REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government has urged trading partners, especially the United States to conduct free and fair trade, following US President Donald Trump's move to impose high import tariffs on steel and aluminum products. Trade Minister Enggartiasto Lukita told Antara that Trump's move would have no direct major impact on Indonesia as its steel and aluminum exports to the US were not much.
"We, however, ask anyone, especially the US and Europe, to do free and fair trade. Basically, starting a trade war would be disruptive and detrimental (to each party)," he said during a telephonic conversation here on Friday.
Based on the data from Indonesia's Central Bureau of Statistics, the value of Indonesia's steel exports to the US in 2016 was US$43.7million, or under two per cent of the country's total needs. Also, the value of Indonesia's aluminum exports amounted to only US$116,000.
"We do not expect a trade war, but in this case, the impact of the trade war would not be good," he said.
Trump has announced to impose an import tariff of 25 per cent on steel and 10 per cent on aluminum. The decision was made in order to protect domestic products in the US, but it might trigger a trade war with foreign countries. In fact, in the beginning of Trump's administration, his top economic adviser Gary Cohn resigned from his post on the same issue.
Indonesia's total trade with the US reached US$25.91billion in 2017, an increase of 10.53 per cent compared with 2016, when it only amounted to US$23.44billion. Indonesia's surplus reached US$9.66billion in 2017, and it was the first increase after a continuous downward trend since 2014.
Indonesia's non-oil and gas exports to the US increased by 9.29 per cent or US$17.14billion. Indonesia's major export commodities were crustaceans (0.91 per cent), natural rubber (0.74 per cent), new pneumatic tires (0.74 per cent), leather footwear (0.57 per cent), and women's clothing (0.53 per cent). At the same time, Indonesia's main import commodities from the US were soybean, steamed turbines, cotton, wheat and meslin flour, and animal feed.
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