Impact Of Trade War On Indonesia


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Basri confirmed that the global economy is currently at risk from a trade war between the United States and China.

Impact of trade war on indonesia. Meanwhile the indirect impact of the trade war is the value of Indonesias raw material exports to China that declined due to weak industrial production of the country. The biggest concern of Indonesia regarding the US-China trade war is Indonesian market will flood with Chinese or American products. In terms of direct impact the US-China trade war is creating uncertainties to global growth and in particular any decline in Chinas.

The event in Jakarta Indonesia brought together leading academics and practitioners to discuss how businesses and. The US-China trade war has rapidly escalated promising to disrupt trade flows between the two countries and beyond. This growth is still relatively good although slowing compared to the previous quarter.

That is if China choose to divert concentration of market expansion of its products from US to Indonesia. It also reflects the US view of the inadequcy of the WTO. The Global Trade War Has Kicked Off.

Indonesia posted a 967 billion surplus from its trade with the US in 2017 a 93 per cent increase in year-on-year calculation according to data from the Trade Ministry. Earlier this week US President Donald Trump announced plans to impose 10 percent import tariffs on USD 200 billion worth of Chinese export products by 30 August 2018 thus further escalating the trade war between the USA and China. And China considering the country did not directly participate in the global supply chain.

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Coordinating Economic Minister Darmin Nasution has stressed that the trade war between China and the United States has badly affected and will continue to affect Indonesias exports as both. Therefore it is not surprising that this intense trade war has induced changes of the trade climate in Indonesia as well. According to Darmin every policy must have a negative and positive impact.

Another impact of the USChina trade war is the pressure of the Indonesian economy and the decline in primary commodity prices affect investment and import performance. Indonesia is set to put in place counter-measures that mitigate the anticipated uncertainties caused by the trade war between the US and China which has hit investors confidence at home and put. A report by the ASEAN3 Macroeconomic Research Office AMRO released in May suggested the Southeast Asia region has become the main destination for investment relocation from China.

Indonesian textile garment and tire manufacturers are benefiting from the ongoing trade war between the United States and China leading to optimism that Southeast Asias largest economy may overcome global economic turbulence expected next year. In April 2017 the US administration put Indonesia on its trade watch list along with 15 countries as the former had suffered a significant deficit and aimed to step up its measures against trade imbalance. This column provides the first estimates of trade and investment effects of the trade war on East Asia one of the most exposed regions.

TEMPOCO Jakarta – Finance Minister Sri Mulyani Indrawati said Indonesia was not significantly affected by the trade war between the US. The IMF at the World Economic Outlook provided a projection of Indonesias economic growth of 51 percent in 2018 amid risks of global uncertainty due to the trade war. Sanny Iskandar deputy of regional economic development at the Chamber of Commerce Kadin said China may turn its eyes on Indonesia as a major export destination as they have lost the American market.

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TEMPOCO Jakarta – The ongoing trade war between the United States and China is estimated to affect trade climate in Indonesia. What happens with US-China trade war then. By combining trade and tariff data it provides some order of magnitude of the expected effects and identifies the possible.

While earlier US tariffs focused mostly on industrial. By now everyone has known that the continuous trade war between the US and China has a tremendous impact on the worlds economy. This is due to Chinese products that could not enter Americas market will automatically go to the other country and Indonesia is one of the countries that potentially being market targeted.

On the other hand Indonesia would be difficult to earn advantages from the trade war because of its position. For Indonesia the positive impact is can get cheap goods from China. Second there is recognition that the US-China trade war could potentially benefit the Indonesian economy through the relocation investments or expansion of factories in Indonesia away from China.

Negatively Indonesian businessmen will get many rivals if goods from China go into the country. Hence our effort aims to stabilize the domestic economy so it is not only exports but our domestic consumers can grow into new markets he added. Indonesia may still feel the impact of the trade war between the United States and China even though tensions between the two economic giants have cooled down following a meeting between US.

CABC invited members to attend the closed-door by-invitation only event organized by Lee Kuan Yew School of Public Policy.

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