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The steel industry is considered the most sensitive to US trade wars
REPUBLIKA.CO.ID, JAKARTA – The government is wary of the flow of steel and ceramics products from China to the United States # 39; Indonesia. This, in anticipation of the impact of trade wars between the United States and China.
"The steel sector is susceptible to trade war.I think the ceramic sector is flooded with imports of different grades.Yes, the industry is difficult to compete, especially the Medium to lower industry, "said the minister. Airlangga Hartarto industry after attending a coordination meeting at the coordination office of the Ministry of Economic Affairs, Jakarta, Friday (6/7).
Airlangga said after the United States imposed additional import duties on products imported from China, it is possible that the country's Bamboo Curtain will divert its exports to Indonesia . One policy that can maintain the competitiveness of these products with imported products is the lowering of gas prices for the industry.
"So, if the industry does not get the gas as expected anymore with the flow of imports then the industry hit double shot twice the blow", said Airlangga.
In addition to the problems of trade war, he said, Indonesia is currently facing trade balance deficits. Based on data from the BPS, Indonesia experienced a deficit of US $ 2.83 billion from January to May 2018.
To improve it, Airlangga will boost the import substitution sector . In the textile sector, for example, there is a substitution of paraciline products. According to Airlangga, if the substitution of raw materials of fabric fibers can work, the textile industry can squeeze imports to 2 billion US dollars a year
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