"In fact, during Trump's first term, our trade was on the rise," Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso stated at the launch of the USABC Sector Overview Report on “Navigating Opportunities: Nurturing Dynamic Economic Policies in Indonesia" here on Tuesday.
In October 2024, the value of Indonesia's trade with the US reached USD13.55 billion, compared to USD34.5 billion in August 2024.
According to Moegiarso, the US remains a key trading partner for Indonesia, with a notable trade surplus.
However, he also underscored the need to remain alert about the US tariff policy that could potentially be imposed on China.
In addition, he highlighted the potential challenges related to the electric vehicle (EV) tariff and subsidy policies planned by Trump, which could have an impact on Indonesia's EV and automotive industries.
Moegiarso affirmed that his ministry is currently holding discussions with stakeholders, including the Ministry of Foreign Affairs, to mitigate the impacts of the policies.
The government is reviewing strategies to ensure that Indonesia remains an attractive investment destination amid changes in US policies.
Furthermore, Moegiarso highlighted that the uncertainty of tariff policies in Trump's second term could affect global capital flows, especially investment yields.
Nevertheless, he assessed that the steps taken by Bank Indonesia (BI) and the Ministry of Finance in maintaining competitive interest rates could encourage investment stability.
Meanwhile, BI has lowered its benchmark interest rate, or BI-Rate, to 5.75 percent.
"The main aspect that we must anticipate in the change to a new government in the US is our outflow," he remarked.
Deputy Director of the University of Indonesia's Institute for Economic and Social Research, Fachrul Rezki, advised that the Indonesian Government should adopt a cautious yet strategic approach in addressing the change of government in the US.
It is deemed necessary for the government to navigate US trade and investment policies under Trump's leadership.
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Translator: Bayu Saputra, Raka Adji
Editor: Rahmad Nasution
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