Food Security: Merkentilisme as a filter for Indonesian Government of Food Imports

Written by : Lia Dahliasari

NIM 1701344163

blogspot.com

I just bought rice from the supermarket nearby my rented room. I wonder that most of them are imported from other countries. The imported foods are sale at supermarkets, but also at street markets. I thought about free trade and its impact to Indonesia, including the effect of free trade on agriculture and food security in Indonesia. How Indonesia can compete in a free trade while Indonesia to import food to supply food needs? It is interesting to discuss. Rice is the staple food of Indonesian. Indonesia imported food staples. It seems that, Indonesia should be oriented to the mercantilism view that seeks to export production materials state by pressing imported foreign products.

Indonesia is a country with abundant natural resources, fertile soil, and the potential to be an agricultural country that can compete with other countries. However, the fact, Indonesia is the importer and more 'likes' with foreign products. Indonesia do not get sufficient food needs, it affects food security in Indonesia.

Food Security, according to the World Health Organization is comprised of three main components, such as food availability, food access, and food utilization. Food availability is the ability to have enough food for a number of basic needs. Access to food is the ability to have the resources, both economically and physically, to get nutritious food. Utilization of food is the ability to utilize food properly and precisely in proportion.

Indonesian state has an important role as food producers in the world. Indonesia is the world's third largest rice producer after China and India. Indonesia's contribution to global rice production by 8.5% or 51 million tons. China and India as major producers of rice contributed 54%. Vietnam and Thailand are traditionally a rice exporting countries only contributed 5.4% and 3.9%. (source: BPS).

In agriculture, Indonesia has tremendous agricultural potential; Palm oil, rubber, and cocoa production of Indonesia moved dominate the world market. However, in the context of food production, almost every year Indonesia has always problem with the supply of rice. Indonesian rice production was so high that can’t supply the needs of the population, consequently Indonesia still has to import rice from countries like Vietnam, Thailand, India, Pakistan, and Myanmar.
Based on Central Bureau of Statistics (BPS) 2013 During the Vietnam became the largest supplier of imported rice in Indonesia. Of the total 472 thousand tons of rice worth U.S. $ 246 million were imported, Vietnam dominates and send as many as 171 286 tons, worth U.S. $ 97.3 million. Import rice from Vietnam accounted for 36.3 percent of total Indonesian rice imports last year. Thailand in the second level with sending 194 633 tonnes of rice worth U.S. $ 61.7 million. While India in order to export 107 538 tonnes of rice as the third supplier country worth U.S. $ 44.9 million to Indonesia. Pakistan imported 75 813 tonnes of rice worth U.S. $ 29.9 million. Myanmar as well as in the order of the number of 18,450 tons or U.S. $ 6.5 million.

The reasons why Indonesia supposed to import rices that Indonesian population consume 154 kg per person/year. Compare this with the consumption in China is only 90 kg, 74 kg India, Thailand 100 kg, and 100 kg of Philippine. This resulted in Indonesia's rice needs be supplied if only relying on domestic production.

Then the climate is affecting the process of plant, determine seed, and fertilizer use. Not to mention the existence of a natural disaster. Ultimately results in decreased food production.
In addition to household consumption of rice is high and the climate, agricultural land is getting narrower. The transfer of the functions of agricultural land into non-agricultural land.

The dependence on imported raw materials of food due to the high cost of transportation in Indonesia, which reached 34 cents per kilometer. If we compare with Thailand, China, and Vietnam, an average of 22 cents per kilometer. Government policies also play a role in determining whether import or not to other countries; such liberalization.

 Liberalization of agricultural trade is determined by free trade (1995, Agreement on Agriculture, WTO), its caused by the policies and practices of food to hand over the affairs of the market (1998, IMF Letter of Intent), a result state into free trade henchmen. Domestic subsidy to Indonesian farmers continue to decrease (land, irrigation, fertilizers, seeds, technology and price incentives). On the other hand, the export subsidy of food by overproduction countries like U.S. and the European Union and its companies actually increased. Indonesia flooded by cheaper food items, so that the market price of Indonesia domestic destroyed. This makes Indonesian farmers unable to compete in the International trade. And, free trade gives bad impact for the system of Indonesian agriculture. THe liberalization of the Indonesian policy system depends on international markets (prices and commodity trends). Indonesia no longer act as exporters, but importers for its food staples.

