those that are still in the development stage are from the agriculture, fisheries, forestry and services sectors. Unfortunately, countries such as Brunei Darussalam and several countries in Arab land whose economies are fixed with oil and gas production will get an economic downturn if world oil prices fall. So, the Brunei government seriously made steps to strive to avoid a continuing crisis called “Wawasan Kebangsaan Brunei 2035” (Brunei National Vision 2035)217 which aims for the country not to be fixated just on oil and gas, but also to diversify other products. To see the development of trade with Indonesia-Brunei associated with oil and gas export value of the Year 2011-2017 is attached

from https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/idn/brn/show/2016/  217 A.A.H. Hashim, Challenges ......, pg. 29-54.

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to this table with the percentage of trade balance above table:

Table 4.B.1.C Brunei and Indonesia’s Trade relates to the Value of Oil and Gas Exports

Year

Exported Commodities

Oil and Gas Chemicals Other

in million BND

%in million

BND%

in million BND

%

2011 $1,057.815 99% $6.73 0.63% $3.95 0.37%

2012 $556.586 97% $10.33 1.8% $6.89 1.2%

2013 $665.874 99% $3.36 0.5% $3.36 0.5%

2014 $779.712 96% $13.81 1.7% $18.68 2.3%

2015 $129.536 92% $8.45 6% $2.82 2%

2016 $106.652 91% $6.83 5.83% $3.72 3.17%

2017 $44.748 66% $14.31 21.1% $8.75 12.9%

Average (%) 91.43% 5.37% 3.21%

Source: The Observatory of Economic Complexity (OEC), the Bruneian product that is exported to Indonesia 218

The measured export commodities are crude oil and gas, chemicals in the form of methanol, acyclic alcohol, and other chemicals, and others in the form of scrap metal, wood, plastic, and some tools in very small amounts. From the table above, we need to observe that the highest value of commodity exports to Indonesia is oil and gas. We can also see the percentage in 2017 plummeting to 66% from 91% and Chemicals rising at 21.1%, which was previously only 5.83%, this does not mean Brunei is increasing the level of exports of Chemicals, but Brunei

218 The Observatory of Economic Complexity: OEC, Indonesia and Brunei, accessed from https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/idn/brn/show/2016/

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governments are holding back their oil and gas because the world oil prices are declining, then make products diversification,

tourism, agriculture, fisheries and so on as a solution.219

d. Term of Trade (TOT) between Indonesia-Brunei according to the Export and Import Price Index

Economic growth in the implementation of foreign trade between Indonesia and Brunei has fluctuated. In carrying out export-import as well, many considerations must be taken, such as travel expenses, customs, country economic decisions and so on. Below will be attached data on the calculation of the Term of Trade Indonesia according to Export and Import prices index

with Brunei Darussalam:

Table 4.B.1.D Term of Trade (TOT) between Indonesia-Brunei

Year Export Price Index (Bruneian TOT) Import Price Index (Indonesian TOT)

2011 107.3% 109.4%

2012 110.1% 111.3%

2013 120.6% 128.2%

2014 138.2% 137.5%

2015 121.3% 131.9%

2016 104.3% 124.7%

2017 103.3% 129.5%

Average 115.01% 124.64%

Source: Badan Pusat Statistik Indonesia (processed)

One indicator that can be used to determine Brunei and Indonesia’s import exports is by measuring the export price index and import price index, then becoming a TOT analysis

 219 Result of Interview with Indonesian Embassy, Economic Function Coordinator, Mr. Eko Himawan, At Wednesday 21 Of March 2018. See Appendix I, No. 1

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calculation. Simply stated, if the Term of Trade (TOT) is greater or the increase in the term of the trade (TOT) develops, then foreign trade becomes positive or better because, with certain export values, greater import values are obtained220. From the table above it can be seen that the export price index for Brunei to Indonesia continued to increase significantly from 2008 to 2014 and then declined from 2015 to 2017 due to declining oil prices. But here, because Brunei TOT is still above 100%, then, the term of trade is still good.

Figure 4.B.1.D. Term of Trade (TOT) between Indonesia-Brunei

Source: Badan Pusat Statistik Indonesia (processed)

While Indonesia’s import price index with Brunei tends to fluctuate. This indicates that Brunei’s import price index is not affected by petroleum prices and even tends to be superior to the export price index except in 2014. So, the effect of Indonesia’s trade to Brunei in Term of Trade is better than Brunei’s trade

value effect on Indonesia in Term of Trade.

 220 Apridar, Ekonomi Internasional: Sejarah....., pg. 129

0,00%

50,00%

100,00%

150,00%

2011 2012 2013 2014 2015 2016 2017

Brunei-Indonesia Term of Trade (TOT) according to the Export and Import Price

Index

Indeks Harga Ekspor Indeks Harga Impor

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2. Travel Expenses and Customs Expensesa. Travel Expenses (Connections)

In carrying out exports and imports, travel is the main way to deliver trade goods. The connection between countries is considered very crucial and important in terms of international trade. The connection can be from travel by land, sea, air and even online connections through E-Commerce using information technology that facilitates business activities.221 But the fact remains that 90% of the world’s international trade uses sea lanes as a connection in realizing exports and imports, with 10.7 trillion items involved in the connection in this world of transportation in 2017.222

Indonesia and Brunei also still rely on the sea in the international trade connections of each country. Indonesia itself is a country with the most islands in the world, which has approximately 17,506 islands spread over a vast ocean that reaches 5.8 million square kilometers, in a profitable position because it is located between two continents, i.e. Asia and Australia, and pinched 2 Oceans namely the Indian Ocean and the Pacific Ocean. So it is not surprising, that as much as 40% of international trade through Indonesian waters and sea,223 although it does not eliminate the fact that Indonesia is ranked 46th and still inferior to its neighboring countries,

 221 Setyaningsih Sri Utami, “Pengaruh Teknologi Informasi Dalam Perkembangan Bisnis”, Jurnal Akuntansi dan Sistem Teknologi Informasi, Vol. 8, No. 1, 2010, pg. 63

 222 United Nations Conference on Trade and Development, REVIEW OF MARITIME TRANSPORT 2018, (New York: United Nations Publications: 2018), pg. 5

 223 Ismah Rustam, Tantangan ALKI dalam Mewujudkan Cita‐cita Indonesia sebagai Poros Maritim Dunia, Indonesian Perspective, Vol 1 No. 1 (January-June 2016): 1-21, pg. 2 Also read: Kementerian Perhubungan Republik Indonesia, Empat Puluh Persen Jalur Perdagangan Dunia Melewati Indonesia,, http://www.dephub.go.id/post/read/empat-puluh-persen-jalur-perrading-dunia-melewati-indonesia accessed on April 7, 2019, 09:58 am

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Malaysia is ranked 41st and Singapore is ranked 2nd in the Global Competitiveness Index and Logistic Performance Index.224 Brunei Darussalam, even though it is a small country in ASEAN, in fact, this country is across the South China Sea which is very profitable in international trade, accompanied by the fact that this country has a 90% dependence on oil and gas exports which makes it the biggest crude oil exporter Southeast Asia territorially.225 The South China Sea is a strategic object of Brunei because the coastline Brunei has is 161 km (100 mi), although Brunei is ranked 80 in the Index Performance Logistics.226 These two countries in essence still rely heavily on the economy from sea connections from time to time with the fact that they are on a sea silk route that stretches from Europe, Arabia, China, India to the South China Sea.227

The challenges of these two countries are indeed in terms of connectivity. The author had interviewed with the Coordinator of Economic Functions at the KBRI Bandar Seri Begawan, Mr. Eko Humawan, that he affirmed that228. He said, connectivity by land, or in another word, by trading trucks, is very difficult to be realized because it has to pass through Malaysia to deal with

 224 Kementerian Perdagangan Republik Indonesia, Sistem Transportasi dalam Mendukung Efisiensi Distribusi, 2017. pg. 6, accessed on 7 April 2019, 10:58 http://www.kemendag.go.id/files/pdf/2017/02/22/rapat-kerja-kementerian-perdagangan-2017-

id21-1487736398.pdf, Also Read: The World Bank, Country Score Card: Indonesia 2018, https://lpi.worldbank.org/international/scorecard/line/2/C/IDN/2018  225 World Energy Council, Oil in Brunei Darussalam, 2013 https://www.worldenergy.

org/data/resources/country/brunei-darussalam/oil/ accessed on April 7, 2019, 10:28 am  226 The World Bank, Country Score Card: Brunei 2018, https://lpi.worldbank.org/

international/scorecard/line/2/C/BRN/2018  227 Nani Hanifah, Mengkaji Pola Perdagangan Jalur Sutra di Era Globalisasi Mengkaji

Pola Perdagangan Jalur Sutra di Era Globalisasi, Jurnal Studi Islam dan Muamalah At-Tahdzib Vol 4 No 2, 2016, pg. 2

 228 Result of Interview with Indonesian Embassy, Economic Function Coordinator, Mr. Eko Himawan, At Wednesday 21 Of Maret 2018. See Appendix I, No. 1

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immigration and so on. Trading by air, so far it is still in terms of trade in passenger transportation, not goods. For maritime affairs, Brunei might benefit because Brunei’s exports of crude oil are more than Brunei’s imports for any product from Indonesia. This also relates to how competition for Indonesian products with neighboring products from specifications that are almost the same. In this case, the Indonesian Embassy in Brunei Darussalam has conducted market research in the Brunei Darussalam supermarket, from the results of the research found that 3,800 food/beverage products that are circulating in Brunei’s market /supermarkets were produced by Indonesia (around 40%). Most Indonesian products are exported through third-party, such as Singapore and Malaysia.229 However, Indonesia is the second closest country after Malaysia as the Brunei crossing, with far of 598 km (North Kalimantan), But if the destination is Tanjung Priok, Jakarta Indonesia by sea route, then it becomes 2,003.864 km.230

b. Customs and Excise ExpensesAs previously discussed, Customs are literally general

taxes, namely levies imposed by the government on exported or imported goods, furthermore, excise is a tax or duty imposed on imported goods and consumer goods such as cigarettes, alcohol and so on. But, in essence, there are a number of regulations that have been regulated by the World Trade Organizer under the United Nations and in charge of the World Customs Organization, international intergovernmental organizations in

 229 Embassy of the Republic of Indonesia, Laporan Analisa KBRI Bandar Seri Begawan, Bidang Ekonomi Tahun 2017, 2018, Bandar Seri Begawan: LKJ-KBRI, pg. 10

 230 Through the official calculation of distance on the website:http://ports.com/sea-route/port-of-muara,brunei/port-of-tanjung-priok,indonesia/#/?a=0&b=4141&c=Port%20of%20Muara,%20Brunei&d=Port%20of%20Tanjung%20Priok%20,%20Indonesia accessed on Wednesday, 10 April 2019, 14:07

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more than 170 countries in the simplification of international customs and procedures.231 WCO itself was established on January 26, 1952, in Brussels, Belgium.

Every country’s customs duty is only a doorman, not a determinant of tariffs, so said the Export Logistics Practitioner, Mr. Budi Santoso, during an interview.232 All tariffs have been issued according to HS Code, which is an international standard for naming and numbering systems used to classify trade products and derivatives managed by the World Customs Organization. From this HS Code, books are created as a regulation of 98% of countries in the world, where the customs order law is generally the same, except if there is the specialization of one or two items seen from government policy. In Indonesia, customs tariffs and taxes are arranged in in the BTKI book, written by the Indonesian Ministry of Finance in charge of the Directorate General of Customs and Excise,233 while Brunei Darussalam prepares it in BDTTC, written by the Ministry of Finance and Economy Brunei Darussalam in charge of Royal Customs and Excise Department. These two books contain classifications of goods, determination of types, import tariffs which are related to HS Code and ASEAN Harmonized Tariff Nomenclature (AHTN). Then in Islam, the taxes occurred will be handed over to the baitul mal to distribute to other person who wanted the helping.234

 231 Carsten Weerth, “The Structure, and Function of the World Customs Organization”, Global Trade and Customs Journal, Volume 4, Issue 5 © 2009 Kluwer Law International, pg. 131

 232 Result of Interview with Import Export Logistics Practitioner (Owner PT Multi Prima Mandiri), Budi Santoso, At Tuesday 12 Of February 2019. See Appendix I, No. 4

 233 Result of Interview with Director of the Customs and Excise Supervision and Service Office (KPPBC) Madiun, Syaifuddin, At Thursday, 10 Of January 2019. See Appendix I, No. 2

 234 Andi Triyawan et al., “Tax Exemption Goods Trade On ASEAN Free Trade Area

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In term of import duties, Brunei and Indonesia tend to be the same. The determination that has been written in the customs books of each country usually uses Ad Valorem, which is a tax based on the value of a transaction or property, not according to the scale, size or unit, so then the adversary of Ad Valorem is a Specific Tax, which means all goods excise are certain and specific for some item only, even though the item can actually enter the classification written in the Ad Valorem determination, but it is determined by each country policy.235 This provision is written in HS Code, where the official Ad Valorem is in the form of a percentage, for example, if the imported goods are coffee, the excise duty is 20% of the price of the coffee. If the country decides to specialize in a specific item, then it will measure it in units, sizes or scales depending on government policy, for example, Brunei is importing tobacco, then the calculation Specific Tax is by the amount of weight or quantity such as $ 220/ton. On average, these two countries’ Ad Valorem on import duties is the same.

