We have to be cautious of the conflict between China and Taiwan. Why should we be cautious? Because one country with a large investment in Indonesia is China, and Taiwan is as well.
Jakarta (ANTARA) - There is an economic opportunity for Indonesia amid the ongoing conflict between China and Taiwan, although it would have to be explored cautiously, Investment Minister Bahlil Lahadalia has said.

"We have to be cautious of the conflict between China and Taiwan. Why should we be cautious? Because one country with a large investment in Indonesia is China, and Taiwan is as well," he expounded at an online press conference, accessed from here on Monday.

Lahadalia said that he is still gauging the risks that might arise from the conflict between China and Taiwan to investment in Indonesia. However, he said he hopes that their domestic conditions will not have too large an impact on Indonesia.

"But how extensive (the impact on investment) is, we are still (trying to measure). Hopefully, their domestic politics will not have a severe impact on investment," he added.

The minister said that just because there is a war, it does not mean that economic interests can be disregarded. Some parties have even benefitted economically from conflicts or wars between countries.

Thus, Indonesia can also seize the opportunity for the sake of domestic interests, he said. Moreover, communication between Indonesia and China, as well as Taiwan, is quite sound from an economic point of view.

"(Amid the war) between Ukraine and Russia, there have been several countries that have taken advantage of the condition for (their own) economic (good). Well, maybe if this (war) happens between China and Taiwan, we can (also take a chance). Our (relations) are also good," he remarked.

Lahadalia also urged everyone to not be afraid, saying caution is necessary, but it has to be coupled with anticipatory measures.

"We may worry, we may anticipate, but don't be afraid of (what lingers) out there," he remarked.

Meanwhile, Head of the Fiscal Policy Agency of the Finance Ministry Febrio Kacaribu said that the impact of the ongoing conflict between China and Taiwan on the Indonesian economy has been quite limited so far, but the situation must be monitored.

"So far, we have yet to see a significant impact, but we still have to be cautious," Kacaribu said at the Ask Fiscal Policy Agency event hosted online on Monday.

Related news: Impact of China-Taiwan conflict on Indonesia will be limited: ministry

He explained that the ongoing conflict between Taiwan and China is a geopolitical issue, so from an economic perspective, the conflict poses exogenous risks.

Thus, the conflict is beyond the scope of the Indonesian economy, and its impact is estimated to be in the form of a spillover on the domestic economy.

However, should the tensions escalate further, he said that he will examine the risks of the conflict on trade mobility and investment.

Related news: RI calls for easing of tensions following Pelosi's Taiwan visit









Translator: Ade Irma J, Mecca Yumna
Editor: Rahmad Nasution
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