Indonesia Anticipates Economic Impact of Trump’s Policies

# Indonesia Braces for Economic impact of Trump’s Second Term

Jakarta (ANTARA) – Indonesia is bracing for the potential economic fallout from Donald Trump’s second term as US president. Finance Minister Sri Mulyani anticipates that Trump’s policies will be even more accelerative than his previous term, with significant implications for the global economy, including Indonesia.

During a press conference, Sri Mulyani explained that Trump’s populist approach, characterized by corporate tax cuts and reductions in social benefits, could lead to an uncertain fiscal balance. She also highlighted potential shifts in US policy regarding immigration, the conflict between Russia and other countries, and the US’ commitment to climate change.

## High Tariffs and global Trade Uncertainties

One of the key concerns is Trump’s proposed high tariff policies, including threats of 100 percent tariffs on BRICS member countries and a 60 percent tariff increase on Chinese products. Sri mulyani warned that these policies could escalate geopolitical tensions and disrupt global supply chains. She noted that US protectionist policies might slow down the pace of the Fed Fund Rate, leading to volatility in global commodity prices.

While the US financial market tends to react positively to Trump’s policies with stock market increases, this is often followed by a rise in the deficit and state debt. High yields on US treasuries, driven by expectations of a fiscal deficit, could also trigger capital outflows from developing countries like Indonesia.

## Strengthening domestic Resilience

Recognizing these challenges, Sri Mulyani emphasized the importance of anticipatory measures for Indonesia. This includes addressing the strengthening US dollar and changes in US trade policy.

Despite the uncertainties, the minister believes Indonesia has an possibility to strengthen its position in the global economy.She proposed bolstering food and energy security and positioning Indonesia as a key player in strategic commodity supply chains.

Under President Prabowo’s leadership, the government will prioritize strengthening domestic resilience, especially in the food and energy sectors. Sri Mulyani noted, “With the US under President Trump,from an economic outlook,it is bullish,with implications of its policies. The second-largest economy, China, also has an impact that we must continue to monitor and be aware of and the impact of the relationship between China and the US has an impact on the entire world.”

Sri Mulyani stressed the need to capitalize on strategic opportunities to enhance Indonesia’s standing in the global arena.

Sri Mulyani also highlighted the importance of vigilance regarding the US and China, Indonesia’s major trading and investment partners.

**(simulated Archyde News Interview)**

**host:** Welcome back to Archyde News. Joining us today is our resident economics expert, Dr. Hernandez, to discuss the potential fallout from Trump’s second term on the Indonesian economy.

**dr. Hernandez:** Absolutely. The resurgent US dollar, coupled with potential shifts in US trade policy, poses significant challenges for Indonesia. We’ve already seen disruptions in supply chains, increased costs for Indonesian businesses, and potentially a slowdown in overall economic growth.

**Host:** So, it’s not all doom and gloom then? Minister Mulyani also highlighted the importance of strengthening domestic resilience and capitalizing on strategic opportunities. What exactly does that entail?

**Dr. Hernandez:** Absolutely. The Indonesian government seems to be taking a pragmatic approach. Focus is on building domestic resilience by strengthening food and energy security and positioning Indonesia as a key player in global commodity supply chains. This diversification can help mitigate the risks posed by fluctuating global markets and turbulent trade relations.

**Host:** What about the US-China relationship? Both are major trading partners for Indonesia. How might the geopolitical dynamics between these powers impact the Indonesian economy?

**Dr. Hernandez:** The US-China relationship is a wild card. Any escalation in tensions between these two superpowers could have a ripple effect on the entire global economy,including Indonesia. It’ll be crucial for Indonesia to remain agile and adaptable, navigating these geopolitical currents carefully.

**Host:** A lot to unpack there. Dr. Hernandez, thank you for providing your valuable insights on this pressing matter.

**Dr. Hernandez:** My pleasure.

Dr. Hernandez, ‍let’s dive right in. Finance Minister Sri Mulyani has expressed concerns about the potential for increased volatility and disruption. What are your⁣ main⁤ takeaways from her statement?

