1 week ago
9
November 8, 2024 | 09:43 pm
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati explained the implications of the Republican's victory on the domestic and global economy as Donald Trump defeated Kamala Harris in the U.S. general election.
"Donald Trump was re-elected in the election, which will result in many policy changes," said Sri Mulyani during the State Budget Performance Conference at the Ministry of Finance Office in Central Jakarta on Friday, November 8, 2024.
The Finance Ministry has identified five potential policies that may be implemented. These include corporate tax cuts, expenditure expansion, and trade protectionism. In addition, there is a possibility of pushing for a ceasefire and low commitment to climate change issues.
The protectionist stance is expected to increase import tariffs on countries that trade with the U.S., particularly China. The state treasurer explained that Trump's response to climate change is different from President Joe Biden's.
"This will certainly affect global oil prices, as well as trends related to climate change and energy issues," the former World Bank managing director said.
As a result, global energy commodity prices could fall. For example, oil, coal, and gas contribute to non-tax government revenues or PNBP.
This projection has already had an impact, even before Trump is officially sworn in. "U.S. Treasury yields, particularly 10-year yields, have risen on expectations of an expansionary U.S. government budget," she said.
A 4.4 percent rise in the 10-year U.S. Treasury bond caused the dollar to strengthen. The impact is widespread, as she mentioned that dollar transactions worldwide exceed 50 percent.
The strengthening of the U.S. dollar index following Trump's re-election has stressed the rupiah this week. Despite this, Sri Mulyani mentioned that the rupiah exchange rate has strengthened to Rp15,200 per US dollar. Today's trading closed the rupiah at around Rp15,600 per dollar.
Editor's Choice: Donald Trump's Victory May Have Negative Impact on Indonesia, Says Expert
Click here to get the latest news updates from Tempo on Google News
Sri Mulyani Says October's Fiscal Deficit of Rp309tn Remains Low
6 jam lalu
Indonesian Finance Minister Sri Mulyani has reported that the state budget recorded a deficit of Rp309.2 trillion by the end of October 2024.
Prabowo Embarks on China Visit Today Upon Xi Jinping's Invitation
9 jam lalu
Prabowo departed for China today. This is Prabowo's first official foreign visit as Indonesian president.
Putin Praises Trump, Says Russia is Ready for Dialogue
11 jam lalu
Russian President Vladimir Putin on Thursday, November 7, 2024, congratulated Donald Trump on winning the U.S. election.
IHSG Plummets for Two Consecutive Days after Trump Wins US Presidential Election
12 jam lalu
Analysts reveal the reasons behind IHSG plummeting for two consecutive days after the announcement of Donald Trump winning as US President.
Trump Win Worries International Partners Ahead of COP29 Climate Summit
22 jam lalu
Donald Trump's victory in the U.S. presidential election has darkened the outlook for a strong deal at the COP29 climate summit next week.
Today's Top 3 News: Ukrainian President Zelensky Hopes Donald Trump Can End Russia-Ukraine War
23 jam lalu
Here is the list of the top 3 news on Tempo English today.
Hamas Asks Donald Trump to Fulfill His Promise to End Israel's Genocide in Gaza
1 hari lalu
Hamas said Donald Trump will be tested on his statement that he can stop Israel's genocide in Gaza within hours of taking office as U.S. president.
Asia Braces for Strenuous Trade Relations After Donald Trump's Victory
1 hari lalu
Indonesia and Asia are expected to face more difficulties entering the U.S. market after Donald Trump's electoral victory.
Prabowo Likely to Meet Donald Trump in Upcoming U.S. Visit, Palace Says
1 hari lalu
President Prabowo will visit the United States as part of a two-week tour starting from November 8, 2024.
Donald Trump's Victory May Have Negative Impact on Indonesia, Says Expert
1 hari lalu
An expert opined that Donald Trump's "America First" policy could exacerbate international trade protectionism which would adversely affect Indonesia.
