Businessmen worry of Trumps’ protective policies

January 21, 2017, 08.00 PM  | Reporter: Agung Hidayat, Ramadhani Prihatini, Umi Kulsum
Businessmen worry of Trumps’ protective policies


JAKARTA. Some businessmen hope that the newly inaugurated President of the US (United States of America) Donald Trump will bring positive impacts to global business, including Indonesia. However, some are pessimistic of his trade and economic policies.

Executive Assistant to the President Director of PT Asia Pacific Fibers Tbk Prama Yudha said that the businessmen are cautious of Trumps’ protective policy. Indeed, the protection will deteriorate Indonesia’s exports. On the other hand, Indonesia is potentially to be penetrated by imports from other countries that cannot access the US market. “This is potentially to harm domestic industries,” he said.

General Chairman of Indonesia’s Textile Association Ade Sudrajat Usman said that the businessmen are adapting wait and see stance over Trump’s policy in textile industry. On one hand, Trump will prioritize to buy the US domestic products, while limiting imports from China and other countries.

Apparently, China will respond that policy by limiting the US’ products to penetrate China. We will invite the economic attaché of the US to directly explain about the US’ economic policy,” he said. To date, the US is the main destination of Indonesia’s textile and textile products exports.

General Chairman of Indonesia’s Tire Entrepreneurs Association (APBI) Azis Pane worries that Trump will increase the import duties. This will harm tire exports from Indonesia. APBI worries that Trump is likely to encourage import of crude rubber from Vietnam to develop the US domestic tire industry.

General Chairman of Indonesian Food and Beverage Business Association (Gapmmi) Adhi S Lukman said that Trump’s policy on blockading imports of all products, including from China, will affect to domestic food and beverages industries. “We are cautious of massive imports expansion from China,” he said.

Deputy of Executive Director of Indonesia’s Coal Mining Association (APBI) Hendra Sinadia said that Trump’s commitment in removing Obama’s policy on green energy will bring positive impacts to global coal industry.

If Trump removes the policy, financing institutions in the US will start disbursing funds to coal industry projects. If the policy is removed, coal price will move in positive zone. For an example, if demands and productions are oversupplied, the US will automatically export to other countries. This will subsequently improve the price.

(Muhammad Farid/Translator)

Editor: Dupla Kartini

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