"If a trade war between large countries such as the US and China, the world`s largest and second largest economies, happens, it will have a far-reaching impact," Kalla said at the Vice Presidential Office here on Tuesday.
Fears over a looming trade war between the US and China have been mounting in many countries since US President Donald Trump set 25 percent duty on imported steel and 10 percent duty on imported aluminum.
"Only two types of goods, namely steel and aluminum, have been affected (but the policy) may have a far-reaching impact," he said.
The vice president expressed hope that the tension between the two countries in the global trade field could be solved through the World Trade Organization (WTO).
"Therefore, there is WTO to prevent a trade war. But if (both the US and China) take a retaliatory action that is called a trade war which is dangerous to global trade," he said.
Regarding the impact of the US policy to raise import duties, he said the Indonesian government is prepared to take a retaliatory measure by raising duties on the US products.
Crude palm oil currently dominates Indonesia`s exports to the US, while its imports from the US mostly comprise soybean and wheat.
"If they (the US) hamper our (commodities) to enter the US market, of course, we (will) reduce the import of soybean and wheat from the US. We must do so. We import soybean, corn, wheat and Boeing planes. How many Boeing planes we have bought from the US," he said.
Director General of Multilateral Cooperation of the Ministry of Foreign Affairs Febrian A Ruddyard said WTO could hopefully solve trade tensions between the US and China.
"The US and China trade war should be resolved through the WTO dispute settlement mechanism. WTO is the most suitable means to solve trade disputes because it has mechanism involving law experts so the objectivity and legality of its solution can be assured," he said after opening a Government Officials Capacity Building Workshop on WTO issues in Bandung, West Java, on Monday.
Reported by Fransiska Ninditya
(T.S012/A/KR-BSR/A014)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
