REPUBLIKA.CO.ID, JAKARTA -- The Trade Ministry is making additional efforts to gain from the US-China trade war to boost Indonesia's exports and foreign exchange. Indonesia can utilize the opportunity from the trade war between the United States and China to replace imported products with domestic ones.
"(We can) fill the void of Chinese or US products with products manufactured from our domestic industry and to export our products to China," Trade Minister Enggartiasto Lukita informed Antara on Friday.
Under President Donald Trump's administration, the United States has begun imposing a tax rate on imported goods from China. Such policy has triggered a reaction from China, which has been reducing the purchase of several US products.
Indonesia can seize opportunities from such conditions to fill the stocks, both in the United States and China. In addition to spotting such opportunities, Indonesia aims to open up the markets for non-traditional export destinations by securing traditional export markets.
Destinations for Indonesia's non-traditional markets include African countries, Latin America, Middle East, Eurasia, and South Asia.
In an effort to increase the country's foreign exchange reserves, President Joko Widodo stated that one of the steps needed was to reduce the volume of imports. The president seeks a differentiation between strategic and non-strategic imports.
"Imports of consumer goods through the Trade Ministry will be controlled," Lukita noted.
Non-traditional markets, such as the United States, need to be secured. However, the United States has a plan to review the Generalized System of Preferences (GSP) facility in Indonesia.
In response, the Indonesian government took the step by embracing US importers and declaring that Indonesian raw materials are needed to support the continuity of their businesses. Without the GSP scheme, the prices of US products will be higher.
Meanwhile, one of the opportunities to increase exports to countries and increase foreign exchange is by boosting the export of aircraft. Nigeria is one of the non-traditional destination countries interested in buying aircraft from Indonesia.
Until 2017, state aircraft manufacturer PT Dirgantara Indonesia had produced as many as 431 aircraft. The most ordered types are 110 NC212i, 122 NBO105 Helicopters, and currently being developed CN-235 type small aircraft, with a capacity of 40 passengers.
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