VIVAnews - The Acting Officer for Coordinating Minister for the Economy and the Finance Minister herself, Sri Mulyani, considers the "Buy American" policy will worsen the global economy condition. International trading is predicted to decline even further.
"Buy American" is a policy that has been issued by the American government to encourage its people to buy and use domestic products.
The minister admitted that countries around the world are trying to make policies that prioritize their own economy. But from the discussion amongst the department and at the presidential level, there is a notion that this type of policy will spread out. "Thus, international trade relations will decline and it will make the global economic crisis even worse," said the minister.
Therefore, Indonesia, along with other countries in the Group 20 (G-20) and in a wider forum will try to keep the balance amongst policies which at the present time are more oriented to national importance. A closed national policy will exacerbate the global crisis. The minister said it is important to stay balanced to prevent an even worse situation.
Nevertheless, the minister added that this type of policy will help domestic business. She cited the policy to use local-made shoes that came from the Industry Minister, Fahmi Idris, which will bring positive impact to small- and middle-scale businesses.
"So we just need to find the balance. If the unemployment rate in a country rises from 6 percent to 15 percent, every country will feel heavy political pressure on the president or prime minister, or the economic minister to create an economic stimulus for creating job," said Mulyani.
The perfect balance is to save each one's own economy, yet keeping international trade flowing such that it can be beneficial for all parties. Mulyani said great attention is being paid on that issue.
Related to the policy's impact to Indonesia, she said that if "Buy American" applies to products for making infrastructure that Indonesia is still lacking on the technology, it will have no impact at all.
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Translated by: Ariyantri E. Tarman
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