Minister of Finance (Menkeu) Sri Mulyani Indrawati emphasized the importance of diversifying trade relations in response to the dynamics of global economic policy, especially those from the United States (US).
Sri Mulyani revealed that although the direct trade exposure between Indonesia and the United States was relatively small because it was less than 2 percent of Gross Domestic Product (GDP), the impact of the country's superpower policy remained globally significant.
"Our trade directly with the US is less than 2 percent of our GDP, so it's actually not too big. The total exports in our GDP are around 20 percent, but that doesn't mean what happens is not important. This not only affects Indonesia, but also the whole world," he said in his statement, quoted Monday, April 28.
According to him, with current global conditions, many countries are pushing to re-evaluate their trade strategies and look for alternative export markets outside the United States.
Sri Mulyani said that Indonesia was increasingly actively exploring and accelerating trade negotiations that had previously been hampered.
"This trigger, which may be a positive side, has led to many discussions about trade agreements that have stalled or have not made progress. Now, there are feelings we really have to make progress, we really have to reach an agreement because the alternative is no or less. So that's actually probably the positive side of holding more discussions like the Indonesia-EU talks we're doing," he said.
In addition, he also highlighted the importance of Indonesia's economic relations with China. Even though Indonesia is experiencing a trade deficit with the country, China has also made a lot of investments in Indonesia, especially in the strategic mineral sector.
"Chingkok has invested heavily in Indonesia's strategic mineral sector. This is an area where Indonesia plays an important role because of the wealth of our natural resources. Indonesia is already producing in this sector," he said.
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With these various approaches, Sri Mulyani said that the Indonesian government affirms its commitment to expanding international trade and investment coverage as part of a long-term economic development strategy in the midst of a global landscape full of uncertainty.
"So, this is an area that can provide many alternatives for Indonesia, both in the form of trade goals and in terms of areas where we can work together, partnering with many countries in the world," he explained.
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