Luhut Fearful of US-China Trade War might Turn to Actual War



Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - Coordinating Minister of Maritime Affairs Luhut Binsar Pandjaitan acknowledged that Indonesia is paying close attention to the trade war between governments of the United States and China that has grown in tension.

    The rising tension was mainly sparked by U.S. President Donald Trump’s decision on August 1st to impose 10 percent tariff for Chinese imports which if accumulated is worth USD300 billion. This was met with a response from China by stopping its purchase on the United States’ agricultural products.

    “We can see that the U.S. is hit hard by this, they tend to continue to raise the tariff to 25 percent for imports. If that happens, an actual war can take place,” said Luhut at the Jakarta Convention Center (JCC) on Tuesday, August 13.

    The minister revealed he asked Chinese businesses about the situation, to which – according to Luhut – they answered; “It’s very painful. This is what we need to keep an eye on,” said the minister.

    Luhut underlined the weakening of China’s Yuan to the level of 7 Yuan per USD, which has affected Indonesia’s Rupiah to also weaken to Rp14,200 per US Dollar.

    “We need to be aware of this,” said Luhut.