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The Role Of Sovereign Wealth Fund And Regional Comprehensive Economic Partnership On Exports: Case Study Of Muslim Countries In Asean

Author

Listed:
  • Hendri Hermawan Adinugraha

    (State Islamic Institute of Pekalongan, Indonesia)

  • M Rizki Nurhuda

    (State Islamic Institute of Pekalongan, Indonesia)

  • Ria Kusumawati

    (State Islamic Institute of Pekalongan, Indonesia)

Abstract

The Regional Comprehensive Economic Partnership (RCEP) free trade agreement has been agreed by ASEAN countries with Australia, China, Japan, South Korea, and New Zealand at the virtual 37th ASEAN Summit. This has the opportunity to increase export activity to these countries so that Indonesia’s trade balance will be in a surplus, especially export activities to fellow ASEAN countries with Muslim populations. The purpose of this study is to test whether increasing Indonesia’s export activities to Muslim-populated countries in ASEAN can be used as an alternative funding facility for Indonesia’s Sovereign Wealth Fund (SWF), which will soon be formed by taking advantage of the momentum of the RCEP agreement, especially to increase economics growth during the Covid-19 pandemic. By using Multiple Linear Regression Analysis, the research concludes that the value of Indonesia’s exports to Muslim-populated countries in the ASEAN region affects the Indonesia-ASEAN Trade Balance with a strong correlation where Indonesia has experienced a surplus of export values in a row since February 2020. This shows that the Indonesian government must take advantage of the momentum of this free trade agreement to increase the surplus value so that it can be used as an alternative funding for the sovereign wealth fund which will be created by the Indonesian government since Law Number 11 of 2020 on Job Creation was promulgated on November 2, 2020 to contribute to recovering the Indonesian economy which had fallen due to the Covid-19 Pandemic.

Suggested Citation

  • Hendri Hermawan Adinugraha & M Rizki Nurhuda & Ria Kusumawati, 2021. "The Role Of Sovereign Wealth Fund And Regional Comprehensive Economic Partnership On Exports: Case Study Of Muslim Countries In Asean," Annals of the University of Craiova for Journalism, Communication and Management, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 7(1), pages 38-46, December.
    • Handle: RePEc:edt:aucjcm:v:7:y:2021:i:1:p:38-46
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    References listed on IDEAS

    as
    1. Carpantier, J.-F. & Vermeulen, W.N., 2018. "Emergence of sovereign wealth funds," Journal of Commodity Markets, Elsevier, vol. 11(C), pages 1-21.
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    More about this item

    Keywords

    Trade Balance; SWF; RCEP; ASEAN; Covid-19;
    All these keywords.

    JEL classification:

    • Z0 - Other Special Topics - - General

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