InfoSAWIT, JAKARTA – Many companies in Indonesia are aware of the developing protectionism from the main trade partners who start to protect their companies to develop the domestic markets. From the respondents that HSBC has collected, 71% companies in Indonesia expressed this perspective or it increased 16% from the last survey done by HSBC Navigator (the end of 2017).
From this result, 8% are much higher from the global in average. “This showed that the companies in Indonesia, in specific, are concerned of the implication by the raising tention between China and USA trade. This reflects that China is the main trade partner for Indonesia,” HSBC Navigator reported as InfoSAWITgot recently.
Meanwhile from the regulation sector, there were various perspective from the respondents. 45% of the businessmen knew that the available regulations have increased their cost burden, one third (31%) knew that the regulations would be positive to compete.
In a whole, the awareness of the trade policy is high enough from the two groups of respondents and some of them knew that the regulations are relevant to run their business.
In its relationship with the biggest export from Indonesia, the businessmen knew that ASEAN is the usefull organization (market to trade) (37%) rather than it to come, that is, the EU – Indonesia Free Trade Agreement (34%). “On the other hand, half of the respondents thought that the initiative would have no advantage for their business,” HSBC Navigator noted.(T2)