Actually rice import policy can also be a challenge for farmers to improve rice production and quality.  The farmers are required to produce not just rely on the quantity but also the quality. Obviously this is a bit difficult in the absence of government support. This is due to the relatively underdeveloped local farmers from foreign farmers, especially in technology. The government must give assurance market as an opportunity to invite farmers to plant commodity crops spicy.

By regulating the marketing of rice so the price remains low, the government actually pressed farmers unfairly. Although successive leaders promising agricultural development with a variety of terms and programs, no rice problem eventually. President who floated the idea to revitalize agriculture, for example, until now not clear whether in the agricultural sector is being revitalized and capable to control the welfare of farmers.

From the experience of developed countries that subsidize agriculture on a large scale, the lessons that can be drawn based monoculture of paddy (rice) farmers will never prosper.
It is time for a political end to cheaper rice’s prices to encourage sustainable agricultural development while its expanding diversification of processed food products to guard strengthening food sovereignty in order to break the chain of imported rice.

blogspot.com

Based on mercantilism, Indonesia should strive to improve the quality and quantity of food products in the country and reduce food imports. If this happens, the natural resources and fertile land can be used with either. The efforts that  government can do to reduce imports to fix the price of basic foods that give the benefit for farmers and consumers, not to depend on international prices. Food controlled by the state and used for the welfare of the people. Increase the technology to support agriculture, farmers incentives for food commodities, especially seeds, fertilizers, technology and purchasing certainty. Because basically, every country should try to improve food security in the country and reduce dependence on foreign products. However, free trade can not be avoided, but to be faced with a wise and smart way. 

Sorces :

http://www.tempo.co/read/news/2014/02/05/090551264/Tahun-lalu-Indonesia-Impor-Beras-dari-Lima-Negara

http://www.tempo.co/topik/masalah/66/Impor-Beras

http://economy.okezone.com/read/2014/02/26/279/946645/beras-impor-dan-kegagalan-revitalisasi-pertanian/large

http://finance.detik.com/read/2014/02/05/072006/2487498/4/selain-vietnam-ri-juga-banyak-impor-beras-dari-negara-negara-ini

https://www.facebook.com/PRFMNewsChannel/posts/272228506242085

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Lithuania Changes Litas to Euro by the next January 2015

Written by : Lia Dahliasari

NIM : 1701344163

European Union (blogspot.com)

Lithuania is an ex-soviet’s country and newly independent in 1990. As the new state; Lithuania needs recognition of sovereignty from another country. Lithuania decided to join the European Union. The ideology of Lithuania is liberal democracy. The economic cooperation by European union prefixed to the signing and ratification of free trade treaty in 1994. The important qualified being member of the European union are good and stable economy. Lithuania has capable of these requirements. Even Lithuania called as Baltic tiger, as countries on the Baltic which is located in the region of northwestern Europe experienced a good economic growth. It is a result of economic reform and liberalization since 2000. Lithuania's gross domestic product is 7.5%. Lithuania has become the highest economic growth country in Europe, together with Latvia and Estonia. The unemployment rate is a little below the EU averages. It's what makes Lithuania is able to join the European Union. In 1995, Lithuania signed an association agreement with the European Union. 

Lithuania's effort to join the European Union:

1. December 8, 1995, the President of Lithuania, Algirdas Brazauska and Prime Minister Adolfas Slelevicius was sending requirement file to EU President.

2. September 5, 2001. The European Parliament Resolution has given Lithuania about requirement file to be member of the European Union.

The condition of being member of the European union according to Copenhagen criteria:

·      In political aspect, the country has stable institutions which guarantee democracy, the supremacy of law and human rights;

·      In economical aspect, the country has a functioning market economy and can cope with competitive pressure and market forces within the EU; by law the country obey the laws and practices the established of European union esp. main objectives, about a political union economic and monetary after Lithuania claimed that its could qualify the Copenhagen criteria by way of. In 2003 dated 16 April in Athens, signed the agreement that Lithuania was a member of the European union. In the earlier on august 10 and 11 may 2003, the referendum held in Lithuania about Lithuania’s motivation to join into European union with 90 percent of its inhabitants agree. Finally, on 1 November 2004, Lithuania officially became a member of the European union.

