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If Europe Lockdown Again, Indonesia Hopes It Won’t Interfere With Their Exports

Indonesian exports decreased during the coronavirus pandemic
Indonesian exports decreased during the coronavirus pandemic

Jakarta – A number of European countries are planning to carry out regional closures or lockdowns to prevent the second wave of transmission of the coronavirus (Covid-19). Director General of Foreign Trade, Didi Sumedi, hopes that the closure of Europe will not disrupt exports.

Didi said lockdowns usually focus on limiting the movement of people, the majority of whom use air transportation. “Hopefully it won’t affect our exports, because most of them are exported to Europe via sea cargo,” said Didi when contacted by Kontan.co.id, Thursday (24/9).

Even so, business actors still express concerns. Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for International Relations Shinta Widjaja Kamdani said “that the lockdown would create negative risks for Indonesian trade.”

The reason is, during lockdown there will be a risk of decreasing demand from that country. In fact, in the last few months, the demand has shown an increase again.

Apart from the problem of falling demand, Shinta is also worried about problems in the export logistics flow. This happened in March-April when Europe went into lockdown for the first time.

“If the lockdown in the destination export country will disrupt international and internal logistics activities in that country,” explained Shinta.

Asking Indonesia To Communicate With European Countries

Economic relations between Indonesia and Europe
Economic relations between Indonesia and Europe

Even so, Shinta is optimistic that the impact resulting from this lockdown will not be as bad as before. A number of countries have re-opened activities such as China, Korea and Japan which are also Indonesia’s largest trading partners.

In addition, lessons from the lockdown first will make the logistics run more smoothly this time. However, Shinta asked the government to communicate with the countries that were going to carry out the lockdown.

“We hope the government will continue to approach partner countries that are carrying out lockdowns in order to ensure the smooth running of trading activities,” he said.

Shinta hopes that with the tightening, there will be no additional costs imposed on business actors. So that it has an impact on trade efficiency with that country.

Also read another article about Omnibus Law Becomes A Scenario To Save Indonesia’s Economy From A Crisis.

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