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Indonesia’s Trade Dynamics with China: Impacts, Challenges, and Policy Responses

Organizer: ISEAS – Yusof Ishak Institute

Type/Location: Virtual

Description:

China’s rapid integration into the global economy has been one of the most transformative developments in recent decades. Leveraging its vast labor force, abundant resources and sustained growth, China’s emergence as a global trading powerhouse has generated wide-ranging economic repercussions worldwide.

This webinar examines how Indonesia’s economy has been shaped by its deepening trade relationship with China, particularly following the implementation of the ASEAN–China Free Trade Agreement (ACFTA). Since then, Indonesia’s trade with China has expanded sharply, making China its largest trading partner in both exports and imports.

As a developing economy, Indonesia faces complex structural adjustments. Import-competing sectors have come under increasing pressure while export-oriented industries, particularly those linked to natural resources, have benefited from access to China’s vast and growing market. The shifting global trade landscape, including recent geopolitical tensions and tariff policies such as those introduced during the Trump administration, has further intensified these dynamics.

The discussion will also highlight Indonesia’s policy responses to rising import competition and present findings from a district-level analysis of trade shocks and poverty outcomes during the ACFTA period.

About the Speaker:

Dr. Deasy Pane is a Wang Gungwu Visiting Fellow at ISEAS – Yusof Ishak Institute, an Economist at Indonesia’s National Development Planning Agency (BAPPENAS), and a Senior Fellow at the Center for Indonesian Policy Studies (CIPS).

Registration:

To attend the event virtually, please register here.

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