World Economy

Openness in global trade is 'very critical' to worldwide growth: Indonesian minister

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Key Points
  • Amid trade tensions between the U.S. and China, Indonesia continues to champion open global trade.
  • Speaking with CNBC, Bambang Brodjonegoro, Indonesia's minister of national development planning, said openness in global trade is "very critical" for both global and national economic growth.
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'The benefit of the TPP is the access to the US market': Indonesian minister

As the U.S. and China sit down for a round of talks to discuss recent trade disputes between the two countries, Indonesia is continuing to champion open trade between nations.

Speaking with CNBC's Oriel Morrison, Bambang Brodjonegoro, Indonesia's minister of national development planning, said openness in global trade is "very critical to the global growth as well as the national economic growth (of Indonesia)."

"Any effort to disrupt or to reduce the openness of trade, I think, will have negative impact," he said. "We have very high concern and we still keep promoting, you know, more openness in our economy."

Brodjonegoro said Indonesia is "trying to open" relations through trade agreements with its neighbors in Asia as well as Europe, with a focus on the Regional Comprehensive Economic Partnership (also known as RCEP) and the European Union.

The minister also weighed in on the Trans-Pacific Partnership, a massive trade agreement from which the United States withdrew. He said the appeal of potentially joining the deal for his country was in large part due to American involvement.

"The benefit of the TPP is the access to the U.S. market," he said. "If the U.S. is not there, then the relationship with the other members of TPP can be facilitated through RCEP."

Nevertheless, the remaining members of the TPP were able to come to an agreement for a new version: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

But, for Indonesia, RCEP remains a focus, Brodjonegoro added.

"With the latest situation on the trade war, I believe the urgency to finish the agreement on RCEP will be very critical for everybody and I think everybody (is) trying to speed up the negotiation," he said.