Impact of the Taiwan-China War on Indonesian Trade

Abstract

Risks of China versus Taiwan War Indonesia needs to be aware of the tension between China and Taiwan, which has heated up again after being triggered by Nancy Pelosi's trip to Taiwan as chairman of the US House of Representatives (DPR), the conflict between the two could have an impact on trade performance, tensions between China and Taiwan are also now isattracting the attention of the world. This geopolitical conflict needs to be watched out for by Indonesia, considering that China-Taiwan has been Indonesia's important trading partner in the last two decades because it will have an impact on Indonesia's trade and good relations with the two countries; Indonesia needs to minimize trade risks due to the conflict between the two countries by looking for export destinations. as well as sources of imports from other countries. China is Indonesia's leading trading partner, with an international trading contribution of more than 20% in 2021. This contribution places China as Indonesia's number 1 export destination with an export value of USD 53.8 billion. In the same year, China was also the most significant import destination country, with an import value of USD 56.3 billion. Indonesia's trade with Taiwan also continues to grow every year. In 2021, Indonesia's exports to Taiwan were worth USD 7.0 billion, placing Taiwan as the ninth largest export destination for Indonesia.