"Indonesia needs to keep watch on the high dynamic of trade between west countries and China, which may lead to a spillover," she said at the parliament building here on Monday.
The upheaval may lead to a change in several indicators and may eventually put pressure on the national economic growth, she said.
"We are confronted with changing global atmosphere. It has an impact on a rise in exchange rate and that pressure on economic growth will likely be inevitable," she said.
She further noted that the global situation currently experiences new normal condition which leads to a rise in interest rate and uncertainty due to tariff war and a change in oil prices.
The adjustment resulting from the improving US economy will still continue. The reaction from other countries affected by the US trade policy has already started, she said.
"(US President) Trump) may any time issue a statement which may change global economic policies. In fact, he also has asked his team to review principles at WTO," he said.
Sri Mulyani said the market will no doubt accept the several conditions. All the situations will last until next year or until the market accepts all cycles of the Fed Rate hikes in a normal way.
Hence, the government will continue to protect the Indonesian economy against the derivative impact of the measure in the long run, she said.
Reported by Calvin Basuki
(T.S012/B/KR-BSR/B/O001)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