In the export duties case, these 2 countries have a difference. Indonesia has export duties on some of its goods, like mining goods, crude oil, and Crude Palm Oil.236 Brunei itself, since 1973, has not imposed export duties on any goods, with the aim of promoting local goods from Brunei company.237

(AFTA) According To Islamic Economics”, Islamic Economics Journal, Vol. 4, No. 1, 2018. Pg g8.

 235 Michael Keen, “The Balance between Specific and Ad Valorem Taxation”, Fiscal Studies, (1998) vol. 19, no. 1, pg. 02

 236 Result of Interview with Export-Import Logistics Practitioners (Owner of PT Multi Prima Mandiri), Budi Santoso At Tuesday 12 Of February 2019. See Appendix I, No. 4

 237 Ministry Finance and Economy Brunei Darussalam, Customs Import Duty (Custom Taxes), Brunei Darussalam National Single Window http://www.bdnsw.gov.bn/Pages/CustomsImportDuty.aspx accessed on 7 April 2019, 13:19

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C. Discussion1. Bilateral Economy according to Islam, case studies on Brunei and

IndonesiaTo make a country in progress, sometimes one country

alone cannot afford to handle its shortcomings in the economy. Bilateral economics is intended as a solution to make international trade effective. With bilateral trade, the two countries that carry out export-import agreements, customs and connections should be more open to complement each other. But in fact, sometimes a country looks more profitable than other countries that make it a bilateral partner.

Though the essence, taking advantage in a country is a natural thing. In this case, the essence of taking advantage is an agreement between the two parties. Rasulullah Sallallahu ‘Alaihi Wasallam said, the hadith from Abdullah Zubair Radhi Allahu

‘anhuma, he told:

وكان الزبـيـر اشتـرى الغابة بسبعين ومائة ألف، فـباعها عبد الله بألف ألف وستمائة ألف

Meaning:

Zubair had bought forest land for 170,000, then the land was sold by his

son, Abdullah bin Zubair for 1,600,000 (Narrated by Bukhari 3129).238

In Islam, the aim of bilateral trade, or in general, international trade, is not only to seek profits but also to be useful for other countries. The real purpose of international trade in Islam is to create benefit among human beings between countries and become a form of help. In fact, since a long time ago, Rasulullah had

 238 Imam Abu Abdullah Muhammad asy-Syafi’I, Shahih Bukhari, translated by Dr. Muhammad Muhsin Khan, Vol. 4, (Riyadh: Darussalam, 1997), pg. 221

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determined import duties, excise, and transportation calculations to calculate fair regional or international trade and mutual respect for each other. In order to achieve this benefit for 2 or more of these countries, Dr. Jaribah bin Ahmad Al Haritsi author of the book Economic Jurisprudence Umar bin Al Khattab said that in order for international economic relations to realize the greatest possible benefits for Muslims and keep them away from the harm that will

occur, the relationship must fulfill the following code of ethics:239

a. First, halal goods and services in the place of trade; all that is traded by an exporter and purchased by the importer must be halal. Etymologically, halal means things that are permissible and can be done because they are free or not bound by the provisions that prohibit them.240 Transactions between 2 countries must change according to Islamic law because in Islam it is not permissible to bring in goods or services that are forbidden in a shar’i manner. Nevertheless, exports and imports also have courtesy and manner like individual buying and selling. In exports, certain commodities can be prohibited by the Islamic government, or specifically the Caliph, if according to ijtihad it can provide a danger to the country. For example, exports of weapons or materials that can strengthen the weapons of foreign countries, such as uranium, etc. Because commodities like this can strengthen the strength of foreign countries to fight against the Islamic country. The Caliph may also ban the export of commodities certain which are limited in number and very much needed in the country, so that domestic needs can be fulfilled, for example, oil and gas which may be rare in a few years. According to Yusuf Qarḍawi, halal is something with

 239 Atep Hendang Waluya, “Perdagangan Internasional Dalam Islam..., Pg. 56 240 Yusuf Qardhawi, Halal dan Haram dalam Islam, (Surakarta: Era Intermedia,

2007), pg. 5

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which a dangerous rope is broken, and Allah allows something to be done.241 In Brunei itself, there are regulations for halal food to be consumed by many people, such as the Halal Meat Act (1999) which has been regulated when importing goods from abroad.242

b. Second, international economic relations can realize the benefit of the Muslims; this is related in macro or micro terms. In macro terms, these two countries can help their Islamic community in their activities, especially in economic terms. Micro, of course, individuals can meet their needs internationally. Thus, with this, the halting and permitted (halal) of trade exchanges with non-Muslims does not mean opening up opportunities for economic relations without ensuring the existence of a strong benefit for the Muslims. This benefit sometimes provides an abundant opportunity for export production from an Islamic country or imports things that are needed by the Muslims, sometimes also for the opportunity to broadcast Islamic law, and others.

c. Third, making Islamic territories a priority; this is intended so that fellow Islamic regions can realize economic independence for the Muslims and reduce little by little the Qibla or setting the direction to the economic system of non-Muslims. Brunei and Indonesia are well still implementing this because both are under the organization of the Islamic Cooperation Organization (OIC)

d. Fourth, the regulation of the entry and settlement of non-Muslims on Islamic country; this is more about how systematic visitors

 241 Yusuf Qardhawi, Halal dan Haram..., pg. 15 242 AM Khalid, M. Haji Masr, N. Muhammad and WL Pang, “Brunei Darussalam:

Halal Meat and Meat Products Processing”, in Gross, Jeremy and PS Intal, Jr. (eds.), Reducing Unnecessary Regulatory Burdens in ASEAN: Country Studies, National Library of Indonesia Cataloguing (Jakarta: ERIA/ Economic Research Institute for ASEAN and East Asia, 2018), Pg. 112.

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or permanent non-Muslim residents are in their economic interactions with Islam, and also, how are these non-Muslims regulated in the government so as not to distance the economic system in government from the reach of Islam.

e. Fifth, trade agreements; for now, the existence of various bilateral agreements, regional economic blocs and the World Trade Organization (WTO) aims to increase trade between countries in the world that have an impact on economic growth and ultimately improve the welfare of the country’s people. Accumulating trade agreements between countries is an unavoidable thing to motivate and regulate trade relations in order to realize the benefit of the parties that make an agreement. According to Siddiqi243, trade agreements carried out by the Islamic government with countries Muslim or non-Muslim Should fulfill the following principles:1) Maintain and support the economic interests of the people

themselves by prioritizing the fulfillment of needs,2) Ensuring fairness and equity of economic transactions in

accordance with sharia rules, and3) Strengthen the people and serve the purpose of the Islamic

community to work together to achieve prosperity at the global level.

f. Sixth, the Islamic Country should have the authority to regulate and supervise foreign economic relations; this can be in terms of customs, port authorities and so on. Abu Yusuf argued that a head of country should have a place of supervision on the roads that penetrate to non-Muslim countries so that the merchants who cross it can be monitored. Whoever carries a weapon can be seized from him, and they must return the servants with him.

 243 Muhammad Nejatullah Siddiqi. Principles of International Economic Relations in Islam. International Economic Relations from Islamic Perspectives. (Jeddah: Islamic Research and Training Institute, 1992), pg. 9

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In Usyr’s imposition, the number and procedure are very clear in the Al-Kharaj book

g. Seventh, Affairs of economic activities must be led by a Muslim, if there are non-Muslims who contribute to them. This is because international trade involves the country and also foreign nationals. The Islamic country, in this case, the Caliph is responsible for controlling, managing and regulating it in accordance with Sharia provisions. Leaving it internationally without country control and intervention is the same as limiting the state’s authority to regulate its people, whereas Abdullah bin Umar reported: The Messenger of Allah, peace, and blessings be upon him, said: “ An Imam is a shepherd and he is responsible for those in his care (Muttafq ‘Alaih).” It is very difficult if this economic activity is led by people who are not Muslims in an Islamic country, but if they want to fellowship in the success of a country’s economy, it is not a problem because they want to deal together with the masses. For example, Brunei does not question England in handling oil, as long as it does not inflict a financial loss for Brunei, it is okay.

As 2 countries that have many similarities between race, ethnicity, religion and so on, the needs of these two countries are quite the same. It is not strange if they carry out bilateral economic cooperation between the two. The two countries also share international organizations such as the United Nations (UN), the World Trade Organization (WTO), the Organization of Islamic Cooperation (OIC) and also regional organizations such as the Association of Southeast Asian Nations (ASEAN), The China-Free Trade Area (ACFTA) and so on. In looking at this bilateral trade in Islam, we need to examine the export-import table that had been written above:

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By looking at table 4.B.1.A above shows that Indonesia has been mostly deficit in carrying out bilateral trade cooperation with Brunei Darussalam, except in 2017. In this case, the facts found in the table. 4.B.1.C, that the export of Brunei commodities to Indonesia is 91.4%. This is because Indonesia needs more oil for its country from various countries because of Indonesia’s awareness of its inadequate oil and gas reserves.244 To reduce the deficit, Indonesia itself continues to export to Brunei with commodities that prioritize transportation, food, and manufacturing, with food products continuously increasing in the table. 4.B.1.D according to the needs of Brunei. This is also in accordance with the facts and research that Indonesian food products in Brunei are at 40% of all products in supermarkets.245 This means that Indonesia and Brunei complement each other in this bilateral trade.

This is also in accordance with Ibn Khaldun’s rules regarding trade between countries. Efforts to fulfill basic needs in a country require cooperation with other countries, the aim is to create benefit among mankind and one form of help. He said that goods would be more valuable with country trades because people’s satisfaction, merchant profits, and country welfare would all increase (gains from trade).246 According to him also, this international division of labor is not based on natural resources from these countries but is based on the skills of the local population. Indonesia with its shrewdness in producing some transportation, food products and so

 244 Ana Fitriyatus Sa’adah, Akhmad Fauzi, Bambang Juanda, “Peramalan Penyediaan dan Konsumsi Bahan Bakar Minyak Indonesia dengan Model Sistem Dinamika”, Jurnal Ekonomi dan Pembangunan Indonesia, Vol. 17 No. 2 January 2017, pg. 119

 245 Result of Interview with Indonesian Embassy, Economic Function Coordinator, Mr. Eko Himawan, At Wednesday 21 Of Maret 2018. See Appendix I, No. 1

Bisa dilihat juga di: Embassy of the Republic of Indonesia, Laporan Analisa KBRI Bandar Seri Begawan, Bidang Ekonomi Tahun 2017. Bandar Seri Begawan: LKJ-KBRI, 2018 See Appendix II, A.

 246 Ibnu Khaldun. Mukaddimah...., pg. 715.

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on has made Brunei, which does not have the expertise to do so, has the willingness to import these goods from Indonesia. Brunei itself, which still has abundant crude oil, is capable of making Indonesia, which also needs more crude oil for its country, interested in importing crude oil from Brunei Darussalam. The presence of ASEAN is also important in handling economic policies between these two countries along with 8 other ASEAN countries.247 So, economically, Islam, Brunei-Indonesia exports and imports have been considered fair and complementary.

