The Impact Of The China Vs. US Trade War, Trade Minister Lutfi Says Demand For Indonesian Exports Is Increasing

Minister of Trade, M. Lutfi. (Photo: Doc. Ministry of Trade)

JAKARTA - The Minister of Trade (Mendag) Muhammad Lurfi said the trade war between China and the United States (US) which is still heating up has brought its own blessings to Indonesia. The impact of this economic phenomenon has increased the demand for exports of goods from the country.

According to Lutfi, the trade war could be a new opportunity for domestic industries, especially micro, small and medium enterprises (MSMEs) to spread their wings in the international arena. The government also promised to provide facilities in order to expand market share at the global level.

"Currently, Indonesia is flooded with requests for products to be exported abroad. This is an extraordinary opportunity to encourage national exports," he said in an official statement, quoted Tuesday, October 5.

Furthermore, Lutfi said that this opportunity was being used by several MSMEs such as PT Bio Takara, Palemcraft, Nudira SDI (Sumberdaya Indonesia), Sinar Prima Group, Legong Bali Nusantara, and Solusi Mandiri Agro. They are targeting export market share to Middle Eastern countries through the Expo 2020 Dubai event as a promotional medium.

"We can find solutions to jointly improve the performance of national exports, especially in the Middle East region," he said.

Meanwhile, the Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid added that his party will collaborate with relevant stakeholders to jointly find solutions to the challenges and obstacles faced by business actors.

Furthermore, Arsjad said that the Kadin also continues to encourage national exports by prioritizing exports to countries that have a comprehensive economic partnership agreement (CEPA) with Indonesia, including the UAE, Australia, Switzerland, Hong Kong, the European Union, Turkey, and South Korea.

The CEPA is a cooperation agreement between countries that can be optimized to increase international trade.

"Kadin is also trying to create an ecosystem that can connect SMEs with potential buyers. This is done to facilitate exports to destination countries. The plan is that this project will be carried out in Australia, Switzerland, and will take advantage of the Expo 2020 Dubai event to develop projects in the UAE," he said.