Each policy certainly has a reason. The European Union has a strong reason to accept Lithuania as a member of the European Union. Lithuania could become a target market expansion. This is the motivation of EU accepts Lithuania became a member. Because as an Organization that focused on the economic sector, the market is the most urgent, other than as a source of raw materials as well for buying and selling products.

Essentially, the EU wants to expand the membership and select the state that is appropriate and beneficial to become a member, so that the entry of Lithuania into one of the EU's development standards.

Lithuania's election as member of the European Union, Lithuania hasn’t use euro as a currency. During 2004 till now, Lithuania still using their country's currency  which named Litas. The Euro is the currency used the area of ​​Europe that members of the European Union. The countries that use the euro currency in Eurozone are Austria, Netherlands, Belgium, Estonia, Finland, Ireland, Italy, Germany, Luxemburg, Malta, Portugal, France, Cyprus, Slovenia, Slovakia, Spain, Greece, and Latvia joined in early 2014. If Lithuania wants to replace its currency into euro, Lithuania must obtain approval from the Commission of the European Communities.

Commission of the European Communities is one of the three main institutions that govern the European Union, the European Parliament and the Council of the European Union. The primary role of the European Commission is to propose and implement legislation, and acts as a guardian of agreement which provided the legal basis for the EU. The role of the European Commission has much in common with the executive branch of the government of a state, although it also has some differences.

Lithuania got the green light from the European Commission and the European Central Bank to adopt the Euro, because Lithuania is planning to increase spending on social security and national defense amid rising tensions with Russia. Lithuania deemed to have qualified all the criteria for adopting the euro and proposes to begin doing so by January 1, 2015. The official decision on that is likely to be issued in the EU Council of Ministers in July 2014.

Lithuania previous efforts to join the Eurozone had failed after rising inflation and not in accordance with the terms specified. Like the other Baltic countries; Estonia and Latvia, a country of about 3 million people experience a sharp economic downturn amid the global financial crisis that began in 2008. Estonia joined the Eurozone in 2011, followed by Latvia in 2014. Use the Euro currency in the Baltic seen as a step to deepen alliance with the region of the Western.

To be able to use the euro, a country must have no more government debt 60% of GDP, inflation and low interest rates, and currency must be stable to euro. In his press conference, Commissioner of the European Economic and Monetary Union, Olli Rehn, an inflation rate in Lithuania by 1.1% in 2014 and 1.8 to 1.9% by 2015. Lithuanian Central Bank estimates using the euro, they might  lost about 2 billion Litas when borrowed funds during the financial crisis.

Seven EU countries that use the euro haven’t been considered yet qualified, such as Bulgaria, Czech, Croatia, Hungary, Poland, Romania, and Sweden. Romania has said that the target for used of euro in 2019.

Meanwhile, the President of Lithuania, Dalia Grybauskaite, said that the adoption of the Euro in January 2015 is expected to attract investments to Lithuania and helps reduce the borrowing cost. With this decision, the Lithuanian will start using the euro in January 2015 as the 19th state.

The economic cooperation between European Union and the role of the euro currency in Eurozone has facilitates the economic transactions for every country. As Adam Smith note, “The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state. The expense of government to the individuals of a great nation is like the expense of management to the joint tenants of a great estate, who are all obliged to contribute in proportion to their respective interests in the estate. In the observation or neglect of this maxim consists what is called the equality or inequality of taxation,” quoted in his book "The Wealth of Nations". We can conclude that in international trade that occurs between Lithuania and EU countries, require facilities and conveniences for the transaction. These activities should protect by law, so that every country does not act arbitrarily. And that is the function of the European Union for Lithuania.