Unfortunately, in terms of production plan may have to be improved. Indonesia was once a supplier of oil and gas even though it eventually declined and made Indonesia import oil from other countries. On the other hand, as an agricultural and maritime country, with a land area of 1,922,570 km2 and its waters area of 3,257,483km2 it should make agriculture and maritime areas a priority and not inferior to neighboring countries like Thailand and Malaysia. Food production and specialization in Indonesian industries must also spawn more advantages so that countries that engage in bilateral cooperation are increasingly interested in other Indonesian products. Brunei Darussalam also, as a country that exports 90% of its commodities in the form of crude oil, do not be too complacent with the comfort of the fact that the Brunei Trade Balance is in the table. 4.B.1.D which is still a surplus but tends to fall until it finally becomes a climax when in 2017. Along with that, Sultan of Brunei ordered to limit oil exports and make Brunei’s trade a little deficit to several countries including Indonesia. So, regarding the matter of goods produced and exported, then trading it to other people, in this case other countries, there is the hadith of

 247 Rinaldy Achmad Roberth Fathoni, Mochammad Al Musadieq, Supriono, “Pengaruh Ekspor Intra – Asean dan FDI Intra – Asean Terhadap Pertumbuhan Ekonomi Negara Asean (Studi pada Negara Indonesia, Malaysia, Singapura, Filipina, dan Thailand Tahun 2006-2015)”, Jurnal Administrasi Bisnis (JAB)|Vol. 45 No.1 April 2017|, pg. 51

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the Prophet Muhammad who said,248

وعن جابر قال: قال رسول الله صلى الله عليه وسلم| ما من مسلم يغرس غرسا أو يزرع زرعافتأكل منه دابة أو طير أو إنسان إلا كان له صدقة

Meaning: “Rasulullah SAW said, “When a Muslim plants a tree, whatever is eaten from it is charity from him and whatever is stolen is charity and whatever is subtracted from it is charity”(HR. Bukhari, Muslim, Tirmidhi).

Shaykh Salim bin Ied Al-Hilali in the book “Bahjatun Nadhirin Syarhu Riyadhis Shalihin”249 write down some lessons that can be taken from this hadith, one of which is the existence of an order to try to benefit the creatures of Allah Almighty and also facilitate and fulfill all their needs. He said that hadith thus instructed the Muslims to plant trees and plants, because this action had a lot of goodness, in it contained the problems of religion and the world. As for the problem of the world, that is, when plants and trees grow, the benefit is not only to those who plant, but also to the people around them, and in this case the country around them. As for the problem of religion, that is if the plants and trees are eaten by animals or other, even if only a grain, then it will be alms for him. In macro terms, the hadith can be a reference for all countries to establish cooperation between countries and nations on this earth and its policies in producing goods and exporting them to that country.250

 248 Imam Abu Abdullah Muhammad asy-Syafi’i, Shahih Bukhari, diterjemahkan oleh Dr. Muhammad Muhsin Khan, Vol 3 (Riyadh: Darussalam, 1997), pg. 525

 249 Syaikh Salim bin Ied Al-Hilali, Syarah Riyadhush Shalihin, diterjemahkan oleh M. Abdul Ghoffar, Jilid 3 (Jakarta: Pustaka Imam Asy-Syafi’i, 2005), pg. 134

 250 Murasa Sarkaniputra, Ruqyah Syar’iyyah: Teori, Model, dan Sistem Ekonomi, (Cirebon: Al-Ishlah Press, 2009), pg. 109 dan 159.

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From this hadith, we can analogize it with Indonesia and Brunei today. Indonesia must think about how to continue to produce goods that are of good quality and useful to other countries and try not to be a deficit, and if it is indeed a deficit, it is also for the good of Indonesia to fulfill its country oil needs. In addition to Indonesia having to keep producing better in order to raise the balance sheet the trade. Brunei also must continue to think about product diversification which is not only driven by crude oil production. With the Brunei government program called “ Wawasan Kebangsaan Brunei 2035” (Brunei National Vision 2035)251 making Brunei more passionate in exploring the country’s potential in agriculture, tourism and so on. This is the international trade adopted by Islam, which does not tend to be individualism and selfism like the capitalists.252

In this aspect of exports and imports, there lies in it the expense of travel. The distance of travel increases the cost of international goods and services exchange transactions. The farther apart from one country with another, the greater the transportation costs in the trade between the two. With the transportation costs, the profits received by a country from international trade are getting smaller.253 According to an interview with the Coordinator of Economic Functions at the Indonesian Embassy in Bandar Seri Begawan, Mr. Eko Humawan254 that travel connectivity between Brunei and Indonesia is a challenge on its own, both from the sea and land and air, especially for the sea which must stop at Singapore or Malaysia ports, which will add load distance. This might be

 251 A.A.H Hashim, Challenges in..., pg. 29-54. 252 Atep Hendang, Perdagangan Internasional Dalam Islam..., pg. 55-56 253 Paul Krugman, “Scale Economies, Product Differentiation, and the Pattern of.

Trade”, American Economic Review, 1980, vol. 70, issue 5, no. 950, pg. 59 254 Result of Interview with Indonesian Embassy, Economic Function Coordinator,

Mr. Eko Himawan, At Wednesday 21 Of Maret 2018. See Appendix I, No. 1.

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a feasible problem to solve so that international trade between Indonesia and Brunei will become more smooth.

Al Ghazali himself wrote in his book255 about transportation. He wrote, “Furthermore, these practices occur in various cities and countries ...” then continued his statement about how transportation will be useful in delivering goods from one country to another. He also explained how the creators of freight services will get benefit in this regard. In fact, today, we have ports and shipping companies with many alternatives and various types. The World Trade Organization also does not intervene too much in giving policies to exporters and importers, and broadly countries feel free to trade. So this is where the art of exporters and importers in determining the right and profitable services for them and countries must support their communities so that the country’s economy is more smooth and good. Mr. Eko Humawan also said that the Embassy of the Republic of Indonesia will continue to promote Indonesian products in Brunei with a number of exhibitions each year. Just how to maximize the journey of Brunei and Indonesia so that they are not too burdened by stopping or transit to neighboring countries first rather than directly to Brunei or vice versa, which will increase the logistical costs that make export prices more expensive and make judgments for those countries. Therefore, these two countries, especially Indonesia, must get a truly strong ship so that they can directly send their goods to Brunei without transiting anywhere in the country and making Indonesian ports wider to accommodate many ships. This is where Ibn Khaldun’s theory of thinking about the development of a country is seen from the development of individual intellectuality and infrastructure to be maximized by the two countries to create closeness between two countries, as Al-Ghazali thought in the industrialization of vehicles can affect a

 255 Abu Hamid al-Ghazali, Ihya’ Ulumuddin...., Pg. 227

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country’s economic performance towards other countries.

Customs is also one of the burdens in trade between the two countries. Determination Ushr as excise by Abu Yusuf became the main reference for Islam in determining the customs of a country, and added some more conditions by Abu Ubayd in the specialization of staple foods. The tradition of collecting excise is actually already existed from before pre-Islamic times which is called, then it was put effect in again at the time of the Caliph Umar ibn Khattab with some special condition and provision.256 So, it can be ascertained that its nature follows the leader of a country or on the agreement of various countries, where communities and countries agree and feel fair in the determination of these customs.257

Indonesia and Brunei actually have an agreement that tends to be the same as using HS Code as a reference for conducting customs and excise law in Ad Valorem rates, which is the same as ‘ Ushr who assesses the goods of goods from the value of a transaction or property, not according to scales, size, or unit. HS Code itself contains naming and numbering used to classify trade products and derivatives managed by the World Customs Organization, used by 98% of countries in the world. The fundamental difference from HS Code with ‘Usyr is that the law of ‘Usyr is determined by the owner of the goods, not the origin of goods such as kafir harbi, Muslim or kafir dzimmi, but things like this today can be completed with the existence of Special Tax in each country, according to policy each country’s government. ‘Usyr Customs is only one type of customs in the world. The other types of import duties such as Anti-Dumping Import Duty, Revitalization Import Duty, Import Duty are types of

 256 Malik bin Anas, Al-Muwatho, (Cet I, Abu Dhabi: Muassasah Zayid bin Sulthon, 2004), pg. 400/2.

257 Moch. Yusuf Bachtiar, “Bea Masuk Impor Tinjauan Hukum Islam Dan UU Nomor 17 Tahun 2006 Tentang Perubahan Atas UU Nomor 10 Tahun 1995 Tentang Kepabeanan”, Jurisdictic | Jurnal Hukum Dan Syariah, Vol 5, No 2 (2014), pg. 211.

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import duties that develop in accordance with the times and world trade. In this case, it means, the basis of all types of customs is import duty which in classical fiqh books is called ‘Usyr, so the law is the same as customs in BTKI and BDTTC on the basis of HS Code written by WCO under the auspices of the WTO.

In the end, everything returned to the method ushul fiqh that ‘the basic principle of everything is permissible.’ Then, something has been given a legal basis of punishment according to sharia, laws, and regulations, then something is permitted or prohibited. So, in economics, we are actually free in doing it, with art and good and right ways, provided we have run everything according to sharia and according to maslahah between religious people.258 With this freedom, Brunei and Indonesia with each of their policies must be able to create better opportunities economic, so they can become partners economy bilateral which is equally beneficial specifically for countries their respective, and in general for all Muslims. In closing, there is a hadith narrated by ‘Aisha, that the Messenger of Allah Sallahu ‘Alaihi Wasallam said: 259

عن عائشة وعن ثابت عن أنس أن النبي صلى الله عليه وسلم مر بقوم يـلقحون فـقال لو لم تـفعلوا لصلح قال فخرج شيصا فمر بهم فـقال ما لنخلكم قالوا قـلت

كذا وكذا قال أنـتم أعلم بأمر دنـياكمMeaning

Anas reported that Allah’s Messenger (may peace be upon him) happened to pass by the people who had been busy in grafting the trees. Thereupon he

 258 Misbahul Munir, Ajaran-ajaran ekonomi Rasulullah: Kajian Hadis Nabi dalam Perspektif Ekonomi, (Malang: UIN-Malang Press, 2007) pg. 46

 259 Imam Abu al-Ḥusayn ‘Asākir ad-Dīn Muslim ibn al-Ḥajjāj, Shahih Muslim, translated by Nasiruddin Al-Khattab, (Riyadh: Darussalam, 2007), No. 4358.

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said: If you were not to do it, it might be good for you. (So they abandoned this practice) and there was a decline in the yield. He (the Holy Prophet) happened to pass by them (and said): What has gone wrong with your trees? They said: You said so and so. Thereupon he said: You have better knowledge (of a technical skill) in the affairs of the world.

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CHAPTER V

CLOSING

A. Conclusion1. Indonesia and Brunei have experienced bilateral economic

relations historically since hundreds of years, and diplomatically and bilaterally on January 1, 1984. Bilateral economic relations are also greatly facilitated by the embassies of each country that can be delivered directly to the governments of both countries with reports. The transportation regulation between the two countries may need to be addressed by sea and land so that trade connections between the two can achieve even better profits between the two countries. The customs of the two countries in managing export-import are both in accordance with international agreements through the HS Code under the guidance of World Customs Organization, so there are no significant problems in customs and excise when bilateral relations occur between the two countries. From the results of the analysis above, we find that according to the trade balance, Indonesia is always more deficit compared to Brunei Darussalam, even though it has experienced a surplus in 2017 ($32.6 million BND). The next table explains that Indonesia’s surplus in 2017 is due to the total Indonesian exports of vehicle commodities, manufacturing, and food, where these 3 products are more than Brunei’s exports of crude oil (Export: Brunei - $ 67.8 Million BND & Indonesia - $100.4 Million BDN) which was detained by the government so that not too much was issued by the Brunei government in a product diversification statement “ Wawasan Kebangsaan Brunei 2035” that year, not because of the increase in Indonesian export commodities that year (Indonesian Export: 2016 - $114.7 Million BND & 2017 - $100.4 Million BND). From the export and import price index values, it is indicated that the export price index continued to increase significantly from 2011 to 2014 and then declined from

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2015 to 2017 due to the decline in oil prices. While Indonesia’s import price index with Brunei tends to fluctuate, but higher than the export price index (Total Average: Indonesia – 124.64% & Brunei 115.01%). So, the effect of the value of Indonesian trade in TOT to Brunei is better than the effect of the trade value otherwise.

