Indonesia has set a 5.2 per cent GDP growth target this year versus 5.03 per cent achieved last year. President Prabowo Subianto, however, wants to jack up the growth to 8 per cent by 2029.
Indonesia’s authorities have said the US tariffs would have a limited impact on the economy, which relies more on the domestic market.
The US was Indonesia’s third-biggest export destination as of last year, receiving shipments worth US$26.3 billion, according to Indonesian government data.
Sri Mulyani said Indonesia would use the 90-day tariff pause to come up with a framework of cooperation that was “mutually respected” by other countries.
“We have to continue to be very prudent … Expenditure should be made more efficient, well-targeted and effective in supporting growth on the monetary side.”
She said the recent pressure on the rupiah currency, which is at all-time lows, was temporary, adding the government remained focused on indicators such as corporate debt and government debt-to-GDP.
The rupiah strengthened as much as 0.83 per cent to 16,720 rupiah per US$1 on Thursday as of 5.12am GMT, according to LSEG data, after hitting an all-time low for two days straight since the market reopened on Tuesday.
https://www.channelnewsasia.com/asia/indonesia-us-trump-tariffs-reduce-potential-growth-5056791
