Economist: The Government's Steps To Strengthen Trade With The US Are Right

Executive Director of Celios Bhima Yudhistira Adhinegara was a speaker at a discussion entitled 'Omon-Omon Welfare: Shadow Report 100 Days of Prabowo-Gibran's Government in Jakarta (Between)

JAKARTA - Paramadina University economist Wijayanto Samirin views that the Indonesian government's move to strengthen trade relations with the United States (US) is appropriate, as a mitigation of the impact of US President Donald Trump's protectionism policy.

"The steps taken by the government are correct. As a country experiencing a trade surplus against the US, we need to be vigilant even though our surplus is minor compared to other countries," said Wijayanto when contacted by ANTARA in Jakarta, Saturday.

When asked whether this step would make Indonesia's economic relationship with China tenuous, Wijayanto thought that Indonesia does not need to choose between China or the US alone but embraces all parties. In terms of trade, he said, Indonesia does not need ideology or politics.

"China definitely doesn't mind, they understand that when it rains everyone is looking for an umbrella," said Wijayanto.

The same thing was conveyed by the Executive Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira. When contacted separately, Bhima said that what the government was doing in strengthening cooperation with the US was important.

"In the era of the death of multilateral cooperation, the prospect of trade must be established bilaterally," he said.

First, added Bhima, Indonesia can avoid the target of increasing US rates because of harmonious relations. If it is controversial, Indonesia will certainly be the target of increasing the import duty rate to the US and this will harm the position of business actors.

Second, Indonesia can reap opportunities for industrial relocation from the US, especially companies that avoid tariff wars or those that want to approach raw material sources.

"The position of an Indonesian company can be more entered into the global supply chain," said Bhima.

The third, added Bhima, Indonesia will continue to hold active free foreign politics to balance relations with China, which for the past few years have been too dominant.