2. The purpose of creating bilateral economic relations, especially bilateral trade in Islam, is, in essence, to create the benefit of the people so that they can help each other, not only seek profits. Indonesia and Brunei, in this case, are correct, because Brunei and Indonesia are on a macro level to add to what is lacking in their respective countries, Indonesia imports crude oil from Brunei to meet its people’s oil consumption, when Brunei is not a country of food production, transportation and manufacturing equipment imports these items from Indonesia. However, according to the hadith of the Prophet with its qiyas related to production and export that are useful, it is hoped, the two countries are able to produce more active in order to explore the potential of better between their respective countries so that more beneficial for the community of Islam and the Islamic country itself. Regarding transportation and connections, with the presence of many shipping, freight and cooperation services in L / C, it is ensured that today there are many parties as third parties between exporters and that both in bilateral Islamic trade relations and in accordance with Al-Ghazali’s statement in the Agreement Ijarah in renting transportation, but due to shipping constraints and transportation routes where both countries have to transit to neighbouring countries, this is where the intellectuals of both countries are useful, as stated by Ibnu Khaldun’s theory about the development of a country can be seen from the development of individual intellectuality and infrastructure really maximized by the two countries to create closeness between the two countries, as Al-Ghazali thought in industrialization of vehicles can affect the performance of a country’s economy towards other countries. In

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customs, Indonesia and Brunei actually have agreements that tend to be the same as using HS Code as a reference for conducting customs and excise law in the Ad Valorem tariff, which is the little bit same as ‘ Ushr ordered by Caliph Umar bin Khattab which assesses the goods of an item from the value of a transaction or property, not according to the scale, size, or unit.

B. Suggestion1. Indonesia and Brunei are expected to be better in managing

bilateral trade between countries, especially exports-imports and transportation between countries so as not only to provide more profits but also to prosper and help their communities by making a chance in trading internationally, especially for Muslims.

2. With this thesis, it is expected to encourage the governments of the two countries in formulating a more effective implementation system by looking at evaluations from previous years in order to eliminate tyranny in this bilateral trade and to provide community welfare for God bless.

3. Future research is expected to fill the gaps related to the bilateral trade. Next research is expected to be able to carry out a more absolute and critical description of each economic sector, such as the exchange rates of the two countries, the development of the value of the US Dollar exchange rate, as well as consideration of both the gross domestic product and national products as well as the two countries’ interest rates.

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APPENDIX I

INTERVIEW RESEARCH INSTRUMENTS

1. KOORDINATOR FUNGSI EKONOMI KEDUTAAN BESAR

REPUBLIK INDONESIA, BANDAR SERI BEGAWAN

Nama Narasumber : Eko Himawan

Tanggal Wawancara : Rabu, 21 Maret 2018

Jam : 14.30-15.30 WIB

Tempat Wawancara : KEDUTAAN BESAR REPUBLIK INDONESIA, BANDAR SERI BEGAWAN

Topik : Hubungan Bilateral antara Brunei dan Indonesia

Pertanyaan

A. Gambaran Umum1. Apa kontribusi KBRI Brunei Darussalam dalam berjalannya Ekspor

Impor yang terjadi antara Brunei dan Indonesia?2. Bagaimana perkembangan Ekspor dan Impor Brunei yang terjadi

saat ini?

B. Pengontrol Jalannya KBRI Brunei1. Dalam menghadapi resiko terjadinya pelemahan ekonomi antara 2

negara ini, apa reaksi KBRI dalam menangani situasi ini?2. Apa saja kendala yang dihadapi KBRI dalam menjembatani

kegiatan Ekonomi Bilateral antara 2 negara ini?3. Bagaimana cara mengatasinya?4. Apa rencana kedepan KBRI dalam mengharmoniskan hubungan

dua negara ini?

157

TRANSKIP REKAMAN WAWANCARASaya :Ini, eeh, apa kontribusi atau apa ini, KBRI terhadap

Indonesia dan Brunei, terutama terkait Ekonomi Internasional seperti ekspor impor dan sebagainya?

Narasumber : Kontribusi?Saya : Ya, maksudnya apa yang dilakukan KBRI?Narasumber : Yang dilakukan KBRI, sebenarnya bahannya ada. Jadi apa

yang kita lakukan sejak tahun, katakanlah, sudah rutin yah. Tapi intinya, untuk meningkatkan itu (ekspor-impor), kita mengadakan promosi.

Saya : Promosi? Jadi KBRI itu mempromosi. Mempromosi apa pak?

Narasumber : Produk. Produk apa saja.Say a: Produk apa saja yang ada hubungannya dengan Indonesia

dan ini nya ya (Brunei). Seperti?Narasumber : Jadi. Ada yang kita memang KBRI ikut sendiri, berarti

memang kita biayai semua. Ada juga yang kita fasilitasi teman-teman pengusaha yang ikut pameran ke Brunei.

Saya : Jadi kalau misalkan ikut sendiri, itu artinya biayanya entah dari pemerintah Indonesia disana?

Narasumber : Enggak, KBRI kan ada anggaranya. Setiap tahun itu kan, sebagaimana juga kementerian itu kan, dianggarkan. Nah, kalau anggaran KBRI, itu kan dibawah KEMLU (Kementerian Luar Negeri). Kemlu menetapkan, kita mengajukan, setahun sebelumnya kita ajukan untuk kegiatan ini ini, anggarannya sekian. Nanti ke pemerintah pusatlah yang menentukan. Kemlu menentukan berdasarkan anggaran yang dialokasikan oleh/melalui Kementerian Keuangan. Itu juga dibagi lagi, ke perwakilan dapat berapa, tidak rata, jadi nanti dilihat tahapnya dimana,. Jadi masing-masing berdasarkan tahap-tahap anggaran tahun sebelumnya.

Saya : Terus, eeh, Ekspor Impor Brunei bagaimana pak, berama

158

Indonesia?Narasumber: Ekspor Impor Indonesia, kita masih... (mengecek komputer)

eeh, kita selalu defisit.Saya : Defisit. He eh.Narasumber: Simply, karena memang kita impor minyaknya besar

daripada Impor Brunei. Cukup besarSaya L Jadi, defisit ke Indonesianya.Narasumber: he eh, itu kalau dilihat dari Statistik Brunei, nanti kalau

dilihat dari Statistik Indonesia di Jakarta, itu lain lagi.Saya : Oh jadi ini data yang dari KBRInya?Narasumber: Ini data dari JPKE, statistiknya Brunei,Say a: Jadi, tulis saja “Indonesia-Brunei minyak” gitu ya? Eh, cari

materi Indonesia begitu (di JPKE)?Narasumber: Enggak, dia, gak bisa (cari di Internet), kita harus minta.

Karena kita agak kecil sih, kecuali yang besar besar itu baru dapat, tapi kalau kayak Indonesia okelah kita mungkin untuk, ehem, apa, aah, ekspor Brunei bersama, tidak termasuk dalam 10 besarnya Brunei. Jadi kalau khusus untuk mengejar data ekspor impor Brunei, mereka akan kasih datanya, dari JPKE.

Saya : Oh, jadi ekspor besarnya Brunei itu, tidak termasuk Indonesia, tapi Indonesia ada juga mengimpor minyak dari Brunei?

Narasumber; Ada.Saya : Hmmm. Selain itu apalagi impor Indonesia ke Brunei dan

sebaliknya, selain minyak. Kayaknya Brunei itu minyak saja ya, adanya.

Narasumber: Adalah (yang lain), tapi kecil ya. Aaaah, gimana ya. Tapi lebih banyak ke produk turunan dari minyak, produk petrokimia yang lain ya.

Saya . Petrokimia. Kalau dari urusan KBRI Indonesia ke Brunei, itu apa? Eh, ekspor impornya. Kalau tadikan, Ekspor Brunei ke Indonesia, kalau kebalikannya?

159

Narasumber: Ekspor Brunei ke Indonesia adalah minyak. Impor Brunei dari Indonesia... nah, ini nih, disini dicatat di JPKE itu, bahan saya ada sih sebenarnya, saya mau printkan saja nanti ya. Itu, mesin dan peralatan transportasi yang utama, produk manufaktur dan makanan. Tiga besar itu.

Saya : Dan setahu saya juga ada namanya, ini, senjata-senjata gitu pak? Itu urusan sebelah sana ya (Fungsi Keamanan KBRI)?

Narasumber: Senjata gak masuk di item, memang tidak disebutkan. Itu bisa masuk ke produk manfaktur, atau apa.

Saya : Oke, ini kan sekitar empat tahun terakhir, ekonomi Brunei mengalami kemerosotan, jatuh ya, karena harga minyak yang turun, dan eh, Sultan, apa namanya, eeemm, memberi kebjakan bahwasanya jangan impor, eh jangan ekspor minyak dulu.

Narasumber: Bukan, bukan jangan ekspor minyak. Karena cuma ekspornya cuman itu. Masa gak ekspor. Yang penting adalah diversifikasi, jangan tergantung pada minyak dan gas.

Saya : Terus apa reaksi dari KBRI itu sendiri, setelah ada namaya titah Sultan?

Narasumber: Titah itu kan ditujukan ke pemerintah Brunei untuk mereka memungkinkan bidan-bidang lain untuk dikembangkan, seperti pariwisata, pertanian, perikanan, itukan masuk di bidang pertanian, coba nanti di koran, ada itu, dengan Pt biogene, itu sudah uji coba penanaman ya, mereka mengharapkan 8 matric ton per hektar per musim tanam, dari manapun yang bisa padi yang ditanam disini kalau bisa itu 8 matric ton per hektar per musim tanam, yang sampe, yang hmmm, benih Laila, yang beras Laila itu, baru 3 matric ton, sementara beras yang dicobakan oleh PT Biogene itu sudah mencapai 6 sampai 7, PT biogene itu dari Indonesia.

Saya : Apa kendala terbesar, ya kalau bisa diberitahu, kendala terbesar yang pernah dihadapi KBRI, eeee, antara Brunei

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dan Indonesia terkait Ekonom Internasional, mungkin zaman 2008-2009 ada krisis, atau apa?

Narasumber: Sebenarnya, kalau istilahnya, kendala terbesar dalam ekonomi internasional itu, gak pas juga, lebih ke ekonomi bilateral. Kalau internasionalkan di PBB kan, WTO semua, nah itu Ekonomi Internasional. Nah, kalau yang regional itu Asean. Nah, kalau internasional sih, kita gak ada masalah. Tapi bilateralnya, kendalanya, ehem, apa ya kalau kendalanya ya. Lebih kalau ke kendalanya, eeh, tantangan sebanrnya, eh, pasar Bruneikan kecil, walaupun daya belinya tinggi, tapi, jumlah penduduk kecil, dan produk-produk kita juga bersaing dengan negara jiran, terutama Malaysia, produk sejenis ya. Terus ini, akses eeh, konektivitas antara Brunei dan Indonesia itu yang masih minim. Jalur darat kita ada, tapi untuk truk dagang, itu belum. Laut belum, udara ada tapi banyak dari penumpang.

Saya : Oh oke, kalau lautkan harus pergi ke Singapur dulu (diiyakan Narasumber), terus bayar pajak singapur begitu ya (diiyakan Narasumber)

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2. DIREKTUR KANTOR PENGAWASAN DAN PELAYANAN BEA CUKAI MADIUN

Nama Narasumber : Syaifuddin

Tanggal Wawancara : Kamis, 10 Januari 2019

Jam : 10.00-11.30 WIB

Tempat Wawancara : Kantor Pengawasan dan Pelayanan Bea Cukai Madiun

Topik : Regulasi Cukai barang antar negara

Pertanyaan

A. Gambaran Umum 1. Apa kegiatan umum yang ada di pelayanan bea cukai disini?2. Dalam organisasi apakah Kantor ini melayani bea cukai

perdagangan? Apa pekerjaannya di setiap harinya dan bulannya?3. Secara umum, apa tujuannya, visi dan misinya dalam penentuan

bea cukai ekspor dan impor Indonesia?

