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Establishing Well Functioning National Trade Facilitation Bodies (NTFBs)

In the OIC Member States

73

4.2.2.3.

Analysis

As for performance, it can be said that the Task Force has not established regularity on their

meetings. However, they are already putting together an official proposal for establishing an NTFB.

Members wish to organize a meeting once a week, with a minimum of once a month. The meetings

usually take place in Jakarta, led by the Ministry of Trade or the Ministry of Finance, depending on

the subject matter.

To keep stakeholders informed of the TF body’s meetings and new documents, upcoming events, and

all events related to TF topics, official letters/reports, emails, and phone calls are used.

The NTFBs’ meetings and topics are dealt in the official language, which in the case of Indonesia is

Bahasa Indonesia.

The fact of having an official organization for TF issues is a breakthrough in the country’s

development; however there are obstacles that must be addressed in order to ensure the creation of

an NTFB. In the case of Indonesia, the main obstacles are:

Frequent replacement of members: This does not allow for a continuous process of

improvement and decision-making as members do not have a constant participation in the

organization.

Structural hierarchy: It is necessary to establish levels of hierarchy for the entities that form

part of the NTFB.

Lack of involvement by the private sector: Due to the lack of an organization acting as a

leader within the private sector, this sector has not had much involvement in TF affairs.

Poor of knowledge about the subject of trade facilitation: This mainly applies to stakeholders

that have recently become involved. The main problem is in understanding the TF

agreement.

83,84,85

Main Achievements

The achievements of the Task Force of Indonesia are its existing strengths that will eventually

facilitate the implementation of an NTFB, including the fact that it has an institution with a strong

leadership, which is the Ministry of Coordinating Economic Affairs (KEMENKO).

Also, the organization is officially recognized by the government as a foundational body that

combines the basic elements for creating an NTFB.

4.2.2.4.

Conclusions and Recommendations

To handle situations often faced by organizations in the process of establishing an NTFB, the general

recommendations are as follows:

1.

To meet the factors established by the UNCTAD, which are: have well-defined objectives and

a defined scope of work; have a legal framework in place; institutionalize the TF body; meet

on a regular basis; establish concrete terms of reference, i.e. have a work plan; have a

83

Ibid

84

Mr. Theo Kumaat, op. cit.

85

Mr. Eddy. Rahardjo, op. cit.