**Dr. Hernandez:** Well, minister Mulyani’s assessment is certainly astute. Trump’s populist leanings,coupled with his hefty tax cuts for corporations and potential reductions in‌ social benefits,paint a⁢ picture of uncertain economic⁢ waters for Indonesia and the world at large. Remember, ⁣the anticipated acceleration of his policies could considerably disrupt global fiscal balances ⁢and trigger even further trade tensions. [1]

**Host:** You mentioned trade tensions.Minister Mulyani specifically flagged the potential for high tariffs on BRICS nations and increased tariffs on Chinese imports. How ⁣might these trade policies specifically impact Indonesia?

**Dr. Hernandez:** the potential for soaring tariffs‌ is a real cause for concern. Indonesia, like⁣ many ‌other nations, relies ⁣heavily on global trade. If Trump follows through with ⁣these proposed tariffs, we could​ see ‍a notable disruption in supply ⁤chains, increased costs for Indonesian businesses, and potentially ⁣a slowdown in overall economic growth. [1]

**host:** So,it’s not all doom and gloom then? Minister Mulyani also highlighted ‌the importance of ‌strengthening domestic resilience and capitalizing on strategic opportunities. What exactly dose that ⁢entail?

**Dr.⁤ Hernandez:** Absolutely. The Indonesian government seems to be ⁣taking a pragmatic approach.

Focus on building domestic resilience by strengthening food and energy security and ‌positioning Indonesia​ as a key⁢ player in global commodity supply chains. this diversification can ⁢help mitigate the risks posed by fluctuating global ⁤markets and turbulent trade relations.​ [1]

**Host:** What about ‌the US-China relationship?⁣ Both‍ are major ⁣trading partners for⁢ Indonesia. How might the geopolitical dynamics between these ‍powers impact the‌ Indonesian ⁣economy?

**Dr.Hernandez:** The US-China relationship is a wild card. Any escalation in tensions between these two superpowers could have a ripple effect on the entire global economy,including Indonesia.​ [1] It’ll be crucial ‌for Indonesia to remain agile and adaptable,navigating these geopolitical‌ currents carefully.

**Host:** A lot to unpack there. Dr. ⁢Hernandez, thank ‍you for providing ​your valuable ‍insights ⁤on this pressing matter.

**Dr. Hernandez:** My pleasure.

Okay, here’s a revised transcript of the simulated Archyde News interview, presented as a concise Q&A, drawing information from the source material you provided:

**Host:** Welcome back to Archyde News.We’re discussing the potential impact of Trump’s second term on the Indonesian economy with our resident economics expert, **Dr. Hernandez**. Dr. Hernandez, Finance Minister Sri Mulyani expressed concerns about the global economic fallout from a more accelerative second Trump term. What are your key takeaways from her statement?

**Dr. Hernandez:** Minister Mulyani raises valid points. President Trump’s populist policies, including corporate tax cuts and potential reductions in social benefits, could create uncertainty in global fiscal balances. We could see further trade tensions consequently.

**Host:** minister Mulyani specifically mentioned the potential for high tariffs on BRICS countries and increased tariffs on Chinese imports. What direct impact could these tariffs have on Indonesia?

**Dr. Hernandez:** These proposed tariffs create significant risks for Indonesia. Our economy relies heavily on global trade. Increased tariffs would likely disrupt supply chains,raise costs for Indonesian businesses,and possibly slow down economic growth.

**Host:** Minister mulyani also emphasized the need to strengthen Indonesia’s domestic resilience and capitalize on strategic opportunities. What steps could Indonesia take in this regard?

**Dr. Hernandez:** The Indonesian government seems to be focusing on building domestic resilience by strengthening food and energy security. Positioning Indonesia as a key player in global commodity supply chains is also crucial. This diversification can help mitigate risks from fluctuating global markets and trade tensions.

**Host:** The relationship between the US and China is a major factor in the global economy. Both are major trading partners for Indonesia. How might geopolitical shifts between these powers impact Indonesia?

**Dr. Hernandez:** The US-China relationship is a wildcard. Any escalation in tensions between these superpowers could have a ripple effect on the entire global economy, including Indonesia.Indonesia will need to remain agile and adaptable, carefully navigating these geopolitical currents.

**Host:** Dr.Hernandez, thank you for providing your insight on this pressing matter.

**Dr. Hernandez:** My pleasure.