Finance Minister Sri Mulyani Indrawati said the international trade commitments still required each state to restore economic performance in the face of global uncertainty.
“International trade is still an important thing in fostering economic recovery,” she said, in response to a failure to achieve an agreement on international trade at the G20 in Jakarta, Wednesday (22/3).
Sri Mulyani, who recently attended a meeting of Finance Ministers and Central Bank Governors of the G20 in Germany, said finance ministers from member countries in Europe, Asia, and Latin America, realizing the bad effects of protectionism.
For that, she said, although there is no agreement on the importance of keeping the global rules-based world trading in a meeting in Germany, the G20 communique forum on international trade could be approved soon.
“They hope that the G20 be able to give a commitment, because protectionism could lead to trade wars and currency impact is destructive. Not only to the G20 countries, but also to all the countries,” she said.
Sri Mulyani expect, the discussion of international trade commitments can be agreed upon in the G20 meeting the leadership level, because this cooperation is very important to encourage the performance of the global economy.
“Therefore, the ‘tone’ is strived for more positive direction in the upcoming meeting. So that the policy cooperation and commitment to keeping international trade open and fair, will be done, ” she said.
In a meeting of G20 level leaders, Indrawati said Indonesia will articulate the importance of international economic policy, because the export sector is one contributor to national economic growth.
“Indonesia is an open country and the export is a source of economic growth. Thus, we expect the international trade remains open, and Indonesia could conduct trade was based on our competitive level, ” she said.
According to Sri Mulyani, one way that could boost export performance is to strengthen bilateral relations to open new markets, and no longer rely on conventional purposes, such as China and the United States.
“We hope that Indonesia opening up new markets. Many opportunities exist among the G20 non-US because we have trade channels directly enough. We must strengthen our bilateral relations with the still ‘open’, including the US, despite the policy of ‘trade’ AS uncertain , ” she said.
International trade issues could be discussed in the G20 meeting in Baden-Baden, Germany, 17 to March 18, 2017, because of this commitment is important to avoid a devaluation of the exchange rate for the sheer purpose of trade competition of each country.
However, that commitment can not be agreed upon. Thus sending a signal, a globally binding rules no longer be the basis of economic and trade relations world.
Thus, a strong state can dictate and dominate the relationship according to their own interests and not the collective agreement.
Although communique trade area agreement is not reached, the G20 Summit is able to reinforce the commitment to support the growth strategy that is more robust, sustainable, balanced and inclusive, to maintain the momentum of global growth in the long term.