B. Pengontrol Jalannya Bea Cukai Impor-Ekspor1. Berapa Tarif bea cukai ekspor impor Indonesia dengan luar negeri

secara umum berdasarkan kuantitas barang?2. Berapa tariff bea cukai khusus perdagangan Brunei dengan

Indonesia?3. Apa kendala yang ada terhadap kegiatan penentuan tariff bea cukai

yang terjadi beberapa tahun kebelakangan ini?4. Bagaimana cara mengatasinya?

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TRANSKIP REKAMAN WAWANCARASaya: Apa kegiatan umum yang ada di pelayanan pajak disini mas?Narasumber: Jadi kantor bea cukai madiun ini secara umum kegiatannya

ada dua, yakni: yang pertama adalah penghimpunan penerimaan negara dari sektor cukai, dan yang kedua adalah penghimpunan penerimaan negara dari sektor bea masuk & bea keluar. Khusus untuk pelayanan pajak ini bukan wewenangnya bea cukai tapi wewenangnya direktorat jendral pajak

Saya: Tapi kalau bea cukai, namanya, perdagangan itu, disini?Narasumber: Perdagangan Internasional. Bea masuk dan bea keluar tadiSaya: Yang kedua, dalam organisasi apa, mungkin secara sektoral, kantor

ini melayaani bea cukai perdagangan? Karena mungkin disini ada beberapa sektor mungkin, saya tidak tahu, di sektor manakah?

Narasumber: Jadi kantor bea cukai Madiun ini secara struktur organisasi terbagi menjadi 5 seksi, nah, khusus untuk yang menangani langsung terkait masalah perdagangan internasional ini ada dua seksi: yang pertama seksi pelayanan kepabeanan cukai dan dukungan teknis, yang kedua, seksi pembendaharaan.

Saya: Itu pekerjaannya apa saja?Narasumber: kalau untuk pertama seksi pelayanan kepabeanan cukai

ini erat kaitannya sama mengawasi kawasan berikat dalam lalu lintas perdagangan impor maupun ekspor. Untuk seksi pembendaharaan, ini tugasnya menghitung jumlah oenerimaan dari sektor bea masuk dan bea keluar tadi. Yang satu melayani, mengawasi jalan keluarnya barang, yang kedua, pembendaharaan hanya menghimpun jumlah penerimaan masuknya berapa, jumlah penerimaan keluarnya berapa

Saya: Itu pekerjaannya setiap harinya, atau ada yang perbulan yang dilakukannya

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Narasumber: Eeeee.... Hampir dilakukan setiap hari. Kalau kegiatan per bulan hanya relatif laporan, tapi untuk pelaksanaanya, selama perusahaan kawaasan berikat itu menjalankan kegiatannya, disitu kami juga bertugas sesuai dengan jam hari-hari kerja mereka

Saya: Yang ketiga, secara umum, visi misinya apa saja?Narasumber: Jadi, visi direktorat jendral bea dan cukai ini, menjadi

institusi kepabeanan dan cukai terkemuka di dunia. Visi tersebut mencerminkan cita-cita tertinggi direktorat jendral bea dan cukai dengan lebih baik melalui penetapan target yang menantang dan secara terus menerus terpelihara di masa depan. Untuk misi nya, misi direktorat jendral bea dan cukai ada tiga: Yang pertama, memfasilitasi perdagangan dan industri. Yang kedua, menjaga perbatasan dan melindungi masyarakat Indonesia dari penyelundupan dan perdagangan ilegal. Dan yang ketiga, mengoptimalkan penerimaan negara dari sektor kepabeanan dan cukai.

Saya: Kontrol jalanya bea cukai ekspor dan impor, yang pertama, berapa tarif bea cukai ini, eeeeh, bea cuai ekspor dan impor Indonesia ke luar negeri secara umum berdasarkan kuantitas barang?

Narasumber: Jadi untuk tarif bea masuk, maupun pajak-pajak dalam rangka impor, ini semuanya sudah termaktub dalam buku tarif kepabeanan Indonesia, atau lebih kita singkat dengan BTKI. BTKI ini disusun oleh WCO, World Custom ORganisation dibawah naungan UN atau PBB, dimana seluruh jenis barang, dialamnya sudah kita atur berapa tarif bea masuknya, maupun pajak-pajak dalam rangka impor lainnya, secara presentase.

Saya: Kalau ini, Yang kedua, berapa tarif bea cukai khusus, perdagangan Brunei dengan Indonesia?

Narasumber: Kalau untuk tarif bea masuk yang diatur antara Negara

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Brunei Darussalam dengan Indonesia ini hanya bisa diketahui oleh direktorat kepabeanan Internasional di kantor pusat direktorat jendral bea dan cukai di Jakarta, nah, untuk perjanjian Internasional, itu memang masing-masing negara itu berbeda, sesuai dengan kerjasama bilateralnya, jadi untuk Madiun, kantor bea cukai Madiun, eeee, tidak mengetahui , atau tidak punya kewenengan untuk mengetahui berapa tarif bea masuk yang dikenakan masing-masing negara.

Saya: Hmmmm, paham, paham , paham.auadaafff Yang ketiga, apa kendala yang ada terhadap penentuan tarif bea cukai ini, mungkin kalau bukan penentuannya, mungkin kendala sehari-harinya saja?

Narasumber: Kalau kendala sehari-hari, petugas bea cukai dalam mentukan ketentuan tarif bea masuk ini, harus disesuaikan dengan, yang pertama, buku tarif kepabeanan Internasional. Yang kedua, harus tahu detil jumlah dan jenis barang, karena biasanya, masing-masing petugas itu tidak jarang dijumpai perbedaan persepsi dalam penggolongan jenis barang, mas. Misalkan, produk olahan hewan. Kalau disini (membuka buku BTKI), detilnya ada, mulai dari kulit, daging sampai dengan tulang. Nah, Kalau misalkan ada dijumpai, contoh, kasus impor mengimpor barnag, itu petugas bea cukai harus detil: ini hanya kulitnya saja, atau dagingnya saja, atau tulangnya saja, atau ketiga-tiganya, atau salah duanya, disini harus butuh ketelitian atau kejelian petugas bea cukai dalam menentukan jenisnya itu, cost tarifnya ada, atau klasifikasinya ada dimana.

Saya: Itu ya kendalanya, jadi, cara mengatasinya tadi, ya itulah, artinya harus menguasai BTKI, terus...

Narasumber: harus jeli dalam menentukan jumlah dan jenisnya sampe sedetil-detilnya, sehingga bisa ditemui ini masuk dalam cost atau subleading yang mana, kodenya.

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3. General Manager PPJK (Perusahaan Pengurusan Jasa Kepabeanan) dan FF (Freight Forwarder) Jakarta

Nama Narasumber : Fuad Firdaus

Tanggal Wawancara : Selasa, 12 Februari 2019

Jam : 09.00-09.30 WIB

Tempat Wawancara : Pelabuhan Tanjung Priok

Topik : Pengawasan jalanya Transportasi dan Koneksi Ekspor dan Impor

Pertanyaan

A. Gambaran Umum1. Apa saja yang kegiatan di pelabuhan tanjung priok terkait kegiatan

ekspor impor barang antar negara?2. Apa saja wewenang dari pelabuhan tanjung priok terhadap barang

yang akan di ekspor dan impor? (Harga, Rute, Keamanan dan

lainnya)

B. Pengontrol Jalannya Pelabuhan Tanjung Priok1. Bagaimana sistem suatu perusahaan agar akhirnya bisa melewati

Pelabuhan Tanjung Priok untuk barangnya bisa diekspor dan diimpor?

2. Berapa banyak barang yang diekspor ke Brunei Darussalam? Berapa lama barang itu bisa sampai ke negara tersebut? Berapa tariff yang dikenakan untuk melewati pelabuhan ini?

3. Apa kendala yang terjadi di Pelabuhan Tanjung Priok?4. Bagaimana cara mengatasinya?

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TRANSKIP REKAMAN WAWANCARASaya: Pertanyaan pertama itu, apa, ini gambaran umumnya, apa saja

kegiatan di pelabuhan Tanjung Priok secara umum terkait kegiatan ekspor impor barang antar negara:

Narasumber: Ya pastinya kegiatannya, eee, tentang kepelabuhanan ya, lebih kepada bongkar muat. Bongkar muat barang, baik itu yang kegiatan domestik maupun internasional, baik itu barang peti kemas maupun barang non-peti kemas. Itu jadi, secara umum, sebenarnya pelabuhan tanjung priok adalah tempat bongkar muat. Dah itu.

Saya:Oke, eh, setelah itu apa saja wewenang dari pelabuhan Tanjung Priok terhadap barang yang akan diekspor dan diimpor?

Narasumber: Jadi di pelabuhan tanjung priok itu sebenarnya ada beberapa institusi lah yang, yang memiliki kewenangan masing-masing. Misalkan, ada bea cukai, itu instansi dari pemerintah yang menangani masalah, eeeee, bea dan masuk dan pajakmya, jadi setiap barang yang masuk pasti kena bea, atau pajak, itu yang di, di, ditarik oleh si bea cukai. Kemudian ada lagi karantina, eee, instansi karantina ini adalah yang mengawasi, keeeee, barang-barang yang masuk atau keluar yang barang tersebut ada kaitannya dengan hewan, tumbuhan maupun ikan. Maka itu haru melalui proses di karantinanya. Kemudian, ada lagi imigrasi, nah, imigrasi adalah untuk mengawasi, eeh, terkait dengan orangnya, keluar masuk orang orangnya, dari luar atau dari dalem, nah itu, eee, perizinan nanti di, di, dilakukan oleh imigrasi. Kemudian ada lagi kantor kesehatan, kesehatan itu adalah terkait dengan penyakit yang mungkin akibat dari lalu lalang orang dari luar atau dalam, itu kemudian, ada kantor kesehatannya yang akan mengawasi itu, eeee, adanya, eeeeh, penyakit yang mungkin dari luar, , lewat, lewat orangnya bukan, eee, kalau lewat binatang ada dari karantinanya, seperti itu. Kemudian,

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ada lagi Kasyahbandara, Kantor Kesyahbandaran. Kantor Kesyahbandaran itu tugasnya sebenarnya itu untuk mengatur kapal melalui kapal terkait dengan perizinan dia masuk kapal, bisa labuh atau bersandar, kemudian dia juga yang akan mengatur apakah, eee, kapal itu bisa berlayar atau tidak, pada saat dia dari pelabuhan, kesehatan kapal, kelaikan kapal dan keselamatan berlayarnya. Kemudian adalagi kantor otoritas pelabuhan, kantor otoritas pelabuhan itu fungsinya untuk mengatur atau membuat regulasi terkait dengan kegiatan yang ada di pelabuhan secara umum baik dari sisi bongkar muatnya, kemudian dari sisi kegiatan aktivitas yang ada dalam pelabuhan, itu diatur oleh otoritas pelabuhan, nah begitu, karena dia mewakili kementerian perhubungan ya, kemudian adalagi kita sebut operator pelabuhanlah, nah, operator pelabuhan ini macem-macem, ada Pelindo (Pelabuhan Indonesia II) sebagai pengelola fasilitas, kemudian ada lagi PBM (Perusahaan Bongkar Muat) sebagai perusahaan untuk melakukan kegiatan bongkar muat, ada lagi mungkin Pelayaran yang sebagai operator kapalnya, kemudia ada lagi Freight Forwarding yang menangani barang dari door to doornya begitu, dan kemudian pihak lainnyalah, seperti itu. Termasuk terminal juga disebut sebagai operator, seperti itu.

Saya: Oke, wewenang mengenai harga rute dan keamanan itu sudah tercantum diantara bawah-bawah sini ya? (Narasumber mengafirmasi), kalau rute itu...

Narasumber: Rute itu di KesyahbandaranSaya: Harga?Narasumber: Ke OtoritasSaya: Dan keamanan tadi..Narasumber: Keamanan di kesyahbandaran.Saya: Oh ya, oke. Selanjutnya, oke, ini pengontrol jalannya pelabuhan

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tanjung priok. Bagaimanaa sistem suatu perusahaan agar akhirnya bisa melewati Pelabuhan Tanjung Priok untuk barangnya bisa diekspor atau diimpor?

