The decision should serve as an early warning to our government. If we remain silent and the World Trade Organization (WTO) approves it, our current account will be affected because we will lose various facilities,Jakarta (ANTARA) - The United States (U.S.) government's unilateral decision to exclude Indonesia from the list of developing nations can affect its current account, the Institute for Development of Economics and Finance (Indef) has opined. "The decision should serve as an early warning to our government. If we remain silent and the World Trade Organization (WTO) approves it, our current account will be affected because we will lose various facilities," Indef senior economist Aviliani said in a press conference in Jakarta Thursday.
The unilateral decision will make Indonesia's exports to the U.S. more expensive and will potentially reduce the market share of the Indonesian exports in the U.S. since other countries will replace it, she said.
The U.S. is one of the markets for Indonesia's key commodities including textile, garments, footwear, rubber, furniture and electronics, she said.
Indonesia's exports to the U.S. last year were valued at US$17.7 billion, while its total imports in the same year reached US$167.5 billion, she said.
"If we remain silent or do not lodge a protest, 12.84 percent (of our market in the U.S. in January 2020) will decline as their people will look for new suppliers," she said.
Indonesia has been excluded from the U.S. list of developing nations under the principle of Countervailing Duty (CVD) Act dated February 10, 2020, Indef researcher Ahmad Heri Firdaus said.
As a result of the policy, Indonesia's exports to the U.S. will be subjected to higher import duties, he said.
Unless Indonesia improves the competitive edge of its export products in the U.S. soon, its exports there will decline, he said.
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Translator: Zubi Mahrofi/Suharto
Editor: Yuni Arisandy Sinaga
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