Implications of United States - China Trade War to Indonesia

Abstract

The trade war between the United States (US) and China is occurred at the time the two countries has mutually apply the additional effective tariffs since the beginning of September 2019 on comodity they trade. This trade war could have positive and negative impacts to Indonesia. The positive is Indonesia has potentialy become an industrial countries destination that departs from China to find a new locations. The negative is the demand of raw materials nor the comodity from Chinese to Indonesia will be decrease. This article is a result of research in East Java and South Sumatra Province in 2019. The analysis in this paper is based on the research results using the qualitative methods. The Data collection techniques conducted through the interviews on field with random selected respondents, the field observations and the literature studies. The field research was carried out with the purpose of analyzing the implications of the US-China trade war toward Indonesia. The results of the study shown that Indonesia is transforming its finances in order to remain competitive in global economic uncertainty due to the trade war. In order to meet this need, several steps taken by Indonesia including the regulations harmonization, strengthen the national economy on an inclusive basis and Indonesia’s economic diplomacy. Keywords: