JAKARTA – The United States' economic policies under President Donald J. Trump, combined with global economic uncertainty and international trade wars, are expected to have a significant impact on developing nations, including Indonesia.

M. Chatib Basri, President Commissioner of PT Bank Mandiri (Persero) Tbk (BMRI), stressed that Indonesia must be prepared to face a global economic slowdown post-pandemic.

"We need to anticipate external shocks, but more importantly, ensure that our domestic policies remain solid amid global pressures,” he said at the Mandiri Investment Forum on Tuesday (11/2).

Potential risks stemming from US economic policies during Donald J. Trump’s second term (2.0) could trigger global inflation and cause capital outflows from emerging markets. Some of Trump's key policies under scrutiny include the deportation of illegal immigrants, tax cuts, and imposing high import tariffs.

According to Basri, Indonesia must maintain interest rate stability, strengthen domestic consumption, and ensure efficient fiscal policies to navigate the current challenges.

“We are in an era where the role of consumption and government spending is key to sustaining economic growth momentum,” he added.

Meanwhile, Mari Elka Pangestu, Deputy Chair of the National Economic Council, highlighted the importance of structural reforms to enhance Indonesia’s economic competitiveness.

She underscored that diversifying trade partners and optimising global supply chains could be solutions amid international economic turbulence.

“We must view global uncertainty as an opportunity to attract new investments and strengthen our domestic economic foundation,” she said. (DK/LK/ZH)