Jakarta (ANTARA) - The Indonesian government is working on strategies, such as product diversification, to anticipate the potential impact of the policy formulated by the new United States administration under Donald Trump to increase tariffs on imported goods.Trade Minister Budi Santoso underlined the need for domestic business actors to diversify their export products in the wake of Trump's decision to levy higher duties on goods imported from Canada, Mexico, and China.
"It is important that we diversify our products, focusing on goods that are not produced in the US," he said in Jakarta on Wednesday.
He then highlighted the significance of the US market, saying that the country remains the largest contributor to Indonesia's trade surplus, valued at US$16.84 billion, followed by India (US$15.39 billion) and the Philippines (US$8.85 billion).
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The minister informed that he has engaged Indonesian business players in discussions to encourage them to support the diversification drive to maintain Indonesia's trade surplus with the US.
Earlier, he assured the public that Indonesia is well-prepared to face the trade war between the US and China, along with any likely spillover effects.
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"The war is not a new issue, and we are ready to face it," he emphasized in Jakarta on January 15, 2025.
He made the statement in the wake of Trump's threats to impose a 100-percent import duty on goods from BRICS countries and a 60-percent tariff on Chinese products, which could further escalate geopolitical tensions and disrupt global supply chains.
The minister said that bolstering competitiveness is vital for Indonesia to maintain its economic prowess amid these circumstances. He argued that a solid level of competitiveness in the trade of goods and services would draw international attention to Indonesia.