TRUMP "MENABUH GENDERANG PERANG DAGANG", GIMANA EKONOMI INDONESIA? | Primetime News

Summary

The video discusses the challenges and opportunities Indonesia faces due to the rising import tariffs in the U.S., which have affected countries like Vietnam, Thailand, and Indonesia. While tariffs present challenges, the Indonesian government sees them as an opportunity to attract investment, especially from China. The government is focusing on deregulating and streamlining bureaucracy to encourage both domestic and foreign investment. The discussion also highlights specific examples, like the potential return of factories to Indonesia from Vietnam due to more favorable tariff conditions. The aim is to minimize economic impact and boost Indonesia's investment appeal.

Takeaways

• 😀 The U.S. has raised import tariffs, especially on products from countries like Indonesia, Vietnam, and Thailand, affecting global trade dynamics.
• 😀 Indonesia faces a 32% tariff increase, while Vietnam has been hit with a higher 46%, positioning it as a more significant challenge in the region.
• 😀 The U.S. tariff increases are seen as both a challenge and an opportunity for Indonesia, particularly in terms of shifting trade routes and production.
• 😀 Countries, such as China, are responding to these tariff changes by restricting investments in the U.S., potentially shifting their focus to Southeast Asia.
• 😀 Indonesia aims to take advantage of this shift by simplifying regulations to attract foreign investments rather than focusing solely on imports.
• 😀 The government is working on deregulating and streamlining bureaucracy to make it easier for both domestic and foreign investors to set up businesses in Indonesia.
• 😀 There is potential for industries, like the footwear manufacturing sector, to shift from Vietnam to Indonesia due to lower tariffs and a more favorable regulatory environment.
• 😀 The Indonesian government is prioritizing creating an attractive investment climate through administrative reforms and removing barriers to investment.
• 😀 Indonesia's strategy is to reduce the impact of rising U.S. tariffs by focusing on attracting investment, rather than attempting to reverse the tariff increases.
• 😀 The main goal of the government's current efforts is to position Indonesia as an attractive alternative for production and investment in response to global trade shifts.

Q & A

What is the primary concern raised by Mas Danang in the transcript?

Mas Danang's primary concern is the increasing influx of foreign products, particularly from China, which may flood the Indonesian market.

What is the significance of the increased import tariffs by the United States?

The increased tariffs by the U.S. are significant because they create challenges for countries like Indonesia, Vietnam, and Thailand, potentially limiting exports to the U.S. but also presenting opportunities for these countries to attract investments.

How does the Indonesian government view the increased import tariffs?

The Indonesian government sees the tariff hikes as both a challenge and an opportunity. They recognize the potential to shift some manufacturing and export activities from the U.S. to Indonesia, turning the country into a more attractive destination for foreign goods and investments.

How does the Indonesian government plan to respond to the tariff increases?

The Indonesian government plans to respond by simplifying regulations and improving bureaucracy, aiming to attract investments rather than focusing on imports.

What potential opportunity is highlighted regarding China’s response to U.S. tariffs?

China’s response to the U.S. tariff increases, which includes restricting investments in the U.S., could lead to more Chinese investments in Indonesia if Indonesia successfully deregulates and creates a more investment-friendly environment.

What example is provided to demonstrate Indonesia’s potential to attract manufacturing back?

An example given is that of a shoe manufacturing factory which previously moved from Indonesia to Vietnam due to favorable conditions. However, with Vietnam’s higher tariffs (46%), Indonesia’s lower tariffs (32%) may encourage this factory to return to Indonesia.

What does the Indonesian government mean by ‘simplifying regulations and permitting’?

The Indonesian government refers to making it easier for businesses to operate by reducing unnecessary bureaucracy and regulatory hurdles, not for importing goods but to attract investment and encourage local and foreign businesses to set up operations in Indonesia.

What does the government hope to achieve with its focus on attracting investments?

The government aims to boost economic growth by attracting both domestic and foreign investments, particularly in sectors like manufacturing, to create jobs and enhance Indonesia’s economic competitiveness.

Why is the lower tariff rate in Indonesia seen as an advantage?

The lower tariff rate in Indonesia (32%) compared to Vietnam’s (46%) makes it a more attractive destination for manufacturing and export activities, as it can offer a more favorable environment for companies looking to avoid high import duties.

What long-term impact is Indonesia hoping for with the deregulation efforts?

Indonesia hopes that its deregulation efforts will lead to sustained economic growth, greater foreign direct investment, and the creation of a competitive business environment, ultimately reducing the impact of challenges like higher import tariffs.