Trade War May Put Indonesia on Top of China Export Market List



Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The ongoing trade war between the United States and China is estimated to affect trade climate in Indonesia. Sanny Iskandar, deputy of regional economic development at the Chamber of Commerce (Kadin), said China may turn its eyes on Indonesia as a major export destination as they have lost the American market.

    "Because they lost their market in the United States, China is looking for opportunities to export to other nations, especially the Asian region, including Indonesia," Sanny told Tempo on Thursday, May 16.

    Sanny said this would mean an influx of Chinese goods to Indonesia's market—on a scale more massive than before the trade sentiment.

    Read: Will US Import Tariff Hike on Chinese Products Affect Indonesia

    He added that Indonesia is a target market China because of the potential from its large population potential. In addition, the competitiveness of domestic industries is not strong enough to produce similar goods made by China.

    Products from China that will invade Indonesia's markets for food, beverages and textiles or garments, which were mainly exported to the US.

    In face of the US-China trade wars, Sanny said Indonesia must be ready to improve the quality of its products to withstand the import flux of Chinese products.

    "Indonesia can actually seize this momentum to export to Ameria," he said.