Jakarta (ANTARA) - Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan emphasized that the Indonesian Government should beware of the impact of the United States (US) protectionist policies after Donald Trump won the presidential election.
According to Pandjaitan, the protectionist policies could potentially bolster the US dollar under Trump's administration, consequently exerting downward pressure on the Indonesian rupiah.
"The impact of Trump's second term of office may bring global economic slowdown, lower global GDP, and increase global inflation. With the strengthening of the US dollar, our rupiah will be affected," he remarked during a public lecture in Jakarta on Monday.
Pandjaitan recommended that Indonesia adopt a strategic and diplomatic approach with the United States to mitigate potential economic challenges. He characterized Trump as a pragmatic political leader who would assertively respond to any policy concerning his strategic interests.
On the same occasion, Pandjaitan also drew attention to the US Department of Government Efficiency (DOGE), which will be led by Elon Musk.
According to the minister, the department's formation reflects Trump's determination to cut unnecessary sectors from his government, for which Indonesia must take requisite anticipatory measures.
"Musk will probably cut the US budget amounting to USD2 trillion. There will be a lot of efficiency," Pandjaitan stated.
Meanwhile, Bank Mandiri Chief Economist Andry Asmoro outlined several risks to the Indonesian economy when Trump wins the US election.
He affirmed that the direction of Trump's policy, which emphasizes the "American First Policy," will tighten trade policies and extend the trade war with China. This is feared to suppress the global economy and impact Indonesia.
"Apart from the protectionist policies, the trade war will also be getting tougher compared to Joe Biden's administration," Asmoro pointed out.
Furthermore, he highlighted the potential for a slowdown in energy transition policies under Trump's leadership.
He noted that policies related to climate change will receive less support, which could slow down global energy transition efforts.
Asmoro cautioned that this is a major concern for Indonesia, which is actively accelerating energy transition with international assistance.
Pandjaitan signals economic alarm over Trump's protectionist policies
Senin, 2 Desember 2024 16:45 WIB
Chairman of the National Economic Council, Luhut Binsar Pandjaitan, during a public lecture in Jakarta on Monday (December 2, 2024). (ANTARA/Bayu Saputra/rst)
