He shared these insights while discussing the United States presidential election as well as the global geopolitical and economic turmoil.
"The whole world sees that the global situation is unstable. We must pay attention to the economic strength developments in other countries," he stated at the Presidential Palace in Jakarta on Tuesday.
According to Hartarto, Indonesia and other ASEAN countries depend on consumer markets in Europe, China, and the United States.
"We need to monitor if the world economy returns to its pre-pandemic levels, with economic growth above 6 percent. Currently, the average growth is at 3 percent," he noted.
He emphasized that Indonesia would prepare strategic responses to address the policies of either U.S. presidential candidate.
Hartarto explained that under Joe Biden's leadership, the U.S. is working to bring manufacturing back to American soil. Previously, the U.S. had encouraged manufacturing in Asian countries, including China.
"Now, with Asia's high technological capabilities, especially China's, they want to reduce dependence on Asia," he said.
Consequently, Hartarto noted that the U.S. had issued the Inflation Reduction Act, which addresses critical minerals, among other things.
"Indonesia has begun discussions with the U.S. regarding critical minerals because we are the largest producer of nickel and part of the electric vehicle ecosystem, including anodes," he explained.
Additionally, he observed that U.S. leadership would affect the conflicts in Ukraine and Israel, as both wars impact global prices, particularly oil prices.
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Translator: Rangga Pandu/Andi Firdaus, Resinta S
Editor: Anton Santoso
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