12/08/2016

China will affect Indonesia economy growth more than USA in 2017


China will affect Indonesia economy growth more than USA in 2017

The changing of economy policy of china and USA will affect the stability of indonesia economy in 2017. Minister of national development plan(BAPPENAS) bambang brodjonegoro said the risk will be more coming from china's changing policy based economy from investment to consumption in 2017. China takes the step to anticipate the increase of foreign loans while the extreme policy of USA economy under donald trump will not supersede the risk to affect from china. 

Bappenas overviews the sluggish of china economy in 2017 at rate 6.3% from 6.6% in 2016 will contribute -0.72% to indonesia economy from baseline. This is mostly because china will be more prudent on the increase of debt of government and private sectors on the other hand china its self is the biggest target of trade of indonesia especially commodity sectors.


While USA under trump will release the policy of tax amnesty and protection by applying 34-35 for the trade with china and  mexico. This policy will be project to affect the slowdown of USA economy and globally term thus implying on the indonesia sluggish economy growth.

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