Narasumber: Jadi, secara, ini dari sisi arus barangnya saja ya. Arus barangnya jadi, untuk bisa ekspor atau impor, mmmmmmm, secara umum sih, aturannya sih ke, lebih ke banyak yang berperan disitu adalah bea cukainya. Itu sesuai, kalau barangnya itu adalah ekspor dan impor ya. Misalnya disitu, kalau misalkan kita impor, kalau ktia sudah impor, maka barang impor itu harus di, diberitahukan dulu kepada bea cukai dalam bentuk PIB (Pemberitahuan Impor Barang), ada pemberitahuan impor barang. Nah, lewat PIB itu kemudian si importir itu menyampaikan data-data barang mana saja yang diimpor atau spesifikasi barang apa saja yang diimpor oleh si importir dari luar ke dalam. Itu melalui, itu di, di, di, di data-data itu, kemudian di, di, di apa dituangkan atau diisi, dilengkapi ke dalam Form PIB tadi. Form Pay Bea itu kemudian setelah dilengkapi, maka PIB itu di, ditransfer oleh si importir atau oleh BPJK. BPJK ia adalah perusahaan jasa kepabeanan yang mewakili importir untuk menangani kastam pembayaran. Nah itu, data tadi kalau pada saat dia mau diform, datanya dikirim ke bea cukai via aplikasi atau sistem yang punya bea cukai, lewat aplikasi itu, PIB tadi dikirim. Nah, kemudian dari proses itu, di sistemnya bea cukai diproses, data-data itu diolah. Nanti apakah, eeeh, nanti ada kena jalur hijau, kemudian jalur merah atau jalur kuning, itu ada step-stepnya. Tapi sebelum, kalau yang sekarang sih, sebelum melangkah ke respon tadi, biasanya setelah di res, eh di transfer, maka akan timbul respon billing dulu, billing tadi tagihan. Jadi nanti di dalam, pada saat importir mengirim data PIB d dalam, termasuk adalah data berapa jumlah bea masuk dan pajak yang harus dibayar oleh importir terhadap barang

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yang masuk tadi, nah itu dimasuk disitu. Nah setelah di, di transfer maka dia harus membayar sesuai dengan jumlah yang tertera di PIB. Begitu dia sudah dapat form billing itu, kemudian dia bayar itu, setelaha bayar bea masuknya, baru nanti ditransfer dulu lagi, nanti ada, eeeeh ada respon susulan, nanti tadi saya bilang, ada setelah bayar pajak, nanti ada respn, apakah dia masuk jalur hijau, merah atau kuning. Perbedaannya, kalau jalur hijau, itu maka langsung tim responnya adalah SPPB. Nah, artinya itu adalah barang bisa langsung dikeluarkan dari pelabuhan untuk dibawa ke importir. Tapi ada lagi, responnya jalur kuning, kalau jalur kuning ya, itu barang itu harus di, belum bisa dikeluarkan dulu tapi si importir wajib menyerahkan dokumen terlebih dahulu kepada bea cukai, secara dokumen aslinya. Setelah dikeluarkan, setelah diserahkan baru mungkin, baru setelah itu ada respon SPPB nya atau sehingga barang bisa dikeluarkan. Nah, kalau, ya, jalur merah itu maka, barang itu harap bisa dikeluarkan dahulu karena harus diperiksa dahulu secara fisik. Setelah diperiksa secara fisik, nanti di, hasilnya nanti kalau misalkan gak ada masalah ya bisa habis itu responnya ke SPPB atau bisa dikeluarkan, seperti itu.

Saya: Kalau secara Ekspor?Narasumber: Kalau ekspor kebalikannya, jadi kalau ekspor nanti si

pihak exportir akan membuat sama, mengisi data-data dalam bentuk PEB, Pemberitahuan Ekspor barang, data-data dimasukkan ke situ, kemudian biaya transfer, dari sisi barang yang dimasukkan ke dalam gudang atau dimasukkan ke dalam terminal, dikirim ke dalam terminal. Kemudian, nanti diresponnya kalau, kalau, kalau, kalau dari, kalau untuk ekspor kalau gak dari PEB atau gak NPE, Nota Pelayanan Ekspor, Nota Persetujuan Ekspor. Setelah ada ne, nota eeeeh, persetujuan ekspor tadi, maka barang itu bisa me eeee, bisa

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dimuat ke kapal, kemudian dikirim ke luar negeri. Ekspor lebih simpel daripada impor

Saya: Selanjutnya, aaah, kalau ini terkait data, mungkin ada atau tidak ya. Berapa banyak barang yang di ekspor ke Brunei Darussalam

Narasumber: Waduh, saya gak punya. Yang punya seharusnya di Port-port, cabang pelabuhan tanjung priok, atau di terminal. Kalau yang secara umum, satu pelabuhan, di cabang pelabuhan tanjuing priok datanya.

Saya: Artinya juga, belum ada ini ya, berapa tarif yang dikenakan untuk melewati pelabuhan ini?

Narasumber: Tarifnya macem-macem mas. Karena ada tarif yang dikeluarkan dari terminal, itu kaitannya dengan kegiatan penanganan bongkar muatnya di terminal ya. Kemudian ada tarif yang dikeluar, yang ditarik oleh eeeeeeh, ya itu tadi bea cukai untuk bea masuk dan pajaknya, kemudian ada tarif untuk handling karantinanya. Pada saat ada yang lewat karantina, maka ada tarifnya yang resmi dari karantina. Kemudian ada tarif, bongkar muat tadi sudah, kemudian ada tarif, eeeeeeeee, pelayarannya untuk Freight nya, ya kan. Kemudian ada tarif penanganan eeeee untuk dari Freight Forwardingnya, pengenaan barang yang dari, aah, dari keseluruhan pelabuhan kan, bahwasanya ditangani oleh Freight Forwarding tuh, nah itu ada tarif yang dikeluarkan dari forwardingnya

Saya Artinya secara nominal, kita harus tahu dari masing-masingNarasumber: Ya, dari masing-masing, dari pelayaran berapa satu

dokumennya, kemudian dari eeeeeh, terminal berapa, kemudian dari, mana lagi, bea cukai turut dikenakan berapa, kalau ada kena karantina berapa, dan lain-lainnya itu.

Saya: Mungkin di internet ada mungkin terdataNarasumber: Kalau, tidak semua ada di internet. Tidak semua. Kalau

untuk pelayaran itukan, kayaknya gak dipublish. Kalau untuk

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terminal, mungkin ada terminal, ada di, kalau untuk biaya terminal, bongkar muat terminal mungkin bisa dipublish di internet, misalkan CHC (container handling charges) atau THC (Tarif Handling Charge/Terminal Hand Charge) sudah jelas, kalau THC disini 20ft itu 90 Dollar, kalau 40ft itu katakanlah 130 dollar untuk overseas. Itu yang saya tahu ya. Jadi Terminal Hand Charge itu adalah begini, ditarik oleh pelayaran, tapi atas kegiatan bongkat muat di, di terminal. Kalau tarif terminalnya sih sebenarnya, kalau gak salah 20 itu 80 Dollar, 80, 70 atau 80 dollar, saya agak lupa. Kalau yang pan, yang 40 ft nya kalau gak salah 90an lah. Jadi ya terminal lebih tinggi dari pelayaran, karena pelayaran ada, ada, ada biaya, ada biaya lagi, biaya tambahan begitu

Saya: Oke, pertanyaan terakhir, kendala secara umum dan cara mengatasinya setiap tahunnya itu apa di Tanjung Priok?

Narasumber: Yah, sebenarnya banyak lah. Tapi kan, tapi kalau, kalau dari sisi pemerintah, itu kan ya mungkin kalau liat dari berita-berita kan, Dwelling Time itu masalah, masalah dwelling time, jadi lamanya barang berada di dalam pelabuhan, begitu. Jadi, lamanya barang dalam pelabuhan sebelum dia bisa dikeluarkan dari pelabuhan sendiri pada saat mengurus, istilahnya itu berapa lama sih barang itu ditumpuk-tumpuk pelabuhan sebelum dia keluar dari pelabuhan. Itu impor ya, dari sejak dia, kapal datang, kapal tiba di pelabuhan, sampai barang itu tiba di pelabuhan itu, itu disebut Dwelling Time.

Saya: Kenapa sangat bermasalah?Narasumber: Ya karenakan kecepatan, semakin lama, biaya semakin

tinggi. Nah, Kecepatan itu yang yah pemberitahuan, walaupun sebenarnya kan, sebenarnya sih dwelling time juga kan, tergantung dari importirnya ya. Ada yang importir itu menjadikan pelabuhan itu sebagai eeeh, ininya dia bet, apa, sebagai storagenya dia lah, tempat penumpukannya dia, jadi,

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eeeh, barangnya sudah dateng, tapi karena dia belum butuh, raw material itu masih di ini, masih dengan antrian dia masih bisa, jadi di biarin saja di pelabuhan. Dan itu sebenarnya menambah biaya, tapi ya, ya itu yang kadang-kadang terjadi seperti itu, kadang-kadang terjadi seperti itu. Ya, walaupun dari sisi pelabuhan sebenarnya akan, dia akan rugi, kalau misalkan barang sebentar disimpan, maka turn overnya semakin sedikit, padahal semakin tinggi turn over, dia bisa mendapatkan, mendapatkan rugi gitu loh.

Saya: Harusnya kan pelabuhan untung, karena dapat....Narasumber: Dari sisi penumpukan, iya. Tapi dari sisi kapasitas, capacity

sebenarnya ada rugi. Karena sebenarnya besar, tarifnya yang besar itu di handlingnya bukan penumpukannya. Tapi yang sekarang memang, tarif penumpukan diperbesar profisit itu untuk sengaja diperbesar sampai beberapa kali lipat dari tarif dasar sampai ada yang 900%, itu, itu memang sengaja untuk menekan importir atau pemilik barang agar segera mengeluarkan barang dari tempat itu, dan tidak menjadikan pelabuhan sebagai ya untuk storage lah atau untuk barang inventory. Karena harus pelabuhan bukan sebagai barang, bukan sebagai tempat penumpukan, tapi sebagai barang transit sebenarnya, mestinya begitu kan, ya memang yang berlaku di seluruh dunia seperti itu.

Saya: Kalau permasalahan secara ekspor, ada?Narasumber: Ekspor secara ini sebenarnya kalau ekspor lebih simpel,

jadi kalau menurut saya sih, tidak ada. Tapi lebih, mungkin kalaupun ada adalah aturan dari be, dari pemerintah terkait tentang pembatasan beberapa barang-barang tertentu, Paling itu. Kalau ekspor rata-rata sih tidak ada, gak ada masalah

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4. Praktisi Logistik Ekspor Impor (Owner PT Multi Prima Mandiri)

Nama Narasumber : Budi Santoso

Tanggal Wawancara : Selasa, 12 Februari 2019

Jam : 13.30-15.00 WIB

Tempat Wawancara : Gedung Pulomas Satu

Topik : Penejelasan mengenai jalanya Koneksi dan Bea Cukai Ekspor dan Impor menurut Praktisi.’

Pertanyaan

A. Gambaran Umum1. Apa saja yang kegiatan di pelabuhan tanjung priok terkait kegiatan

ekspor impor barang antar negara?2. Apa saja wewenang dari pelabuhan tanjung priok terhadap barang

yang akan di ekspor dan impor? (Harga, Rute, Keamanan dan lainnya)

3. Apa kegiatan umum yang ada di pelayanan bea cukai di Indonesia secara umum?

4. Dalam organisasi apakah kepabeanan Indonesia melayani bea cukai perdagangan? Apa pekerjaannya di setiap harinya dan bulannya?

5. Secara umum, apa tujuannya, visi dan misinya dalam penentuan

bea cukai ekspor dan impor Indonesia?

B. Pengontrol Jalannya Pelabuhan Tanjung Priok1. Bagaimana sistem suatu perusahaan agar akhirnya bisa melewati

Pelabuhan Tanjung Priok untuk barangnya bisa diekspor dan diimpor?

