REPUBLIKA.CO.ID, JEMBER -- US President Elect Donald Trump's policies will have an influence on Indonesia's economic sector, Aditya Wardhono, Economic Observer at Jember University, said. "Indonesia embraces the free and active economic policy. With this in mind, Indonesia surely will maintain a respectful relationship with the US. But when it comes to Trump's policies that tend to counter globalization and liberalization, our economic course and strategies will need to quickly adapt to them," Wardhono said in Jember, East Java, on Monday.
He further stated that Trump's win came as a year-end surprise to everyone, and the US internal economy will find a new equilibrium, especially considering the programs mentioned in Trump's campaign. "Although not 100 percent of the promises he made in the campaign can be materialized, America's economy will contract and make impact towards global economy, especially with Trump's sentiments against China's economy," he reiterated.
America's economy experienced a stagnant growth compared to other developed countries, which prompted Trump to focus primarily on regulating the country's economy, he said. "They will have the tendency to apply inward-looking policies (into the economy). If we look at Trump's campaigns alone, he tends to be radical in economic policies and strategies, including taxes and infrastructure financing," he remarked.
"Measuring and reading Trump's anomaly have become important, considering the short-term shock in capital and money market. But we need to still be optimistic and believe that this is a mere shock effect and will not last for a long time as the market adjusts itself," he stated.
Re-arranging and increasing commodity competitiveness are keys on Trump's pragmatism, considering the US economic constellation towards its partners in economy and business.
"Indonesia and ASEAN will remain to be prioritized, as the US has an economic interest in the area; but at this moment, every country awaits what will happen in the next six months," he said.
While waiting for the market to react, Indonesia needs to quickly foresee the direction in which Trump's policies were moving, he added.
As a developing country, Indonesia's economy will be impacted greatly by the way America's economy is going. "I am worried of the possibility of Indonesia following the wrong economic rhythm as we massively export goods and capital, and our dependency is still rather high on investors. This shake up will affect our economy in the capital and money market in the short-term, and exports in the long-term," he concluded.
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