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Indonesia Anticipates Trans-Pacific Partnership Cancellation

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16 November 2016 19:04 WIB

Japan's Economics Minister Akira Amari (center) smiles as he attends the Trans-Pacific Partnership meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in Nusa Dua, Bali, Friday (4/10). AP/Dita Alangkara

TEMPO.CO, Jakarta - Tjahya Widayanti, head of trade policy research and development at the Trade Ministry, said that China would gain wider market as a result of the cancellation of the Trans-Pacific Partnership.

“The cancellation of the agreement would make Indonesia remains competitive among other Asian countries, such as Vietnam in the fishery commodities and Malaysia in oil palm commodities,” Tjahya said in Jakarta on Wednesday, November 16, 2016.

According to Tjahya, the government would continue to formulate strategies in a bid improve exports to the US as an important export destination to the country.

“Over the last ten years, Indonesia’s exports to the US accounts for 11 percent,” she explained.

Tjahya added such achievement reflects that the US Presidential Elections in 2008 and 2012 did not have significant impacts on trades between Indonesia and the US.

“Indonesia’s export structure is relatively constant, as shown by textile, electronic, footwear, and other exports,” she said. 

The US, Tjahya revealed, has been the main source for Indonesia’s non-oil and gas trade surplus. In the period of January-August 2016, the surplus of trade between Indonesia and the US reached US$6.3 billion. The US economy in the second semester grew by 1.4 percent, and the US inflation rate was under control at 1.1 percent.

“We should not be concerned with US policies in the future,” she suggested.

Tjahya pointed out that the US economic condition would remain favorable to support Indonesia’s exports to the country. The global economy in 2017, which is estimated to grow to 3.4 percent, is expected to boost exports.

“However, Trump’s protective policies must be considered. There might be anti-dumping and anti-subsidy [policies] in the future,” she said.

ANGELINA ANJAR SAWITRI



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