Indonesia looks to China as it tries to deal with trade pressure from US
As delegation goes to Washington for talks, Indonesian official says Jakarta and Beijing are ‘setting a constructive example in the face of protectionism’
China and Indonesia are forging closer economic ties as the two countries face threats to their trade relations with the US, a trade official from the Southeast Asian nation said.
Indonesia has joined the list of countries forced to respond as the United States ratchets up pressure on trade, and Jakarta has sent a delegation to Washington as the US seeks to reduce its deficit with trading partners around the world – triggering a backlash from allies.
“US protectionism is really affecting lots of places – China, the EU, and now Indonesia,” said Dandy Iswara, trade attaché at the Indonesian embassy in Beijing.
“China and Indonesia are both facing a common problem in the US, and at the same time China and Indonesia are setting a constructive example in the face of protectionism by increasing international trade.”
In April, Indonesia and China signed five contracts worth US$23.3 billion for infrastructure projects, including a hydropower plant and a facility to convert coal into dimethyl ether – an organic compound that can be used as an alternative fuel. Two-way trade between the nations hit US$63.4 billion last year, up by 17 per cent from 2016.