The United States–China Trade War and Its Implications for Rupiah Fluctuations and Foreign Investment Inflows in Indonesia

Authors

  • Salsabila Dwi Fitri Universitas Jambi, Jambi, Indonesia
  • Yorasakhi Ananta Universitas Andalas, Padang, Sumatera Barat, Indonesia

DOI:

https://doi.org/10.38035/sijal.v1i2.157

Keywords:

US–China Trade War, Rupiah Exchange Rate, Foreign Investment, Indonesian Economy

Abstract

The Role of the United States–China Trade War and Rupiah Exchange Rate Fluctuations on Foreign Investment Inflows in Indonesia is a scientific article of literature study in the scope of international law and political economy. The purpose of this article is to build a hypothesis of the role between variables that will be used in further research. The research objects are online libraries, Google Scholar, Mendeley, and other academic online media. The research method uses a library research approach sourced from e-books and open access e-journals. The analysis is carried out descriptively qualitatively. The results of this article show that: 1) The United States–China trade war plays a role in foreign investment inflows in Indonesia through changes in the direction of global investment flows; and 2) Rupiah exchange rate fluctuations play a role in foreign investment inflows through increasing perceptions of domestic economic risk.

References

Bank Indonesia. (2023). Statistik Nilai Tukar Rupiah terhadap Dolar AS. Retrieved from https://www.bi.go.id

Frank, A. G. (1969). Capitalism and Underdevelopment in Latin America: Historical Studies of Chile and Brazil. Monthly Review Press.

Hasan, S., & Nur, M. (2019). Exchange rate volatility and its impact on foreign direct investment in emerging markets. Journal of Economic Studies, 46(3), 546–560. https://doi.org/10.1108/JES-07-2017-0154

Investment Coordinating Board (BKPM). (2023). Laporan Investasi Asing Indonesia 2018-2023. Retrieved from https://www.bkpm.go.id

International Monetary Fund (IMF). (2023). World Economic Outlook: A Survey by the Staff of the International Monetary Fund. Washington, D.C.

Kim, D. (2019). The US-China trade war and its implications for global supply chains. Journal of International Business and Economics, 7(1), 23–40.

Lin, C., & Lee, C. (2020). The impact of US–China trade war on ASEAN investment patterns. Asian Economic Policy Review, 15(2), 98–113. https://doi.org/10.1111/aepr.1221

Nasution, M. (2018). The effect of exchange rate fluctuation on foreign direct investment: The case of Indonesia. Asian Economic and Financial Review, 8(9), 1154–1164.

Rahmadani, N. (2021). Foreign direct investment in Indonesia: Between policy incentives and global uncertainty. Journal of International Economics, 58(4), 1120–1133. https://doi.org/10.1016/j.jinteco.2021.04.004

Siregar, R., & Wahyudi, M. (2020). The impact of global geopolitical tensions on foreign investment in emerging economies. Journal of Global Economics, 11(2), 178–192.

Downloads

Published

2025-04-18

How to Cite

Fitri, S. D., & Ananta, Y. (2025). The United States–China Trade War and Its Implications for Rupiah Fluctuations and Foreign Investment Inflows in Indonesia. Siber International Journal of Advanced Law (SIJAL), 1(2), 61–65. https://doi.org/10.38035/sijal.v1i2.157

Issue

Vol. 1 No. 2 (2023): Siber International Journal of Advanced Law (October - December 2023)

Section

Articles

License

Copyright (c) 2025 Salsabila Dwi Fitri, Yorasakhi Ananta

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright :

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. Copyright in each article belongs to the author.
  2. The author acknowledges that the Siber International Journal of Advanced Law (SIJAL) has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
  3. Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at SIJAL.