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Jakarta Post

How should Indonesia handle trade wars?

  • Andre Rahadian

    -

Jakarta   /   Fri, August 10, 2018   /  01:05 pm
How should Indonesia handle trade wars? A trade war between China and the United States would bring added uncertainty to the Indonesian economy. (Shutterstock/File)

A trade war between China and the United States would bring added uncertainty to the Indonesian economy. What is certain is that industrial power is very important for a country. On the one hand, during such a trade war, Indonesian industries would have an opportunity to fill gaps in the existing markets and maximize their exports. 

On the other hand, however, there would be risks posed by the obstruction to trade between the US and China, especially to exports from China to the US. With high import tariffs imposed by the US, Chinese producers will be pushed to find other markets to sell their products. 

Indonesia is obviously an attractive alternative market for Chinese goods, not only because Indonesia has historically been known as an open country, but also because of the Free Trade Agreement (FTA) between ASEAN and China, which gives special du...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.