BRI Boss Explains Impact of Donald Trump Winning US Presidential Election on Indonesia’s Economy

Jakarta –

The President Director of PT Bank Rakyat Indonesia (Persero) Tbk or BRI, Sunarso, explained the impact of Donald Trump‘s victory in the United States (US) presidential election (Pilpres) on the Indonesian economy.

Sunarso said Trump’s America First policy would tend to be more protectionist. This is likely to increase inflation and is followed by an increase in interest rates by the Central Bank of the United States (US), the Federal Reserve (The Fed).

“There are those who say that President Donald Trump is not so innocent, but we are talking about analyzing his movements, if he is more defensive it is likely that inflation will increase the that and the Fed will likely respond to inflation again. raising interest rates,” said Sunarso at the meeting. Hearing (RDP) with Commission VI DPR RI, Central Jakarta, Wednesday (13/11/2024).

“The question is if inflation happens because of being too protective, will the response be with interest rates?” Well, that’s what we’re still wondering, maybe there’s another way, we don’t know. Meanwhile we continue logic“Economically it’s like this,” he said.

If the US is more protectionist and China responds with a trade war, Sunarso believes that Indonesia’s economic growth will be depressed to below 5%.

“If it turns out that China responds with a trade war, it will cause our economic growth to be only around 4.7% to 5.03%,” Sunarso said.

It is said that a more serious effect could occur if different countries are busy dealing with the protection made by the US. “It is estimated that our economic growth will only be 4.6-4.9%. This is our analysis like this,” he said.

This analysis was obtained by looking at the correlation between the economies of Indonesia and China, which was compared between the economies of Indonesia and the US. Sunarso said that Indonesia’s trade relations were stronger with China, that is with a correlation index of 0.351, while with the US it fell to 0.347.

“This means that every increase or decrease in economic growth in China has a more significant impact on us than changes in the increase or decrease in economic growth in the US. That is why we must We should also be careful if it appears that the US is defensive and China responds with a trade war like last time, that is “The impact on us is very important,” said Sunarso.

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(aid/country)