Indonesia should optimize the opportunities arising from the ongoing trade war between the United States (US) and China, Coordinating Minister for Economic Affairs Airlangga Hartarto said.
“We are in the middle of a situation that we can take advantage of…as the United States has begun banning imports of Chinese products,” he observed at the “2023 National Workshop on Internal Government Oversight” here on Wednesday.
He said that Indonesia has become a member of the first regional cooperation that focuses on supply chain issues, namely the Indo-Pacific Economic Framework (IPEF).
Other IPEF members include Brunei, Fiji, Singapore, Thailand, Malaysia, Vietnam, Australia, India, Japan, New Zealand, South Korea, the Philippines, and the United States.
IPEF member countries have committed to economic cooperation that involves the private sector, as well as to implement technical assistance and capacity building programs.
The collaboration is expected to increase investment in critical sectors, prominent assets, physical and digital infrastructure, transportation, as well as employment projects.
“Indonesia and the US are discussing the facilitation of exports of nickel products from Indonesia to the US through the Indo-Pacific Economic Framework,” the coordinating minister said.
IPEF represents more than 40 percent of the world economy, as well as 28 percent of world trade in goods and services. Its goal is to develop inclusive economic cooperation among the Indo-Pacific countries.
The trade war between the US and China began in 2018 when the 45th US President, Donald Trump, decided to impose tariffs on the importation of Chinese products, which were considered to have a detrimental effect on the sale of products. nationals.
In response to US policy, China has also imposed import tariffs on US products.
The two countries continued to gradually impose tariffs on each other, resulting in an escalating trade war.
The United States recently limited trade in artificial intelligence and semiconductor technology to China citing national security.
In response, China filed a complaint with the World Trade Organization (WTO) against the US policy.
In addition, the Chinese government allocated $140 billion (about Rp 2.092 trillion) to increase domestic chip production.