Indonesia preparing scenarios to anticipate Trump’s policies
6:08 am Friday, November 08th, 2024
JAKARTA (Reuters) – Indonesia has prepared scenarios to anticipate the impact of potential policies from U.S. president-elect Donald Trump, a finance ministry official said on Friday.
The head of the ministry’s fiscal policy agency, Febrio Kacaribu, said the scenarios were designed not only to mitigate negative impacts, but also to find opportunities under a Trump administration.
He did not provide further details.
Trump has proposed a 10% tariff on all U.S. imports and 60% on Chinese-made products, which if enacted would affect the whole economy by pushing consumer prices higher.
Economists say that Trump’s tariff plans, likely his most consequential economic policy, would push U.S. import duty rates back up to 1930s-era levels, stoke inflation, collapse U.S.-China trade, draw retaliation and drastically reorder supply chains.
Indonesia’s finance minister Sri Mulyani Indrawati said in the same press conference that the government would closely monitor the risk of trade wars as countries likely react by imposing higher import tariffs of their own.
Economic indicators suggest Indonesia’s economy remains resilient with strong household consumption and investment, she added.
(Reporting by Stefanno Sulaiman, Writing by Ananda Teresia; Editing by John Mair and Christina Fincher)