Litas (Lithuani's Currency) blogspot.com

Euro (Eurozone in European Union) blogspot.com

Sources:

http://europa.eu/rapid/press-release_SPEECH-14-425_en.htm

http://lampost.co/berita/latvia-ganti-mata-uang-ke-euro

http://www.monexnews.com/world-economy/lithuania-mendapat-sinyal-lampu-hijau-untuk-mengadopsi-euro.htm 

 

http://www.aishanews.com/20140604917/januari-2015-lithuania-gunakan-mata-uang-euro/

http://www.bbc.co.uk/indonesia/majalah/2014/06/140604_uni_eropa_lithuania.shtml

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Morgentau and E.H.Carr: Economic Sanctions against Palestine by Israel

Written by : Lia Dahliasari

NIM : 1701344163

Lets talk about realist and its relations with Israel-Palestine’s conflict. Before that, we should know about two realist thinkers, Morgenthau and E.H.Carr. Morgenthau is a structural realist, his thought that states will be more concerned with its own interests when it counts the tendency stance on an international economic negotiations. And E.H.Carr as realist historicist emphasis on state behavior when its under pressure from other countries. He considers that the country will avoid the threat of other countries because it can interfere with the domestic economy. In order to avoid the threat of another country then it needs to be a regulatory body for the country's economic norm. With the approval of the norm by all nations become more secure economic security. Basically, the realist view that the main actors in the political economy is the dominant state. Other actors such as MNCs, and NGOs, or other institutions deemed not play an important role. They are all run by the state and can not walk alone.For realists, the most important issue is how to regulate the affairs of the state in international political economy (Watson, 2008:34). It's referred as outward - looking. 

Before I explain about realism and its relation to the economy, I would like to write the interest of the Israeli-Palestinian's conflict. I pay attention to both countries, which concerns the conflict 'inexhaustible'. Regardless of religion-based disputes, conflicts between both country in the modern era began after World War 2 and the Nazi genocide against the Jews. When the Jewish concentration camps liberated, a thousands of Jews who need a place to stay flocked en mass to Palestine when the population is predominantly Arab. The conflicts began to break up and tried to mediate by asking the UN Partition Plan of Palestine into two separate states, one for each of Arabs and Jews in Jerusalem as a neutral region under UN supervision. On May 14, 1948 the Jews declared independence at the same time establishing the state of Israel. The next day, Egypt, Syria, Lebanon, and Iran attacked Israel which marks the beginning of the Arab-Israeli War. 

A year later enacted temporary truce and borders set. Jordan took over the West Bank and East Jerusalem, while Egypt controls the Gaza Strip. The next problem emerged in 1956 when the Suez Canal crisis, when Israel helped by Spain and Britain invaded the Sinai Peninsula. In 1966, Israel's relations with the Arab world led to the worsening outbreak of the Six Day War in 1967. 

After war, Israel took over the Gaza Strip and Sinai Peninsula from Egypt, the West Bank and East Jerusalem from Jordan and the Golan Heights from Syria. Six years later, the Yom Kippur War broke out and Israel's relations with the Arab countries worsened. In 1988, the Palestine Liberation Organization (PLO) declared the establishment of a Palestinian state, but they weren't in control of Palestinian territories. Since then, the PLO continues fight for the independence of Palestine based on the borders that once set in 1967. Currently, the Arab League, and most of the countries in South America, Africa, and Asia recognize a Palestinian state. The conflict between Palestinians and Israelis find a bright spot in the presence of a truce.The ceasefire came into effect from 21 November 2012 until an undetermined time. Egyptian President Mohammed Mursi became the most credit for the establishment of the ceasefire agreement. 

Palestinians particularly like to welcome a ceasefire agreement with the down to the street. The contents of the ceasefire agreement is for Israel to "stop all atrocities on land, sea, and air, including incursions and targeting of individuals." Palestinian factions must also stop "rocket attacks and all attacks along the border." The another contents on the deal is Israel going to open all crossings into Gaza so that the goods can enter Gaza. 

