Jakarta. Finance Minister Purbaya Yudhi Sadewa said the government should take advantage of the escalating trade tensions between the United States and China, viewing it as a potential boost for local exporters.

“When China faces a 100 percent tariff, our products automatically become more competitive in the US market. Let them clash, we can benefit from it,” Purbaya said during his visit to the Integrated Physical Inspection Facility (TPFT) Graha Segara at Tanjung Priok Port, North Jakarta, on Monday.

According to Purbaya, trade conflicts between the world’s two largest economies often push both sides to seek new trading partners. This opens doors for Indonesia’s export sector to expand its market reach. He added that the ripple effect could be positive for the Jakarta Composite Index (JCI) as well.

“Logically, it should be a positive sentiment for the Jakarta Composite Index. Maybe some short-term market fears are weighing on it now because the US market fell. But really, that’s their fight, not ours,” he said.

The remarks came after US President Donald Trump threatened to impose a 100 percent tariff on Chinese imports last Friday in retaliation for Beijing’s new restrictions on the export of rare earth minerals, key materials used in electronics, vehicles, and defense technology.

On Sunday, China responded by reaffirming its position. “Our stance remains consistent. We do not seek a tariff war, but we are not afraid of one,” said a statement from the Chinese Commerce Ministry. It was the country’s first official comment since Trump’s new tariff warning, which could take effect on Nov. 1.

Trump later struck a milder tone without backing down from his demands, while his vice president warned Beijing against responding aggressively.

“Don’t worry about China, it will be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The USA wants to help China, not hurt it!!!” Trump wrote on Truth Social.

China currently produces nearly 70 percent of the world’s rare earth minerals and controls around 90 percent of their global processing capacity. The materials are critical for making jet engines, radar systems, electric vehicles, and consumer electronics such as laptops and smartphones.

China’s export controls have disrupted global manufacturing, particularly in Europe and the United States.

Data from the Central Statistics Agency (BPS) show Indonesia recorded a trade surplus of $10.13 billion with the United States between January and August 2025, the country’s largest surplus partner. Key non-oil and gas commodities contributing to the surplus included electrical machinery and equipment ($3.07 billion), knitted apparel ($1.86 billion), and footwear ($1.82 billion).

Conversely, Indonesia booked a $14.32 billion trade deficit with China during the same period, with exports totaling $40.44 billion and imports $54.76 billion. The main deficit-driving commodities were mechanical machinery and parts ($12.51 billion), electrical machinery and parts ($11.25 billion), and vehicles and parts ($3.04 billion).