Indonesia has not violated US trade regulations: BI

Indonesia has not violated US trade regulations: BI

Bank of Indonesia (BI) (ANTARA)

Jakarta (ANTARA News) - Indonesia did not violate US trade and customs laws, as mentioned in President Donald Trumps latest executive orders outlining 16 countries having followed unfair trade practices, Bank Indonesia (BI) Senior Deputy Governor Mirza Adityaswara stated.

Indonesia was in the 15th position on the list, with US$13 billion in trade surplus with the US, followed by Canada, with a $11 billion surplus.

China was in first place, with a $347 billion surplus, followed by Japan, Germany, Mexico, Ireland, Vietnam, Italy, South Korea, Malaysia, India, Thailand, France, Switzerland, and Taiwan.

Responding to Trumps policy, Adityaswara explained three criteria for a country that was deemed detrimental to the US trade, including owning more than $20 billion in trade surplus.

"Indonesia must not be on the list, as the country only has a trade surplus of $13 billion (according to the US claim)," he remarked here on Wednesday.

The US should also anticipate countries having a surplus in their total current account, in terms of the exports and imports of goods and services.

Indonesia, again, was not included on the list of those countries, as its current account deficit is 1.8-2 percent of the gross domestic product.

Lastly, countries that were not potentially beneficial for trading with the US were those constantly interfering by artificially altering their currency exchange rate in a year, with the aim of achieving an unfair trade advantage with the US, so that the value of their exports to the country would become cheaper.

Adityaswara asserted that Indonesia had never intentionally weakened its rupiah exchange rate to boost its exports to the US.

"On the other hand, BI, if necessary, makes a foray into the market to control volatility. We attempt to prevent the rupiah from reaching its weakest level," he emphasized.

Earlier on Monday, President Trump had called for an investigation into 16 countries that had contributed to the US "trade imbalance."

President Trump has also ordered for the collection of anti-dumping duties that must be paid to the US.

According to the US Accountability Office, more than $2.3 billion in uncollected anti-dumping and countervailing duties were owed to the country since 2001.

The investigation will focus on unfair subsidies, currency rate and its effects, and the absence of mutual benefits in some trade practices, among others.

The Trump administration has vowed to enforce a strict law on trade and increase the unilateral trade approach.

Reported by Satyagraha