KUALA LUMPUR, May 11 (Bernama) -- Late selling pressure dragged Bursa Malaysia into negative territory at the close, reversing earlier gains as profit-taking in heavyweight banking and transportation counters dampen overall market sentiment. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.75 points to 1,745.31 from Friday’s close of 1,748.06. The benchmark index, which opened 5.94 points firmer at 1,754.0, moved between 1,744.99 and 1,754.0 during the trading session. Market breadth was positive with gainers leading losers 562 to 558. A total of 636 counters were unchanged, 897 untraded, and 12 suspended. Turnover increased to 4.20 billion units worth RM3.17 billion compared with 3.31 billion units worth RM3.00 billion on Friday.
Indonesia is bracing for global trade disruptions caused by US President Donald Trump’s aggressive tariff policies, seeking to diversify its markets and protect local industries amid rising protectionism.
🌏 Indonesia’s Strategy: Expand Markets, Protect Local Trade
🔹 Indonesia aims to leverage the US-China tariff war by expanding its market share if Chinese goods face higher US tariffs.
🔹 The country is also reinforcing local industries, particularly the textile sector, which has been hit by cheap imports and illegal shipments.
🔹 New trade agreements are in the works to secure alternative markets, with Peru, Canada, the EU, and India on the priority list.
💬 Deputy Trade Minister Dyah Roro Esti Widya Putri:
"We do not want to act too hastily on import regulations, but we will ensure policies are in Indonesia’s best interest."
🚨 Trump’s Tariffs: A Wake-Up Call for Global Trade
📌 Trump’s new tariff threats have put Indonesia on high alert:
- Tariffs could hit BRICS nations, including Indonesia, though no direct action has been taken yet.
- Canada, China, and the EU are also pushing back, holding talks with US officials to prevent trade disputes.
- Indonesia is preparing contingency plans in case US market access is restricted.
💬 Roro: "If extreme tariffs are imposed, we will explore other markets in Asia, Africa, and Europe."
🤝 New Trade Deals to Secure Exports
🔹 Indonesia is actively negotiating Comprehensive Economic Partnership Agreements (CEPAs):
- Peru: Deal expected to conclude this year.
- Canada: Talks progressing steadily.
- EU: Challenges remain, particularly over climate and deforestation laws, but discussions are reopening.
- India: Strengthening bilateral ties following President Prabowo’s visit to Delhi.
📌 Why It Matters: These agreements will help reduce dependence on the US and fortify Indonesia’s export-driven economy.
🛑 Protecting Indonesia’s Local Industries
📉 Indonesia’s garment industry is struggling, losing at least 80,000 jobs in 2024 due to an influx of cheap, often illegal imports from China.
🔹 PT Sri Rejeki Isman, a textile giant, furloughed 3,000 workers after bankruptcy.
🔹 The government is ramping up enforcement, collaborating with customs, law enforcement, and military forcesto clamp down on non-compliant imports.
💬 Roro: "Illegal imports come from multiple countries, not just China. We are actively addressing this issue with stronger oversight."
🔍 What’s Next?
✔️ Meeting with the US ambassador next week to discuss trade relations.
✔️ Fast-tracking negotiations with the EU and Canada to finalize trade agreements.
✔️ Enhancing enforcement measures to safeguard domestic industries from unfair competition.
Indonesia’s approach reflects a delicate balance between global trade expansion and national economic protection, ensuring that it remains competitive while shielding its industries from external shocks.
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