Minggu, 16 Desember 2018

Coordinating Minister Darmin: Trade War is Unavoidable

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  • Darmin Nasution. TEMPO/Dinul Mubarok

    Darmin Nasution. TEMPO/Dinul Mubarok

    TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs, Darmin Nasution, said that the global economic condition in the middle of trade war is inevitable. With the condition, according to Darmin, Indonesia should be able to respond and adjust.

    “We can not avoid the trade war that ultimately affects the exchange rate, that capital flow is definitely affected, so we must adjust,” said Darmin on Sunday, July 22.

    According to Darmin, Indonesia should respond but not in a hurry. Because, it could also encourage the collapse of the multilateral global trade regime, especially after the United States to take steps that do not follow the standard of global trading.

    “The total balance of our trade balance is not too high, US$1,03 billion, but the oil and gas, the deficit is US$5,4 billion. Non-oil and gas surplus, but only US$4,4 billion. We have to overcome it,” said Darmin.

    Darmin said the government has decided to accelerate the implementation of B20 policy for biodiesel. He said if this policy can be implemented 90 percent, Indonesia can save foreign exchange through the reduction of oil and gas imports that can cover the deficit.

    Darmin stated that this policy cannot be done in the next few months. He hopes that in the next 6 months, the B20 policy can be fully applied (90 percent) to make surplus oil and gas trade balance.

    In addition, Darmin said, the government also needs to maintain the stability of the rupiah in the midst of unstable world economic conditions due to trade wars. Not only that, the government also needs to keep foreign capital flow so that foreign investment will be interested.