This study aims to identify the impact of import duty exemption on aircraft spare parts on the competitiveness and service export of the Aircraft Maintenance, Reparation, and Overhaul (MRO) industry including factors affected MRO competitiveness. In addition, this study aims to identify the problems encountered during the implementation of the policy, the types of aircraft parts to be exempted and the criteria for products to be eligible for exemption from import duties. The method of this study used qualitative and quantitative descriptive analysis, Porter's five-force model and Analytical Hierarchy Process (AHP). The results of the study showed that the import duty exemption policy increased MRO services from 30 percent to 49 percent during 2013-2017. Constraints in implementation are procedures and differences in customs areas where the longest is for bonded zones. Special customs policies for MROs as well as the exemption of import duties for goods related to MROs which 90 percent originating from imports will greatly encourage competitiveness which relies heavily on aircraft down time. The types of goods that need to be exempted from import duties are consumable and repairable groups in both new and non-new capital goods categories.

Saudi Arabia is Indonesian trading partner with a total trade value in 2019 reached USD 5.07 billion. Indonesia's trade with Saudi Arabia contributed to a deficit in Indonesia's trade balance, from USD 1.36 billion in 2015 to USD 3.68 billion in 2018. Amid efforts to increase exports to Saudi Arabia, on May 27, 2020, Custom Saudi, has issued a policy of changing the rate of import duty on 37 tarif lines (HS 2 digit) with an increase to be in the range of 7% to 20% from the initial rate, which is in the range of 5% to 12%. This matter, of course, has potential effect on Indonesia's export penetration. This analysis aims to identify Indonesian export products that are affected by the increase in import duty rates in Saudi Arabia and analyze the impact of the increase in the import duty of Saudi Arabia and its implications for Indonesia's export performance. With the descriptive analysis method using secondary data of trade data sourced from the Central Bureau of Statistics and UN Comtrade, this study concluded that the increase in Saudi Arabia's import duties on Indonesia's main export products had an impact on several of Indonesia's main export products, namely paper products, iron and steel products, iron and steel, Man-made staple fibres, and Machinery. Meanwhile, other export products such as automotive, plastic product, Electrical machinery, palm oil, processed meat and fish products, and some textile products have no substantial impact. Therefore, to anticipate the impact on the penetration of Indonesian export products, the government needs to disseminate information to business actors, especially exporters whose products are subject to an increase in import duty in Saudi Arabia so that anticipatory steps can be taken as well as efforts to find alternative export destination markets  in other countries.

Indonesia's trade performance in 2018 experienced a deficit of USD 3,8 Billion, due to increasing of oil and gas imports. Countertrade scheme is proven as one way to improve the trade balance for country who experienced trade balance deficit through increasing on oil and gas exports channel. This study aims to identify the non-traditional trading partners as well as the products that are potential to be selected as non-oil and gas export destination for Indonesia through countertrade scheme. This study utilizes trade performance index and the composite index analysis using different criteria when applied to select country and products. The results show that there are six potential countries include Saudi Arabia, Nigeria, Qatar, Angola, Azerbaijan and the United Arab Emirates. On the product side, Electronic and coal are the common potential products to be proposed through countertrade scheme as that products are potential in all selected countries. There are another eight potential products for six countries that are selected, include machinery, jewelry, cigarettes, dairy products, processed fruits, mollusks, vegetable materials, automotive, synthetic rubber, processed oily grains, processed fruits, coffee beans, CPO and its derivatives, pearls, processed fats & animal or vegetable oils, ash and metal scraps, precious metals, rice, salt, and sulfur and lime.