“We used to think of China as in Glodok alone, not now. 16 percent or more world trade it’s held by China. So, if there is anything with China, we will definitely be disturbed, “he said while attending the University of Indonesia (UI) IV Anniversary event and broadcast virtually on Friday (14/8/2020).
The influence to the world, Luhut continued, began when there was an ongoing trade war tension between the United States (US) and China.
“Indonesia is in the midst of global uncertainty and that is what is happening right now. If we look from the political landscape, now the world restructuring is getting corrected due to globalization. We feel that the tension war between America and China has a very broad impact,” he said.
Especially when there was the Covid-19 pandemic which also affected the whole world, including China, which was considered the most significant for shaky trade.
“As soon as there is Covid-19, it will affect all. Trade is also disrupted in China. China dominates world trade. So if there is a cynic about this, we shut ourselves off. In fact, we can’t. We have to look at the world context. , “he said.
The government previously explained that the fall of China’s economy had a big impact on the world because the products produced by China were the largest products used by the world. These products are either in the form of raw materials or finished products.
This then became a problem when the country stopped its production activities as a result of the corona virus outbreak. An example is the influence with Indonesia.
Of China’s total exports to other countries, about 30 percent of the raw materials used are from Indonesia. In addition, there are an estimated two million Chinese tourists coming to Indonesia per year. No wonder if China’s economy drops to 1 percent, the Indonesian economy will be affected by 0.3-0.6 percent.