Bam seed speaks of Indonesian economic opportunities affect the trade war in the US-China

Jakarta – Members of the Indonesian parliament and postgraduate lecturer at the University of Borobudur Bambang Saesatyo (Bamsoet) had the trade war between the United States (USA) and China a complicated impact on Indonesia. From a decrease in export volume, exchange rate fluctuations, to reduced competitiveness in the product in the international market. According to him, the planned increase in import tariffs with 32% of Indonesian products to the US also put the pressure on the labor -intensive export sector, which was the mainstay of Indonesia. However, with appropriate strategies such as market diversification, increasing competitiveness through innovation and regulatory reform, as well as the negotiations of intelligent economic diplomacy, Indonesia has the potential to reduce these negative consequences, even gain economic benefits. “The trade war between the United States and China and the planned increase in Indonesia import tariffs to the US is a serious challenge for the Indonesian economy. Although there is an opportunity to fill the vacancy left by China in the global market, Indonesia must prepare for the negative impact,” Bamsoet said in his statement on Sunday (4/13/2025). Browse to continue with content “strategic and proactive handling is very important, so that Indonesia not only survives, but also grows in an increasingly complicated global trading climate,” he added as he offered the public lecture postgraduate program in the economy at Borobudur University in Jakarta, Saturday (12/4). Bam Seet explained that Indonesia must use the moment of change in the flow of world trade in the context of a trade war. As the rate of goods from China increases, several businesses in the US try to find alternatives to avoid higher costs. Indonesia, as a country with a plethora of wealth to natural resources, has the potential to provide American goods. From agricultural products, plantations, to consumer goods. “The US trade war has encouraged many businesses to move its production facilities to other countries to avoid high rates. Indonesia has the potential to attract foreign investment that previously focused on China,” he explained. “For example, manufacturing companies looking for alternatives to reduce costs can choose Indonesia as an attractive location due to relatively low labor costs and access to the Southeastern Asian market,” Bamoet continued. Bam Seet explained that the planned increase in the import rates of Indonesian goods by 32% to the United States, if implemented, would exacerbate the situation. This tariff increase will make Indonesian products directly in the US market. According to him, the diversification of the export market is one of the strategic steps that can be taken by Indonesia. Indonesia must reduce the dependence on the US market by exploring and expanding trade relations with Asean countries, the Middle East, Africa and Markets in Europe and Brics. This diversification helps reduce the risk caused by fluctuations in bilateral trade relations with the US and China. “There must be a joint effort between government and business operations to improve product efficiency, innovation and quality. Investment in research and development (R&D) to lower production costs and improve technology is much needed, so that Indonesian products are more competitive worldwide,” he said. Bam Seet added that the government, along with the delay period of import tariff increases for 90 days given by the US, should optimize negotiations by diplomatic channels. It aims to negotiate tariff adjustments or compensation in the form of raising the US product import to Indonesia for strategic sectors. The government must also increase economic diplomacy and international cooperation by working with Asean countries and G20 to express the common interests and improve Indonesia’s bargaining position in global negotiations. “In addition, the government must strengthen domestic consumption through incentive policies such as seasonal discounts, electrical discounts and other stimuli for the community. This step can maintain national economic growth, despite a decline in exports,” Bamoet concluded. (AKD/AKD) HOEGENG Awards 2025 Read the inspiring story of the exemplary police candidate here