Trade Deficit with China Unsustainable: Trade Minister

Wahyu Dwi Anggoro • 07 Desember 2015 15:29 WIB

Bola Business (En)

Trade Deficit with China Unsustainable: Trade Minister

Minister of Trade Thomas Lembong (Photo: MTVN/ Annisa Ayu Artanti)

Metrotvnews.com, Jakarta: Minister of Trade Thomas Lembong said Indonesia's trade deficit with China is worrying. He reminded that the trade deficit is unsustainable especially if China doesn't compensate it with bigger investment to Indonesia.

"That is why President Jokowi urges China to invest more in Indonesia because this is unsustainable," Lembong said in Apindo CEOs Gathering in JS Luwansa Hotel, Jakarta, Monday (12/7/2015).

Lembong said Indonesia's trade deficit with china has reached USD14 billion per year but its investment in Indonesia still trails behind compared with other countries.

"For example high speed train project funded by China cost USD5 billion in total or around USD1 billion per year. Compared with USD14 billion, it is still lacking," he added.

The situation also influences government's trade policy toward China. Lembong said he is not enthusiastic to open market for China and also India that are considered as direct competitors.

"Honestly i am not enthusiastic to open market for China and India. Both countries have low income and low production cost. They are direct competitors. In contrary, United States and European Union (EU) have high income. They are complementary with us. Until now we have trade surplus with the US . Moreover, they put a lot of investment in Indonesia," he explained.

Previously, government has announced its intention to join Trans Pacific Partnership (TPP) trade agreement initiated by US. Lembong said Indonesia also has intention to establish free trade agreement with the EU.

(WAH)

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