Indonesia must be prepared for trade war: WB

Bogor, W Java, (ANTARA News) – Indonesia must be prepared for a possible trade war between countries with strong economic power, World Bank (WB) President Jim Yong Kim stated.

“We hope there will not be trade war, and there would not be parties involved in trade war. But like any other countries, Indonesia must be prepared for trade war between large economies,” Kim said at an elementary school SDN Takil 01 in Sukabumi district, West Java, on Wednesday.

President Joko Widodo, along with Kim, Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan, Finance Minister Sri Mulyani Indrawati, Health Minister Nila F Moeloek, Education and Culture Minister Muhadjir Effendy and Cabinet Secretary Pramono Anung visited the elementary school to monitor the realization of government program to deal with stunting.

“In the midst of global conditions, Indonesia has set a good example, because it has many things, such as lower ratio of debts to national gross domestic product compared to those of other developing nations. It also has strong public budget management, so that the Indonesian economy is in good condition,” Kim remarked.

He added that trade war will not be useful for anybody.

“Trade is the most crucial element for developing nations to grow at a faster pace,” he revealed.

US President Donald Trump earlier pointed out that the US will impose 25 percent import tariff on 818 different products starting from July 6 this year. The US is eying 1.3 thousand Chinese products worth US$50 billion to be subjected to tariff.

The new tariff will be imposed on the import of steel and aluminum.

Source: ANTARA News