Wednesday, 11 July 2018 21:20

Bappenas Worries US Trade War - China Has Impact On Regional Economy

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Indonesia Development Forum 2018 Indonesia Development Forum 2018 VOI-REZHA

Indonesian Minister of National Development Planning / Head of National Development Planning Agency (Bappenas) Bambang Brodjonegoro is concerned that a US-led trade war will affect regional economic development in Indonesia. Because the impact of trade war has the potential to lead to an area with people who depend on the manufacturing industry, especially textiles. The reason is that textiles become one of the export goods that will be affected by the elimination of Generalized System of Preference (GSP) incentive by the US. This was stated by Bambang on the sidelines of Indonesia Development Forum (IDF) 2018 in Jakarta, Tuesday 10 July.

"How about the potential impact of a trade war? Yes we have to see what sectors are affected, possibly the manufacturing sector. Its manufacturing may be related to textiles. But it could also later if the United States challenges Indonesia regarding the products that currently have GSP (Generalized System of Preferences). Well of course this will also affect Indonesia's exports to the United States. If then we face obstacles from the United States but then we can divert our export products to other countries, then this is not a problem," Bambang Brodjonegoro said.

Furthermore, Bambang Brodjonegoro said Indonesia should still be prepared to face all possibilities of trade war between the US and China. One way that the Government of Indonesia can do is to increase competitiveness so that Indonesian export products can be diverted to other countries if Indonesia gets obstacles from the US related to export. In addition, it is also expected that negotiations by the Government of Indonesia with the US Government will continue to produce the best possible agreement for the interests of both parties. Last week, US President Donald Trump said he would evaluate 124 products or export commodities coming into the country. The US government plans to revoke the special tariffs or GSP incentives that it has from exported products from various countries, including Indonesia. (VOI / Rezha Hadyan/AHM)

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