"We have to carefully address this matter as China`s economic growth was curbed by internal adjustment and trade war with the United States," Sri Mulyani said here on Monday.
The Minister said demand also fell in non traditional markets such as Latin America and Africa as a result of global economic slowdown.
"New markets are also generally hit by the protracted global crisis worsened by the trade war between the two economic giants." she said.
In addition some of the country export commodities such as crude palm oil are sensitive to non-economic issues like boycott against the country`s palm oil products on allegation that oil palm plantations caused extensive damage to tropical forests in the country.
Seeing the global uncertainty, the government has continued to offer incentives to strengthen the competitiveness of the country`s export commodities.
"The government seeks to shore up exports by improving competitiveness with more incentives. However, we need to understand the global market dynamics are high," she said.
In imports, the government plans to carry out deeper study of its policy of restricting imports, already announced earlier such as through higher import income tax tariff, she added.
"In other sectors -- oil and gas and non-oil/gas sectors - industry needs to have the capacity to produce import substitute products. Thereby we continue to focus on curbing imports," she said.
She said management of the trade sector has to be set toward slashing current account deficit now coming close to 3 percent of the GDP.
Earlier, the Central Bureau of Statistics announced deficit of US$2.05 billion in the country`s trade balance in November 2018 with exports valued at US$14.83 billion and imports at US$16.88 billion.
Cumulatively, the country`s international trade was in deficit of US$7.52 billion putting greater pressure on the country`s current account balance.
Reporting by Satyagraha
Editing by Sri Haryati
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
