Diversification of Exports Can Avoid Trade War Effect from U.S

   •    09 Maret 2018 15:55 WIB
export import
Diversification of Exports Can Avoid Trade War Effect from U.S
The National Development Planning Agency (Bappenas) head Bambang Brodjonegoro (Photo: Antara).

Jakarta: The diversification of Indonesia's export destination countries can be one of the keys to be unaffected by the trade war the United States tries to create.
 
The National Development Planning Agency (Bappenas) head Bambang Brodjonegoro said, the trade war is aiming at raising the US bargaining position in forums in which the US involved.
 
"Indonesia should be capable of navigating to the trade war, in particular we must diversify our export destinations, both the commodities and countries," Bambang explained in Jakarta on Friday.
 
Moreover, Indonesia must complete the 'homework' related to trade agreements with countries that actually have the potential to import more goods from Indonesia, meaning that the export is more facilitated, he continued.
 
In the international trade procedure, it is common if the government encourages the export of a country, the country can also ask for treatment for its country's export commodities.
 
"In my opinion, we can do well so we are not too affected by the trade war which we do not know whether it will happen or not," Bambang said.
 
The US government plans to set import tariff rates on steel products of 25 percent and aluminum of 10 percent. Such policy is considered potential to create a trade war because countries that have had trade relations will reply to each other in terms of tariffs.
 
Responding to such plan, the Indonesian government has made preparations through the Ministry of Industry by monitoring the flow of imported goods entering Indonesia with cooperation with the Ministry of Trade.
 
Industry Minister Airlangga Hartarto has asserted to not hesitate to apply the safeguard to anticipate excessive import volume, just like the US doing.
 
However, such protection will only be enforced in emergency situations when the domestic industry has begun to feel the impact of the US policy. (Antara)


(FJR)