For more than 5 years, Indonesia Services Dialogue (ISD) has served as Indonesia’s leading council for services sectors. ISD has brought together Indonesia’s leading firms, professional business associations, and academicians with various topics of discussions in various forum.
From 2013—2014, ISD has held five Public Forum and two policy workshops with representations of services stakeholders. ISD’s mission is “Promoting Growth and Greater Efficiency of Indonesia Services Sector” through dialogues to facilitate stakeholders from coalition of businesses with partnership with the Government of Indonesia and Research Institutions.
Indonesia Services Dialogue serves as an umbrella organization designed to strategically represent the voice and bring together service firms and services associations, with the consultative support from the Government as well as research institution on policy, regulatory, and export issues of interest.
ISD provides forum for dialogues for its members from different service sectors such as accounting, management & human resources consulting, legal, financial services, hospitality, logistics, maritime, transportation (air and sea), ICT, environmental services, construction and engineering services, and many others. Services-users such as manufacturing companies as well as natural resources companies are also engaged to voice their input as the services users to obtain higher quality services with better efficiency. ISD has offered potential members from different service users sectors such as oil & gas, agriculture-tobacco, palm oil,retail industry, furniture store, tire manufacturing, mining & mining services, and others.
A high level Board and members, supported by executive office which is staffed by competent professionals, have been legally established to collaborate with its constituency to define priorities and articulate those to Government officials in trade and commercial ministries, regulatory agencies, and the legislature.
As a coalition, ISD draws together business experience in domestic and in certain cases foreign markets to develop commercially valuable regulatory enhancements, trade negotiating, and export policy objectives. ISD also helps to provide relevant information and research studies to its membership on trade policy and regulatory issues in services talks.
Development of the services sectors is critical to Indonesia’s growth and competitiveness as it facilitates and generates high quality employment for the future. Indonesia Services Dialogue is committed to raising the profile of the entire services sector and advocating for sustainable policy responses that drive innovation, growth, and efficiency. Service industries are a major source of innovation and provide essential infrastructure to trade in goods. They are critical to improving the economies of developing countries such as Indonesia. Services are the main driver of Indonesia’s economic growth and job creation
Services are the largest contributor of value added economy whereas direct contribution of services to GDP has increased over time – from 45% in 2000 to 55% in 2017 (BPS 2018). Between 1984—2008, the growth of Services Sector manifested into about 80% of rural poverty reduction and 86% of urban poverty reduction (SMERU 2010).
Thus, services sector supports:
- 8 out of 10 people who are successful to move out from poverty line in the rural level;
- 9 out 10 people who are successful to move out from poverty line in the urban level.
The contribution of services in Indonesian trade is much greater when embodied. Services employment share to other sector has increased over time – from 39% in 2000 to 55% in 2017 (BPS 2018). About 38% of services sector production is intermediate demand from other production sectors. Only 60% final product from services sectors is directly consumed by end consumers (AIPEG 2013).
Services sector absorb 23% services sector production to be utilized by their own activities, whilst manufacturing sector is utilizing an average of 10% output from services sector. As an intermediate input (i.e. goods and services procured by the firm), the share of services is 31.55% (AIPEG 2013). As a share of total inputs (i.e. intermediate plus primary inputs such as the labor and capital directly employed by the firm), services account for 16%.
Services play an important role in enabling the growth and transformation of the economy through critical inter-sectoral linkages. Services domestic barriers and restrictions are holding back growth and reducing competitiveness, thus removing services restrictions is a proven strategy to boost growth in Indonesia where less restrictions in the services sectors and more open services trade and investment will lead to efficient services but the benefits are not automatic. Efficient and high quality services will boost exports of services creating a virtuous cycle.
To become Indonesia’s and Asia Pacific Region’s leading council on services sectors
- Facilitating stakeholders to promote growth and greater efficiency in the Indonesian Services Sector through coalition of businesses and partnership with the Government of Indonesia and research institutions.
- Enhancing Indonesia’s domestic and international efficiency and competitiveness in the services sectors.
- Empowering stakeholders in services sectors to tap into new opportunities.
- Providing research and information for services sectors in Indonesia.
- Strengthening members and stakeholders with updated information and state-of-the-art development in services sectors.
- Providing strategic and integrated approach to the services sectors development in Indonesia;
- Providing inclusive dialogue forum for private sectors, government institutions and other participants in the services sectors;
- Fostering new evidence-based economic researches on the services sectors;
- Providing concrete input to Indonesian Government in the area of trade in services and investment in services;
- Establishing an institution in Indonesia with domestic and international networking outreach;
- Providing services information and research publications to members and related stakeholders.
- ISD Annual Services Summit to promote ISD activities and recommendation consolidated from Roundtable and Dialogue Series.
- ISD Public Forum and Roundtable Dialogue to engage prominent speakers, Ministers, and to address strategy and cross-sectoral programs (twice a year).
- ISD Dialogue Series to discuss services-related issues including regulations, challenges, and global services trends (monthly).
- ISD Policy Research to facilitate constructive input based on actual data to promote efficiency in services sector and services-related sectors.
- Executive Luncheons to facilitate small, closed door, and high level avenues for Board Members and CEOs to meet Indonesian Government, visiting overseas Ministers, and visiting executives.
- Private Sector Consultations to assist businesses with various issues they face and communicate those issues to regulators and research institutions.
- ISD Outreach to engage partners, media, investors, and services organizations, as well as to build coalition with organizations in Indonesia and international players.
Asia-Pacific Services Coalition
The Asia-Pacific Services Coalition (APSC) is a group of major business associations from the Asia-Pacific region that are dedicated to promoting the importance of the services sector. The collective goal is to work with businesses and governments to foster growth and efficiency in the services sectors through increased trade and investment, greater innovation and skills development, and pro-growth regulation in all Asia-Pacific Economic Cooperation (APEC) economies.
The Asia-Pacific Services Coalition most recently met in Kuala Lumpur in October 2017. The Asia Pacific Services Symposium took place October 2—3, and including panels and speakers on topics including e-Commerce, regulatory practices, digital trade, free flow of data and prohibition of data localization, and the many ways services enable other sectors of economies to flourish. The APSC also met in Beijing in May 2016 on the outskirts of the 2016 China Beijing International Fair for Trade in Services (CIFTIS).