After the ceasefire, the military conflict between the two countries eased. However, this time both countries  being heats because Palestine joined the Vienna Convention 13. Starting from the Special Envoy of the United Nations on Middle East peace, Robert Serry, who has received a request from Palestinian officials to join the 13 international conventions and agreements. These treaties include the Vienna Convention on diplomatic relations, child rights convention, the convention against torture, and the convention against corruption. This request has been formally accepted in the UN headquarters. The demand came as peace talks between the Palestinians and Israelis closer to failure, and Israel make a new bid to expand settlements in annexed Arab east Jerusalem and Palestine took fresh steps towards state recognition effort their promised. 

Palestinians have pledged not to cooperate as members in the UN organizations during peace talks with Israel, on condition that release of the prisoners’ veterans by  Israeli. Palestine also has asked Switzerland to join the Fourth Geneva Convention of August 1949 and the first additional protocol. Palestinians asked the Netherlands to join the 1907 Hague Convention on the laws and customs governing the war. The entry of Palestinians in the Geneva Convention would be effective because Palestinians under occupation. Switzerland announced the Palestinian Authority signed the Geneva Convention and set rules on war and humanitarian operations in conflict zones. 

The colonial regime of al-Quds Israel threatened to impose new economic sanctions to Palestinians, in retaliation for the signing of a number of international treaties. It is the diplomatic efforts of Palestinian President Mahmoud Abbas failed peace talks with Israel. Abbas said that he had received a letter from the president of Switzerland that ensure of registration. Palestine determined to apply for membership in various UN organizations and international conventions.

The economic sanctions carried out by Israel against the Palestinians is:

1.    The transfer tax revenues collected on behalf of the Palestinian authorities will be frozen, and the access is restricted bank deposits in Israel.

2.    The temporary agreement between Israel and Palestinian state that Israel collects taxes on behalf of the Palestinians and distribute approximately U.S. $ 100 million / month.

3.    Without these funds, the Palestinian authority won’t be able to pay the salaries of tens of thousands of employees.

Israel has also been decided to suspend its participation in developing the gas field from Gaza Strip. Israeli Prime Minister, Benjamin Netanyahu has ordered government offices to stop cooperation with the PNA. Palestinian Labor Minister, Ahmad Majdalani called the Israeli decision isn’t legitimate and is a political move, not economic. The Jerusalem resumed peace talks without progress. The State Department said the United States has problems between both country is reduced. A spokesman for the U.S. State Department said it’s still too early to tell whether the negotiations will take place or not. 

 

Palestinian Foreign Minister, Riyad al-Malki, criticized the Israeli government's decision imposing economic sanctions against the Palestinian National Authority (PNA). According to him, it gives bad affects for peaceful efforts of both country. Israel should stop violating international law. However, al-Maliki stressed that the PNA will continue its efforts to join UN agencies. Palestinian President, Mahmoud Abbas, has also signed a document request to join the 15 UN agencies. If Israel's economic sanctions against the Palestinian Authority (PNA), they may stop security cooperation with Israel.

In that case, we can analize that Israeli-Palestinian’s problems repeated. Although the conflict didn’t use a weapon as before, but still, the conflict took place, through economic sanctions proposed Israel to the Palestinians. The realists who said that repetition of history. And these conflicts affect the economy of each country. Both country have different reasons in running the international cooperation.

We can conclude that the Palestinians carry out international cooperation efforts with the United Nations, as a form of defend themselves from threat of other countries. In accordance with EH Carr thought, as a realist historicist emphasis on state behavior when under pressure from other countries. He considers that the country will avoid the threat of other countries because it can interfere with the domestic economy. In order to avoid the threat of another country, then it needs to be a regulatory body for the country's economic norm. With the approval of the norm by all nations become more secure economic security. 

Palestinians get involved with the international treaties of peace with Israel because of the efforts have yet to find a bright spot. Meanwhile, the Palestinians need to maintain domestic political economy from the threat of other countries.

Then, the state of Israel as a 'stronger' than the Palestinians, efforts provide the economic sanctions, as Morgenthau said about his realist’s thought. He is a structural realist thought that states would be more concerned with its own interests when it counts the tendency stance on an international economic negotiations. Israel has an interest to Palestine and Israel don’t agree with efforts of Palestine to join the various International treaties.

