Indonesia should be wary of China’s economic slowdown as about 65% of Indonesian exports consist of raw commodities, thus leaving the country vulnerable to the global market correction in commodity prices.
The recent boom in commodity prices, driven by insatiable demand from China, is just a memory now, as manufacturing slows in China and Beijing starts to adjust its economic strategy.
“Changes in China’s economy would have a real and direct impact on Indonesia,” DBS economist Eugene Leow said in Jakarta, noting that China accounted for about 10% of all Indonesian exports. Some other economists put the figure closer to 14%.
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.