Govt: Indonesia Unaffected by Hong Kong Recession

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto said that a recession faced by several countries including Hong Kong would not affect the domestic economy as it originated from their internal.

Airlangga opined that Indonesia still had a strong economic condition, especially in order to deal with the economic slowdown and global uncertainty following the impacts of the trade war between China and the US.

“Indonesia has a good domestic market, unlike [the economy of] Singapore and Hong Kong that have already in a slowdown,” said Airlangga before reporters in his office, Lapangan Banteng, Central Jakarta, Tuesday, November 5.

According to the minister, the effect of the economic recession was not too significant because Indonesia did not have direct trades with Hong Kong. The country was considered as a transshipment point, and Indonesia had directly shipped export goods to China thus far.

In addition, the state economy in the future would be supported by the agreement of the international Regional Comprehensive Economic Partnership (RCEP), which involved 16 countries. The tie was expected to boost the country’s export market.

Airlangga Hartarto went on to say that RCEP was a larger trade block than the usual one in Europe, and so it would further benefit Indonesia in the future. “There is a new block, East Asia Free Treat Agreement, a bigger one. This will be our bigger market than Hong Kong,” he said.

DIAS PRASONGKO