BI Says The Indonesian Market Has The Potential To Be Flooded With Chinese Products Due To The US Import Tariff Policy

BANDA ACEH - Bank Indonesia (BI) assesses that the impact of the policy of imposing an import rate in the United States (US) will have an impact on the Indonesian economy.

Director of the BI Department of Economic Policy and Monetary Budi Winantya said that the impact of the US President's import tariff policy would not directly target the Indonesian economy.

However, it will only be felt if China's economy as a target country for US import rates slumps.

"The impact of this increase, from this uncertainty, especially regarding Trump's tariff, on the one hand, there are risks, especially related to China (China)," he said at a Media Training event at the BI Banda Aceh Representative Office, Friday, February 7.

Juli stated that this happened because China was one of Indonesia's main trading partner countries.

So that China's weakening economy due to the US import tariff policy could threaten Indonesia's export performance.

"Chinese is our main trading partner. So what happens with China will certainly affect us. The risk can be from our slow exports. Because China's economic growth has slowed," he said.

Juli said that there is a chance that exports could occur from the market share left by China.

Products that can be produced by Indonesia can be absorbed in these warring countries.

According to him, this could also have an impact on the Indonesian market which will be flooded with products made from China because of the policy of higher US import rates on Chinese products.

"Because Chinese products cannot be sold again to the United States. So it could also flood into Indonesia. That's in terms of risk, right," he said.

However, July said that Indonesia has the opportunity to reap profits from the US import tariff policy. Among other things, by increasing export volume to fill the market left by China.

"We can take the Opportunity from export opportunities that we can take from the export nation left by China," he said.

Meanwhile, in terms of investment, July said that Indonesia also has the potential to get an overflow of investment from China and other countries affected by the US import tariff policy.

"For our friends, maybe we will flashback them in 2017-2018 when the tariff is applied. At Trump time 1, 1.00. That is the order for many companies to relocate their operations from China to Vietnam," he said.