TEMPO.CO, Jakarta - Professor of economy and business at Universitas Indonesia Mari Elka Pangestu highlighted the possibilities of a global-scale trade war. Mari Elka asserted that the possibilities will grow if countries subject to the United States protectionism policy decided to retaliate.
"If there is a trade war, it will result in uncertainty, which will later disrupt the United States' financial market," Mari Elka said during an international symposium event in Jakarta on Tuesday, March 7, 2017.
Countries subject to US President Donald Trump's protectionism policy include China, South Korea, Japan, Mexico, and Canada.
Mari Elka hoped that the possibilities of a trade war can be reduced by the US internal dynamics, especially with the help of US businessmen hoping to have access to cheap import costs.
Mari Elka explained that although Indonesia is not included in the policy, it would still have an effect because the global economic production chain has currently connected countries with one another across the globe.
Similarly, Chairman of Economic Department of the CSIS (Center for Strategic and International Studies) Yose Rizal Damuri, confirmed that Indonesia will suffer indirect effects of the US' protectionism policy.
Yose explained that 50 percent of Indonesia’s export to China are being re-exported to other countries. Similar conditions occur in Indonesia’s export to South Korea and Japan.
"Imagine if Japan and China suffered the effects of the protectionism policy, we will suffer indirect effect. It would be worse if a trade war occurs," Yose said.
ANTARA
