International Journal of Business and Economics Research
Volume 9, Issue 3, June 2020, Pages: 151-159
Received: Jan. 30, 2020;
Accepted: May 11, 2020;
Published: May 29, 2020
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Humphrey Wangke, Indonesia Parliamentary Expertise Board, Jakarta, Indonesia
The trade war between the United States (US) and China is occurred at the time the two countries has mutually apply the additional effective tariffs since the beginning of September 2019 on comodity they trade. This trade war could have positive and negative impacts to Indonesia. The positive is Indonesia has potentialy become an industrial countries destination that departs from China to find a new locations. The negative is the demand of raw materials nor the comodity from Chinese to Indonesia will be decrease. This article is a result of research in East Java and South Sumatra Province in 2019. The analysis in this paper is based on the research results using the qualitative methods. The Data collection techniques conducted through the interviews on field with random selected respondents, the field observations and the literature studies. The field research was carried out with the purpose of analyzing the implications of the US-China trade war toward Indonesia. The results of the study shown that Indonesia is transforming its finances in order to remain competitive in global economic uncertainty due to the trade war. In order to meet this need, several steps taken by Indonesia including the regulations harmonization, strengthen the national economy on an inclusive basis and Indonesia’s economic diplomacy.
Implications of United States - China Trade War to Indonesia, International Journal of Business and Economics Research.
Vol. 9, No. 3,
2020, pp. 151-159.
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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Interview with Yustianus, the Head of Trade Agency of South Sumatera Province, 10th July 2019, Palembang, Indonesia.
Interview with Johanes, Assistant of the Regional Secretary of South Sumatera Province, 9th July 2019. Palembang, Indonesia.
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Zainal Arifin, Dinas Koperasi dan UMKM of South Sumatera’s Province, 10th July 2019, Palembang, Indonesia.
Trade plays an important role in the Indonesian economy. According to the World Bank, despite the global economic slowdown, trade still manages to contribute up to 43% of Indonesia’s total GDP in 2018, amounting up to USD 293 billion. See, https://data.worldbank.org/indicator/NE.TRD.GNFS.ZS?locations. Accessed on 31 Januari 2020.
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The 2020 edition of the World Development Report with the theme "Trading for Development in the Age of Global Value Chains" states that Indonesia's participation in the global value chain is still weak because it is still a supplier of raw and mineral goods.