Sources:
http://www.republika.co.id/berita/internasional/palestina-israel/14/04/03/n3flta-palestina-bergabung-dengan-perjanjian-internasional

http://www.bbc.co.uk/indonesia/dunia/2014/04/140411_palestina_jenewa.shtml

http://www.jpost.com/Diplomacy-and-Politics/Abbas-Israel-has-procrastinated-enough-signs-document-to-join-UN-agencies-unilaterally-347193

http://uk.reuters.com/article/2014/04/11/uk-palestinian-israel-annexation-idUKBREA391HA20140411

http://www.bbc.co.uk/indonesia/dunia/2014/04/140410_israel_palestina_sanksi.shtml

http://www.business-standard.com/article/news-ians/palestinians-reject-israel-s-economic-sanctions-114041400054_1.html

http://www.republika.co.id/berita/internasional/palestina-israel/14/04/03/n3flta-palestina-bergabung-dengan-perjanjian-internasional

http://www.bbc.co.uk/indonesia/dunia/2014/04/140411_palestina_jenewa.shtml

http://www.jpost.com/Diplomacy-and-Politics/Abbas-Israel-has-procrastinated-enough-signs-document-to-join-UN-agencies-unilaterally-347193

http://uk.reuters.com/article/2014/04/11/uk-palestinian-israel-annexation-idUKBREA391HA20140411

http://www.bbc.co.uk/indonesia/dunia/2014/04/140410_israel_palestina_sanksi.shtml

http://www.business-standard.com/article/news-ians/palestinians-reject-israel-s-economic-sanctions-114041400054_1.html

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Small and Medium Enterprises is the begining for the successful of Alibaba.com

Oleh : Lia Dahliasari

NIM : 1701344163

Starting from my new hobby, purchase online from various online shop in Indonesia such as lazada.co.id, blibli.com, oxl.com, berniaga.com etc. I have an interest to find out whether other countries doing online shopping. Finally, I got the results of interesting information about a shop buying and selling online shop in China, namely Alibaba.com, encourage me to explain how Alibaba.com could be global market equal with Amazon from USA? Alibaba.com is an online company comes from China which is able to take the floor in the U.S. stock market and become a global online company.

Economic activity wouldn't be separated from the transaction between producers and consumers. Both parties will benefit in accordance with their respective goals. Along the development era buying and selling don't need to be done in the market or in the supermarket, but also can be done by online. The transactions can be done without bring together the sellers and buyers in one place. Because the transaction process easier and that happens to Alibaba.com, which is an online shop in China that managed to dominate the market in China, could even compete with Amazon. How the success of Alibaba.com? Before I am describing more about Alibaba.com, maybe you can visit the website Alibaba.com.

As in the fairy tale that tells the story of Alibaba, Alibaba tried to do what the robbers did when they open the door of the cave as a place to store loot of  the treasure thieves, he shouted, " Alakazam! Open  " then the cave door were open. The same case with these Alibaba.com. Once recites the mantra " Alakazam! Open, " the door of the second largest exporting country in the world opened.

Jack Ma, an English teacher in China saw a business opportunity promising e-commerce , although at the time it wasn't too famous online shop system. Starting from a seedy apartment in 1999, Alibaba constructed. By the time, participants have been consisting of 28 members of the partnership for making Alibaba.com grow rapidly. Alibaba.com managed to become an online shop in China with 231 million active transaction participants; local and foreign.

"Small is beautiful. SMEs provide an engine of economic growth in Asia and they are the future of e- commerce," saud CEO and founder of Alibaba.com, Jack Ma, at the APEC SME Summit in Singapore. Jack Ma revealed, financing mechanisms or support to SMEs is not maximized because there is no standard mechanism which can be used .Jack Ma argues that SMEs deserve attention because of all the big businesses started with small steps, "like a baby  everyone knows that this baby will grow up. All businesses will be successful because they are confident of success. They succeeded because it continues to keep the dream of magnitude. People can withstand a week without food, three days without a drink , but people would die if lost their hope in one minute," said Jack Ma.

Jack Ma's life journey after graduating from university, he is the only one of his class of 500 students assigned to be lecturer at the university. When the salary of Ma was 100-120 renminbi a month, equivalent to Rp 114,000 to Rp 142,500 per month. Jack Ma always dreamed of, after serving for five years devoted himself, he will start a hotel business or the other . 