2. Berapa banyak barang yang diekspor ke Brunei Darussalam? Berapa lama barang itu bisa sampai ke negara tersebut? Berapa

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tariff yang dikenakan untuk melewati pelabuhan ini?3. Apa kendala yang terjadi di Pelabuhan Tanjung Priok?4. Bagaimana cara mengatasinya?5. Berapa Tarif bea cukai ekspor impor Indonesia dengan luar negeri

secara umum berdasarkan kuantitas barang?6. Berapa tariff bea cukai khusus perdagangan Brunei dengan

Indonesia?7. Apa kendala yang ada terhadap kegiatan penentuan tariff bea cukai

yang terjadi beberapa tahun kebelakangan ini?

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TRANSKIP REKAMAN WAWANCARASaya: Yang pertama, apa saja kegiatan di pelabuhan, khususnya di

pelabuhan tanjung priok terkait ekspor impor barang antar negara?

Narasumber: Ekspor dan Impor antar negara. Ehhhh, gini. Nanti tinggal ngebalik, dibalik aja ya, karena persepsinya akan sama. Saya akan ceritakan dari konsep impornya dulu. Konsep impornya dulu, itu, itu eeeeh, harus terjadi dulu transaksi antara penjual dengan pembeli. Penjual dan pembeli, setelah deal, antara penjual-pembeli, nah, baru disitu mereka akan bicara mekanise, eh, mekanisme pembayaran seperti apa. Nah, apakah lewat perbankan, nah apakah berdasarkan kepercayaan antar kedua belah pihak saja, itu tergantung dari sales kontrak antar buyer dan seller. Setelah itu, eeee, mereka sudah setuju, kalau sudah setuju begitu, baru pihak supplier atau seller, dia akan eeeeee mengirim barang. Mengirim barang itu, ini dengan, ini kalau tidak pakai L/C (Letter of Credit) ya, kalau tidak pakai L/C itu, dia, L/C, Letter of Credit, itu mekanisme pembayaran lewat perbankan. Nah, letter of credit, kalau pakai L/C, itu, pembeli yang disini buka L/C dulu ke perbankan, buka L/C ke perbankan, L/C dikirim ke negara eksportir, Brunei misalkan, anggap Brunei, nanti penjualnya dapat L/C dari banknya di Brunei. Dari sini, misalkan si, eeee, pembelinya buka L/C ke BNI, kemudian BNI meneruskan ke Bank of Brunei, Bank of Brunei meneruskan lagi kepada si, eeeeee, penjualnya atau eksportir disana. Nah, term of conditionernya, kondisi ya diminta, yang telah disepakati kedua belah pihak antara, eeee, penjual dan pembeli, itu ada di dalam L/C. Nah, setelah itu, si eksportir menyiapkan barang sesuai permintaan yang ada di dalam sellers kontrak. Sesudah menyiapkan barang, barangnya sudah siap, barangnya dikapalkan. Dikapalkan,

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dia pesan kontainer, kemudian dari kontainer, eee, di, eee, kirim ke, dia muatin barangnya ke dalam kontainer, kontainernya di kirim ke pelabuhan. Dari pelabuhan Brunei, kirim ke Pelabuhan Tanjung PRiok. Nah, setelah sampai di, eee, dalam masa perjalanan itu barangnya, si eksportir yang di Brunei akan mengasih dokumen kepada Bank of Brunei. Bank of Brunei kirim dokumen itu kepada BNI. BNI kirim dokumen itu kepada si pembeli disini. Pembeli sudah dapat dokumennya, barangnya sudah sampe ke Tanjung Priok, si pembeli proses custom clearance. Nah itu tadi, pertanyaannya, apa yang di tanjung priok? Nah, proses custom clearance lah itu di Tanjung Priok. Proses custom clearance itu, si importir ini ngajuin, bikin dokumen yang namanya PIB (Pemberitahuan Impor Barang). Setelah bikin PIB, barangnya apa saja, haraganya berapa, apa segala macem, nanti ada bea masuk, ada PPN, ada PPH. Nah, itu dibayar dulu di bank, dia bayar dulu di BNI. Setelah dia bayar di BNI, sama BNI rekeningnya si, eeee, importirnya itu di debet untuk disetor kepada negara. Nah, ama BNI di chart, artinya sudah bayar pajak. Nah, dokumen itulah nanti, eeee, sama si importir, melalui PPJK kayak perusahaan disini, itu transfer PIB itu ke bea cukai, pajaknya sudah dibayar, Bank juga secara elektronik data kirim juga ke bea cukai, bahwa bener, dokumen ini sudah didebet, sudah dibayar kepada negara, Nah, setelah dokumen itu masuk, dari bank masuk, dari forwarding, PPJK seperti kita juga masuk ke bea cukai, itu nanti dari bea cukai muncul respon. Responnya apa? Bisa jalur kuning, jalur merah atau jalur hijau. Anggap jalur hijau, nah, begitu dapat jalur hijau, ada respon dari sistemnya bea cukai, muncul yang namanya SPPB, Surat Persetujuan Pengeluaran Barang. Artinya, pajak sudah dibayar, barangnya benar, apanya semua benar, sama bea cukai diizinkan keluar.

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Begitu sudah dapat SPPB, baru kami sebagai perusahaan PPJK yang ditunjuk sama si impotir, kita nebus DO (Delivery Order), DO itu surat jalan, dari pelayan kita nebus, kita ambil, kemudian kita ke terminal Tanjung Priok, bayar penumpukan. Eeee, nayar penumpukan di terminal berapa, bayar handlingnya berapa, segala macem kita selesaikan. Sudah selesai itu, sudah, kontainernya bisa ditarik sama kita, PPJK, kirim kepada impotir. Udah cuman begitu saja. Itu tadi, kalau entar ditanya, itu kata saya, tadi saya import, kalau export tinggal dibalik

Saya: Oh ya, jadi sama saja sistemnya?Narasumber: Sama saja. Kalau export, exportirnya, eeeee, kalau by L/C,

sebaliknya, yang buka L/C, dari Brunei buka L/C, kirim kisini, exportir disini baca L/C nya. Yang diminta di L/C apa? Invoice (Faktur perdangan), Packing List, BL (Bill of Lading (Konosemen)), Certificate of Origin, bla,bla, bla segala macem, dah, siapin barangnya, certificatenya siapin, segala macem ok, ambil kontainer di pelaya, eee, pelayaran, bawa ke gudangnya, barangnya dimasukin. Masukin, tutup, segel, seal, kirim ke pelabuhan Tanjung Priok. Pelabuhan Tanjung Priok, kirim ke Brunei. Urusan di Brunei, urusannya mereka.

Saya: Oh ya, ya, ya, ya. Ini belum saya tanyakan yang sebelumnya, tapi tadi terbesit. Apakah tanggung jawab ketika di perjalanan, dan ketika, ini gak tahu ya, transit ke Singapur. Itu, ada tanggung jawab antar, eeee, pelabuhan ke pelabuhan?

Narasumber: Tidak. Jadi gini, eeeee, makanya, tadi saya tanya, mau tanya dari mana tadi. Di dalam internasional term, itu ada di bawah WTO yang namanya, eeeee, apa, eeeeee, United Chamber Practice, UCP, (setelah ditelusri, yang benar adalah International Chamber of Commerce or IO Uniform Customs and Practice), UCP itu, tata cara perdagangan internasional, itu diatur di dalam UCP itu, dari mulai L/C, dan, eeeee,

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tanggung jawab dari semua pihak. Nah, kalau pertanyaan masalah siapa tanggung jawab, di dalam UCP itu, term itu, yang paling umum ada tiga, term and condition. Term paling, eeee, and conditon yang paling umum ada FOB, ada C&F, ada CIF. Freen on Board, Cost & Freight, sama Cost, Insurance & Feight. Nah, disitu, pertanyaan siapa yang bertanggung jawab, dilihat dari term tersebut. Term tersebut, dia misalkan, dari sisi mana nih? Kalau ba, balik lagi misalkan dari si, kita cerita dari impor. Kita cerita dari import, eeeeee, kita import dari Brunei dengan kondisi CIF, Cost, Insurance and Freight. Artinya, harga barang tersebut, sudah mencover harga barang tersebut, harga angkutan/Freight, dan insurance. Jadi tiga-tiganya sudah tercover, Cost, Insurance and Freight. Sudah tiga-tiganya sampai ke pelabuhan tanjung priok. Kalau dalam perjalanan, Brunei sampai ke Tanjung priok, kapalnya tenggelem, itu yang akan dapat pergantian adalah si Brunei, exportir, karena dia jualnya CIF, begitu, jadi yang dapat pergantian mereka (Brunei). Yang menanggung semua itu, yang mencover semua asuransinya adalah si penjual. Tapi kalau dengan kondisi FOB, atau C&F, yang nanggun insurance nya pihak kita, pembeli. Jadi pada saat dokumen dia kirim, kondisinya, aaaa, C&F, kita datang ke asuransi disini, nih, saya punya barang dari Brunei, eeeee, BL nomor segini, eeee, invoice nomor segini, nilainya segini, saya mau tutup asuransi. Jleeek, keluar polis, jadi ya. Nah, kalau terjadi sesuatu dari Brunei sampai Jakarta, yang dapat pergantian adalah si pembeli, karena yang tutup asuransinya disini. Gitu. Itulah

Saya: Itu artinya, ceritanya, apakah itu transit ataupun perjalanan, itu sama saja?

Narasumber: Gak ada pengaruh, mau transit mau tidak, pertanggungjawabannya lebih kepada Term on Conditionnya.

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Saya: ya, oke, oke, oke. Pertanyaan kedua, Apa saja wewenang dari pelabuhan Tanjung Priok terhadap barang yang akan diekspor dan diimpor.

Narasumber: Gini, kalau pelabuhan itu fungsinya cuman terhadap aktivitas fisik kontainer, Baik impor maupun ekspor. Tanggung jawabnya dia adalah, eee, pelabuhan, pelabuhan Tanjung Priok dalam hal, pasti, eeee, persepsinya adalah sebagai terminal. Sebagai terminal, eee, ini, dia tugasnya adalah menyadarkan kapal, bongkar muat, taro di, eeeee, yardnya dia, sampai barang itu diambil sama pemilik barang impor. Atau expor, si exportir kirim ke yard, dimanage di dia, diatur sama dia, sampai barang itu naik ke atas kapal. Itulah tanggung jawabnya Pelabuhan Tanjung Priok.

Saya: Tidak ada hubungannya sama harga, tidak ada hubungannya sama, ‘rute mana ini?’,

Narasumber: Tidak, tidak. Dia cuman port management. Ah, Pelabuhan Tanjung Priok itu cuman Port Management, hubungannya dia lebih kepada pelayaran. Kalaupun kepada, eeeeee, pengguna jasa langsung, itu, yang tadi, cas nya cuman THC, Terminal Handlingnya Charge, sama Storage.

Saya: emmm, jadi kalau yang, eee, rute sama keamanan sama harga itu yang menentukan siapa?

Narasumber: Rute itu ya, si pemilik barang, dia mau kirimnya ke mana. Bookingnya sama, sama forwarding mana, sama pelayaran mana. Dia sudah booking duluan sama pelayaran A, mau ekspornya ke Brunei, ya sudah, dia booking sama pelayaran A, dikirim ke Pelabuhan Tanjung Priok, si pelayaran itu nanti yang ngatur naik kapalnya kapal ini, karena di Brunei gak ada yang langsung dari Priok, mampir ke Singapur dulu atau apa, mereka yang ngatur, pelayaran yang ngatur, bukan pelabuhan, pelabuhan cuman Port Facility.

Saya: mmmm, faham, faham. Eeeee, sekarang pengontrol jalannya

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pelabuhan ini. Bagaimana, ee, tadi sebenarnya udah kayaknya yah, bagaimana sistem sesuatu perusahaan agar akhirnya bisa melewati Pelabuhan Tanjung Priok, untuk barangnya bisa diekspor?

