Indonesian businesspeople reject US move against Turkey

Indonesian entrepreneurs expressed their regret over the U.S.’ decision of imposing extra tariffs on various products, including aluminum and steel from Turkey.

“The business community here regretted the tax barrier from the U.S. That is totally wrong,” said Bawazeer in a news conference at the annual session of the Islamic Chamber of Commerce, Industry and Agriculture (ICCIA) in Jakarta on Tuesday.

According to him, the decision would trigger a retaliation by the affected countries.

So far, the weakening of the lira has had no direct impact on Turkey’s export-import activities because of its strong economic fundamentals.

Bawazeer considered Turkey as a powerful country in various fields, including technology, science, military equipment and energy.

“As for economy, I am sure they will be affected, but Turkey will remain strong as it has powerful military and energy sectors,” he said.

Turkey has consistently built its economic fundamentals for the sake of European Union accession process.

As the talks on Turkey’s accession are currently in a deadlock, Turkey is continuing its business cooperation with Middle Eastern countries.

"Turkey's economic fundamentals will remain the strongest in the Middle East," he said.

While Turkey remains strong, Bawazeer noted that weakening of the lira will have a global impact, even the U.S. will be affected.

Rosan Roeslani, chairman of Kadin, said that as the Turkish lira weakened, there was pressure on the foreign exchange market.

The weakening of the Indonesian rupiah is mainly due to the current account deficit.

“Bank Indonesia has taken good steps, but the Fed is expected to raise interest rates twice more this year, so our cost of fund will also increase,” Roeslani explained.

He also said that the best way to handle the current situation is that Indonesia must cut its trade deficit by increasing exports.

According to Roeslani, Kadin will gather entrepreneurs to discuss global economic conditions.