Jakarta: Indonesia’s economic growth this year will probably remain around 5% despite trade tensions, said its finance minister on Thursday, April 24, stressing that a government delegation was still negotiating terms with Washington to try to avoid reciprocal prices.
The Minister's prospects are almost the same rate of growth as 5.03% of last year. The government’s objective is 5.2% this year and President Prabowo Subaianto is committed to bringing growth to 8% by 2029.
The remarks of Sri Mulyani Indrawati occurred during an online press conference of the stability of the Stability Council, which consists of its Minister of Finance, Governor of the Central Bank, head of the Financial Services Authority and head of the Corporation of Deposit.
The Minister and Bank Indonesia Governor Perry Warjiyo was in Washington to attend the IMF banks' meetings.
A delegation led by the Chief Minister of the Economy Airlangga Hartarto was also in the American capital by trying to conclude commercial negotiations within 60 days since its meetings of April 17 with US trade officials.
During these meetings, Indonesia proposed to buy more American products and reduce its own non-tariff barriers so that the United States does not apply a rate of 32% on its exports.
“The government will actively lead early attenuation, including communication with the American government and, as the president said, will continue deregulation efforts to reduce trade barriers,” said Sri Mlyani.
“The efforts will also continue to protect domestic demand,” she added.
The financial markets of Indonesia have been affected by capital outings since the American announcement of reciprocal rates in early April. Sri Mlyani said that the rind movements against the US dollar should be stable
Indonesia exports to the United States represent only about 2% of its gross domestic product, said the government, but the workforce of the trade war could harm its economy more.
Key exports to us include electronics, clothes and shoes.