Narasumber: Barang untuk diekspor, ya, eee, harus mela, ada beberapa yah, eeeee, satu, eeee, kalo secara dokumentasi, berurusan dengan kepabeanan, Bea Cukai, baik dia kena pajak eksport maupun tidak kena pajak ekspor, dokumennya harus melalui bea cukai, dokumen untuk ekspor. Tapi kalo berkenaan dengan fisik barangnya, yah, itu lewat perusahaan jasa kepabeanan kayak kita gini, kirim ke pelabuhan, diterima sama pelabuhan, sama pelabuhan nanti dinaikin ke atas kapal sesuai dengan dokumennya

Saya: Ok, Ini yang terakhir. Apa kendala yang terjadi di pelabuhan Tanjung Priok dan bagaimana cara mengatasinya? Selain itu juga, kendala perizinan antar negaranya itu bagaimana?

Narasumber: Kendala Pelabuhan Tanjung Priok, kalau saya sih melihat sekarang, eeee, kendala dari sisi apa ya, Dari sisi dokumen apa dari sisi kepelabuhanannya?

Saya: Oh, bisa dua-duanya.Narasumber: Kalau dari sisi dokumen, eeeee, normal saja, karena bea

cukai sudah cukup koperatif, dari jalur merah yang 16% sekarang tinggal 7%, itu sudah cuku, sudah cukup koperatif, artinya dia sudah nurunin, eee, proses, eeee, jalur merahnya. Harusnya, eeee, pengguna jasa itu sudah cukup satisfied atas pelayanan itu, sudah cukup puas, harusnya sudah cukup puas dari yang sebelum 16% sekarang tinggal 7% jalur merahnya

Saya: Itu yang membuat naik turun itu apa?Narasumber: Kebijakan pemerintah. Sekarang dia turun. Tapi kalau dari

segi pelayanan, eee, fisik kepelabuhanan sih, gak ada, karena mereka begitu, eee, terima barang, dia kan mau buru-buru keluar semua barang.

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Saya: Ya, kalau yang tadi yang di , eee, pelabuhan menyebutkan dwelling time,

Narasumber: Ya itu, jadi gini, dwelling time itu dulu, sebelum pak Jokowi ribut-ribut, di Priok itu rata-rata dwellin time 9 hari. Tapi sekarang sudah menjadi, 3.2 hari. Dwelling Time itu adalah rata-rata lama pelabuhan, eeee, rata-rata lama kontainer ada di pelabuhahan. Import loh, dwelling time itu ukuran untuk import, bukan ekspor. Jadi, rata-rata dulu masih 9 hari, tapi sekarang tinggal 3.2 hari, harusnya sudah tidak ada keluhan. Keluhan dari pengguna jasa.

Saya: Kalau kendala perizinan antar negara, di Brunei (Narasumber: Brunei saya tidak tahu) dimana-mana negara?

Narasumber: Dimana-mana negara. Perizinan itu, eeee, masing-masing negara beda beda, regulasinya beda-beda. Saya gak bisa bilang negara A, B, C segala macem, mereka punya perizinan masing-masing, itu mengacunya pada, eeee, ini saja, eeee, liat di apa, eeeee, kementerian perdagangan, itu biasanya mereka, eee, punya list, antar negara ini dia, eeee, untuk ekspor impornya seperti apa perizinannya, itu lebih, lebih, ininya kepada itu, karena kita, teruatama saya, gak, gak tahu persis Brunei itu punya regulasinya seperti apa. Tapi, untuk negara Asean, itu kita sudah sepakat, biasanya ada fasilitas untuk barang yang produk ASEAN masuk ke negara ASEAN itu bea masuk yang ta, dari segi kepabeanan ya, bukan dari segi pelayanan, dari segi pajak yang ta, eeeee, bea masuk 10 turun jadi 5, 5 menjadi 0, asal punya certificate of origin namanya. Certificate of Origin adalah sertifikat yang menyatakan bahwa barang tersebut adalah buatan negara tersebut, antar Asia Tenggara.

Saya: Kegiatan umum pelayanan bea cukai itu apa pak, dalam ekspor impor?

Narasumber: Gini, bea cukai itu adalah petugas pemerintah, yang

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fungsinya adalah sebagai penjaga pintu, sebagai penjaga pintu atas, eeee, pajak. Pajaknya belum tentu untuk bea cukai, karena pajak macem-macem. PPH (Pajak Penghasilan) dan PPN (Pajak Pertambahan Nilai) itu dipungut oleh Dirjen Pajak, tapi PPH Impor dan PPN Impor, itu yang mungut untuk dirjen pajak tapi melalui Bea Cukai, dipungut di saat melakukan impor. Nah, tugasnya bea cukai hanya menjaga, memastikan bahwa Pajak sudah dibayar. Nah, sepanjang pajak sudah dibayar, bea cukai tidak punya hak untuk menahan barang tersebut, sepanjang regulasinya terpenuhi. Regulasinya seperti apa? Regulasinya bisa macem-macem. Eeeeee, kalau sekarang itu, yang pasti orang harus punya namanya N.I.B, Nomor Induk Berusaha. Kalau sudah punya nomor induk berusaha, dia sudah punya A.P.I, Angka Pengenal Impor(tir), sudah boleh, eeeee, melakukan impor, nah, dia boleh sudah, sepanjang dia masuk PPN PPH nya dibayar, bea cukai gak berhak untuk menahan. Jadi, eeee, kalau sudah punya N.I.B, dia punya A.P.I, Angka Pengenal Impor(tir), berarti dia suda, eeee, keregister ke bea cukai, berarti N.I.K (Nomor Induk Kepabeanan) nya sudah ke register.

Saya: Ok, Jadi kegiatan umumnya adalah me, apa ini, nagih begitu, bea cukai?

Narasumber: Ya, menagih pajak terhutang atas barang import, barang import dan export. Eeee, kalau ekxpor, sedikit yang kena, eeee ekspor, yang kena pajak itu, apa ya, barang tambang kayak batu bara, eeee, minyak, kemudian CPO (crude palm oil), itu kena pajak ekspor, tapi yang lainnya gak ada pajak ekspor. Makanan, semua hasil produksi, semua hasil pabrik, tidak ada pajak ekspor, begitu, kecuali hasil pabrik yang pengolahan, eee, apa, dari perkebunan kayak CPO, itu kena pajak Ekspor. Tapi kalau impor, hampir semua barang kena,

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seluruh barang kena. Eeeee, kalau bea masuk, ada yang kena ada yang tidak, tapi PPN dan PPH pasti kena, PPN 10%, PPH 2,5%, begitu

Saya: Katanya tadi, kan tugasnya menagih tapi bukan menahan?Narasumber: Ya, artinya gini, kalau kewajiban pajaknya belum dipenuhi,

atau persyaratan impornya tidak terpenuhi, bea cukai sebagai pel, aaa, penjaga pintu pabean Indonesia, dia berhak menahan. Jadi misalkan, import dari Brunei, dia barangnya harus ada ijin dari Menteri, eeee, Perdagangan, walaupun pajak sudah dibayar, tapi ijin dari perdagangannya tidak ada, sama bea cukai tetap ditahan.

Saya: Kalau begitu, dalam organisasi, saya tidak paham bahasanya apa, tapi dalam organisasi apa di bea cukai ini yang melayani perdagangan ekspor impor? Kan bea, mungkin bea cukai ini banyak ininya, eeeee, pembagian-pembagiannya, mungkin dalam apa yang melayani ekspor impor khususnya? Atau memang bea cukai itu untuk itu?

Narasumber: Itu, eeee, namanya juga instansi bea dan cukai, dia fungsinya adalah mengawasi bea masuk atas semua barang yang mau masuk ke Indonesia dan pita cukai, pita cukai kayak kita beli rokok kan ada pita cukainya, ini ada tulisan sama bea cukai juga, begitu.

Saya: Oh, artinya kalau misalkan yang mengurusi produk dengan ekspor impor, itu beanya?

Narasumber: Eeeee, secara, eee, saya gak bisa me, me, membedakan, eeee, beanya atau cukainya, tapi secara organisasinya adalah bea cukai menjaga, eeeee, kepabeanan Indonesia, jangan sampe ada barang masuk tapi tidak bayar pajak, atau bayar pajaknya tidak sesuai. Jadi misalkan, eeee, mas beli handphone dari, eeeee, sana, harganya, eeee, berapa, 500 US Dollar, tapi di deklarasi PIB (Pemberitahuan Impor Barang) nya 200, itukan berbohong, itu gak bisa, bea cukai akan mengatakan itu 500

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harganya. Kalau organisasi mereka, itu urusan mereka.Saya: Tarif ekspor impor Indonesia dengan luar negeri secara umum

berdasarkan kuantitas barang? Narasumber: Seperti saya bilang tadi, ekspor itu tidak ada. Ekspor tidak

ada kecuali produk tambang dan CPO, Crude Palm Oil.Saya: Apa kendala yang ada terhadap kegiatan penentuan tarif bea cukai

yang terjadi beberapa tahun belakangan ini? Penentuannya, dan bagaimana cara mengatasinya>?

Narasumber: Owh, ini bilateral ya, ohhhh. Saya tidak tahu persis karena yang menghadapi itu adalah eeeee, importir, yang bisa ngasih jawaban itu importir, pemilik barang disini, maupun pemilik barang disana, di Brunei. Kalau kita ekspor ke Brunei, yang, eee, bisa kasih pendapat itu adalah pengusaha di Brunei, regulasi apa ini yang di Indonesia yang menyulitkan sehingga ekspor ke Brunei susah, atau sebaliknya, Indonesia mau impor barang dari Brunei, dia bisa sampaikan, eee, regulasi pemerintah apa yang menyulitkan dia sehingga barang dari Brunei susah masuk ke sini. Saya gak bisa, karena fungsinya saya itu disini hanya di logistik nya,di logistiknya bukan, bukan pengusaha di eeee, itunya. Kalau dalam pengurusannya, ya saya belum tahu persis karena say belum pernah bertransaksi dengan Brunei ya, regulasi di Brunei seperti apa, tapi setahu saya sih.

Saya: E, nah ini, bukan Brunei secara khusus, ini penentuan tarifnya saja, eeee, bea cukai tadi?

Narasumber: Gini, bea cukai itu bukan penentu tarif. Gini, eeee, ini beside untuk masalah eeee, customnya sama handlingnya ya, kalau customnya itu, seperti saya bilang tadi, bea cukai itu cuma penjaga pintu, baik ekspor maupun impor. Menentukan berapa besarannya untuk impor, bea masuk berapa, PPN berapa, aaaa, PPH berapa, itu yang eee, bik, yang punya, yang bikin buku postalit nya pemerintah, dalam hal ini

Interview at Kedutaan Besar Republik Indonesia, Brunei Darussalam

Interview with Praktisi Logistik Ekspor Impor

205

departemen perdagangan, bisa masukan juga dari bea cukai, karena buku bea masuk tarif itu keluarnya dari buku tebal itu, keluarnya dari perdagangan, HS Code (Harmonized Commodity Description and Coding System). Nah, tugas bea cukai cuman melihat HS Code itu, HS Code bea masuk berapa, PPN berapa, segala macem. Kalau masalah itu, yang ininya lebih kepada perdagangan. Tapi masalah handlingnya, gak bisa kepada bea cukai, karena bea cukai tidak mengurusi handlingnya, handlingnya itu kepada pelabuhan Tanjung Priok, cepat atau tidak, ya sejauh ini yang saya liat sih, gak ada yang lama di Pelabuhan.

Saya: Artinya, secara simpel, kendalanya adalah, kalau misalkan pebisnis yang ada di negara tersebut gak ngelakuin regulasi yang ada.

Narasumber: Artinya, mau di negara manapun, kalau regulasinya gak dipenuhi, pasti dia bermasalah.

Saya: Dan cara mengatasinya? Artinya tidak...Narasumber: Ya, harus dipenuhi regulasinya.Saya: Harus ditahan begitu, produknya?Narasumber: Eeeee, cara mengatasinya dari sis bea cukai? (Saya: Iya)

Lah iya, pokoknya bea cukai itu cuman simpel, satu, regulasi tidak dipenuhi, dia gak bisa layani, gak bisa dilayani, artinya barang tertahan (Saya: bahkan disuruh pulang?) Tertahan saja di pelabuhan.

A. Gallery

Interview at Kantor Pengawasan dan Pelayanan Bea dan Cukai Madiun

Interview at Pelabuhan Tanjung Priok