INTERNATIONAL MARKETING

MANAGEMENT

MILLENNIA ANSTANDI
C13170059
PETRA CHRISTIAN UNIVERSITY
2018
 TRADE WAR

China and the United States are locked in an ongoing trade war as each country has
introduced tariffs on goods traded with the other. US President Donald
Trump had promised in his campaign to fix China's "longtime abuse of the broken
international system and unfair practices". Starting in January 2018 the U.S imposed a
tariff on solar panel imports, most of which are manufactured in China. On July 6, the
U.S. specifically targeted China by imposing 25% tariffs on $34 billion of imported
Chinese goods as part of Trump's tariffs policy, which then led China to respond with
similarly sized tariffs on U.S. products. A tariff on an additional $16 billion of
Chinese imports was added in mid August, with China responding proportionately. A
further tariff on $200 billion of Chinese goods is to go into effect on September 24, to
which China plans to respond to with tariffs on $60 billion of US goods. The Trump
administration said the tariffs were necessary to protect intellectual property of U.S.
businesses, and to help reduce the U.S. trade deficit with China.

 RESPONSE TO TRADE WAR

On Indonesia views, it’s better to be seated back and do not do anything harmful to
the relation between China and U.S because Indonesia don’t have enough power to
fight back the trade war and can be easily lost if we join the trade war.

 HOW TO MARKET INDONESIAN PRODUCTS?

Find another substition material which good enough to replace the ‘tariff’ material. If
we don’t find another material, last option is raising the price of the product, but
raising it slowly without hitting them all at once.

 WHAT SERVICES DO WE IMPORT? WHY?

I think for now it’s better to find a good lecturer from good university from other
country. It’s because to be able to fight back the trade war we need to have smart
labours and citizens, and most of great lecturers comes from other developed country.
 MIDTERM

1. WHAT ARE THE INDONESIAN STRENGTH IN TRADE

We have many natural resources like copper mines, gold mines, tin and sulfur
mines, palm, rubber, cocoa, spices, fruits, oils, marine life, and many more.
However, these resources are not managed well so, compare to other developed
country like Singapore, Japan, and else, Indonesia which is rich by nature
resources turns out more poor than those country. The worst thing is Indonesia
isn’t smart enough to produce those resources into useful things. Indonesia is
exporting those raw resources to country that can produce things and Indonesia
is importing the useful product back and pays more money to them. Based on
World Integrated Trade Solution, the most exported goods come from fuels
(27,874,676), vegetables (23,929,188), and mach and elec (13,594,209). Most
of resources are exported to China with trade value $ 16,785,585 and share
11,62%. It’s an opportunity to export to China because China and Indonesia are
not in trade war, but the second largest export goes to United States, it’s quite
risky because U.S is implementing a trade war so the exported goods can be
charged with tariffs.

2. WHAT ARE THE INDONESIA POSITION IN GLOBAL TRADE

Based on World Integrated Trade Solution, Indonesia is on number 32 at the
Top Importers with $122,460,264 and on number 28 at the Top Exporters with
$153,985,590. The engineering content which being exported are machine and
electrical goods. In 2016, Indonesia exports the most to China with
$30,800,448. We are importing machine and electrical goods the most from
China with trade value $13,680,773.

3. WHICH COUNTRIES ARE THE TOP 5 COUNTRIES WE ARE

EXPORTING AND IMPORTING
The top 5 countries we are importing are China, Singapore, Japan, Thailand,
and United States. Top 5 countries we are exporting are China, United States,
Japan, Singapore, and India. These are the top 5 products we export and import:
 There is posibility that we will export parts of electrical, spelt, and raw cane
sugar because we have the material to produce electrical and we are
archipelago country and we located on the equator so we can easily plant those
type of plants.

4. TRADE PROFILE OF INDONESIA

Based on this data, Indonesia has progressed in exports from 2016 and 2017,
the most exported goods come from Industrial Sector with 11.642,90 (in milion
USD)
Based on the data, Indonesia importations increasing significantly from the
2016 and 2017, the most importations happen in July 2018 with total of
18.297,10 (in milion USD).
US:
TIONGKOK (CHINA):

JAPAN:
 EUROPE (2016):

5. TRADE WITH ASEAN COUNTRY

SOUTH ASIA:

EAST ASIA:
 Most balance trade with indonesia is Singapore and Myandmar but the most
unbalance is Vietnam.
TRADE PERFORMANCE OF INDONESIA IN 2018

6. There must be a balance because we need to trade easily and without war. as
far as I know, the trade war happen because of tariff which raised by the each
countries. The world is going to find another ways to avoid the trade war with
using substitutions goods or materials.
7. WHAT ARE THE ENGINEERING SIDE OF TRADE
Some countries are well developed in technology so they are in advantages.for
example, Japan, South Korea, China, and United States, the products are like
phone, robot and many more. How to reach high technology is by learning
from another well developed country and have a good relation with those
countries.
8. HOW SHOULD INDONESIA PREPARE
Most of indonesia exportation are natural resources, if we want to survive we
need to manage our resources well. Can we trade Rupiah? No, because
nowadays the US dollar are increasing rapidly and it’s quite hard for rupiah to
follow the USD.