"In 1992, China's economy has started to grow up, I applied a lot of jobs, but none have escaped. Eventually I became secretary general manager of Kentucky Fried Chicken , " said Jack Ma.
Jack Ma's friend show him the internet for the first time. When he searching for the word "beer" on the Yahoo search engine, he found the fact that there is no data about China. This made Jack Ma interested in set up a computer company even though he wasn't computer experts, by borrowed money 200 dollars to his relative, he ran the computer company. The company pioneered by Jack Ma compete with China Telecom for one year . Finally, China Telecom offers to invest to Jack Ma's companies of 185,000 U.S. dollars.

Unfortunately, Jack Ma gets only one board seat. For everything that he proposed rejected. Being a public company is also an important turning point. Alibaba.com managed to earn funds IPO of 1.7 billion U.S. dollars in Hong Kong Stock Exchange in November 2007. It was an initial public offering ( IPO), the largest Internet IPO since Google in the Nasdaq .Based on the IPO document, quoted by the BBC, on Thursday ( 08/05/2014 ), the value of all merchandise sold on the various platforms capable figure reached USD248 billion, with more than 11.3 billion requested. In addition, Alibaba claimed control of 72 percent of  e-commerce in China.Recon Analytics analyst Roger Entner said that Alibaba is able to defeat a similar company from America, the Amazon. According to the company e-commerce powerhouse Alibaba is a truly global scale. Once successful, Alibaba continues to corporate action  Alibaba will take the floor in the U.S. stock market, Wall Street, through the mechanism of an Initial Public Offering (IPO). All 28 partners were also offered a company that will take place in the long -term scale. The market participants expect that Alibaba could gain success in the domestic market to global stock markets. Analysts said that it is likely interest in this IPO as investors expect the company to replicate the success that occurs in China , on a global scale . 

Alibaba able to generate revenue of more than 40.5 billion yuan, equivalent to $ 6,5 billion in the nine months ended of December 2013, and a net profit of $ 2, 9 billion . 

McKinsey as a Global Institute predicts that, by 2020 online retail sales in China will reach numbers in the range of USD420 - 650 billion. That number would match the U.S. market, Japanese, English, German, and French . 

Alibaba.com users have been reached 8 million and revenue continues to increase. Late last year Alibaba.com revenue rose 39 percent to 440 million U.S. dollars. Alibaba.com also provides that Aliexpress allowed consumers to order one unit of goods only .The successful of Alibaba.com as global market, based on SMEs. In this case an important role in economic activities is SMEs. The SMEs are able to penetrate the global market are able to compete in the free trade. Then, how about Indonesia? Is Indonesia still able to compete with other countries in the free trade? The answer is certainly NOT YET . The Small and Medium Entrepreneurs do not yet have a good ability to compete, the price of local products still high, the low quality goods, as well as the role of government in managing the SMEs is not optimal. Meanwhile  the banks still give credit loans big interest rates around 22 %, and it is the bottleneck of the development of SMEs. The Government should solve its problems. Because not all SMEs were able to survive in the competition, and when it happens , then it is the government can be relied upon to handle .

Sources :

http://economy.okezone.com/read/2014/05/07/22/981628/lahir-di-apartemen-kini-alibaba-mendunia

http://economy.okezone.com/read/2014/05/07/22/981649/kekayaan-bos-alibaba-naik-3x-lipat-berkat-ipo

http://economy.okezone.com/read/2007/11/06/21/58853/alibaba-com-perusahaan-online-terbesar-di-asia

http://economy.okezone.com/read/2014/05/08/213/981828/alibaba-ipo-harga-saham-yahoo-google-langsung-ambles

http://www.bpfnews.com/index.php/id/economy/89-united-states/3279-alibaba-ajukan-dokumen-untuk-lakukan-ipo-di-bursa-amerika

http://netpreneur.co.id/bagaimana-perusahaan-alibaba-com-mengalahkan-raksasa-ebay-di-cina/#.U2unLuj03ug

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