Trade War Impact On Indonesia

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. 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.

Trump Trade War The Real Impact On The Economy

The research methods is eksplorative qualitative method.

Trade war impact on indonesia. According to Darmin every policy must have a negative and positive impact. One irony is that Indonesia has no significant export manufacturing business setting it aside from neighbors like Malaysia Thailand and Vietnam that are coming out ahead on the trade war. While earlier US tariffs focused mostly on industrial goods the new list of proposed import tariffs includes various commodities metals energy and agriculture.

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. Trade War United States China Indonesia Foreign Policy International Trade Protection Tariff GSP. The Impact of Trade War for Indonesia The biggest concern of Indonesia regarding the US-China trade war is Indonesian market will flood with Chinese or American products.

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. As the United States and China the worlds two largest economies are locked in a trade spat through mutual slapping of tariffs Indonesia looks set to be dragged into what may escalate into a global trade war. Therefore it is not surprising that this intense trade war has induced changes of the trade climate in Indonesia as well.

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On the other hand Indonesia would be difficult to earn advantages from the trade war because of its position. So the impact to Indonesia is not always negative Darmin said in Jakarta not long ago. This research aimed to explain the impact of United State-China trade war toward Indonesia in 2018.

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. 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. 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.

And China considering the country did not directly participate in the global supply chain. By now everyone has known that the continuous trade war between the US and China has a tremendous impact on the worlds economy. Indonesia has done nothing to prepare itself for that shift and the trade war has further exposed Indonesias industrial policy as a risk if there is no reform said Edward Gustely.

This growth is still relatively good although slowing compared to the previous quarter. For Indonesia the positive impact is can get cheap goods from China. This will have impacts on our exports but the severity of the impact on our economic growth will also depend on our imports he added.

TEMPOCO Jakarta – Finance Minister Sri Mulyani Indrawati said Indonesia was not significantly affected by the trade war between the US. Another impact of the US-China trade war is the pressure of the Indonesian economy and the decline in primary commodity prices affect investment and import performance. The advent of the currency war has impacted Indonesian financial markets with the value of the rupiah dropping more than 2 per cent since the trade negotiations earlier this month.

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That is if China choose to divert concentration of market expansion of its products from US to Indonesia. 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. As the trade war goes on and weakens the economy of China which remains Indonesias largest trade partner it led to a 2085 billion deficit on Indonesias side as imports jumped 285.

In 2018 Indonesias exports were valued at US180. 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. The US-China trade war could offer Indonesia a chance to benefit from shifting global production chains Indonesian Vice-President Jusuf Kalla said on Tuesday.

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