Siwage Dharma Negara, an economist and co-director of the Indonesia Studies Program at the ISEAS-Yusof Ishak Institute, claimed that a lack of negotiations with the US does detract from this passion.  ,
If the US imposes a 32 % tariff on Indonesian exports, he said, it will put a significant strain on Prabowo’s ambitious goal of achieving 8 % economic growth during his term.
Even a 5 % growth target is made more challenging by these setbacks, according to the report.
Jakarta’s economy is “very delicate” to US taxes, according to Bhima Yudhistira Adhinegara, director of the Center for Economic and Law Studies in Indonesia.
At the end of the day, Foreign companies even send their products to the US, he told CNA.” Whatever goods we produce and send to China, for example, we also send our products to the US,” he said.
” The second reason is due to the dollar fluctuations. Rupiah’s exchange rate is very sensitive to everything, including imports of raw materials, remittances, and the ( rising ) living expenses Indonesian consumers will soon have to bear.
Bhima warned that Indonesia could face twin harm as major manufacturing centers like China and Vietnam work to avoid US tariffs on alternative markets, particularly Indonesia’s large customer base.
This means that Indonesia won’t be able to fully capitalize on its own base because local products, which are usually exported to the US, cannot compete with those from China and Vietnam, whose products will soon flooded the domestic market.
Because the rates are a little bit high, he explained, “it makes it very difficult, from the Indonesia manufacturers ‘ viewpoint, to move their goods from the US market to the local market around.”
On Tuesday, Indonesia made a number of concessions to US imports, including lowering material and digital goods taxes.
Finance Minister Mulyani Indrawati announced that Indonesia may even lower US transfer fees on mine and health products.  ,
Indrawati claimed that under the new tax regime, Indonesia could remove Vietnam, Bangladesh, Thailand, and China as a cause of some export to the US.
Next week, a high-level delegation from Southeast Asia’s biggest economy may travel to the US to seek a deal to lower the influence of its 32 % price.
Jokowi has emphasized that political negotiations will be conducted instead of hostile measures in his country.
In addition, Indonesia will purchase liquefied petroleum gas, liquid natural gas, and beans from the US as part of the negotiations, according to general economic minister Airlangga Hartarto, who will guide Indonesia’s group to the US.
Bhima argued that Jakarta has not taken the issue seriously, noting that there have been two years without the position of Indonesia’s envoy to Washington.
The analyst urged the Prabowo government to “act quickly” and begin developing fiscal stimulus plans, including looser loan or credit terms for industries that have been hit by US tariffs. These include utility discounts for entrepreneurs and looser utility discounts for entrepreneurs.
We want to keep our optimism up, but we must acknowledge that there is a significant issue ahead, he said.” The Indonesian government lacks the sense of crisis.
Further economic issues will result from failing to achieve 8 % growth, according to Bhima, adding to the already waning public trust in the current administration as a result of recently contentious decisions regarding the roles of the police and military.
I believe that trust in the central bank and government will decline if people see the impact of the US tariffs becoming uncontrollable and the currency ( let’s say, 18 000 per dollar ) weakens further.
The Indonesian economy will suffer as a result of the (added ) political instability. In that regard, Indonesia’s future is not promising. People are already fed up with this.
The socioeconomic analyst Oh in Malaysia noted that the effects of a 24 % US tariff rate could lead to higher prices, job losses, and fewer economic opportunities.
Voters may not distinguish between domestic policy failures and global trade dynamics, he said, because they are notoriously sensitive to immediate economic pressures, and he said Anwar’s leadership is responsible for their hardships.
” This vulnerability gives opposition parties a potent political narrative that presents the downturn as a case study of governmental incompetence,” according to some.
Oh agreed that the tariffs are a “double-edged sword” for Anwar, who has a “rare chance to demonstrate resilience and vision” in guiding Malaysia through this troubled period.
He cited how many Malaysians still give thanks to former prime minister Mahathir Mohamad’s efforts to stabilize the nation after the Asian Financial Crisis in 1997 by converting the ringgit to the US dollar.
The political payoff could be significant at both national and regional ( ASEAN ) stages, he added.” So, if Anwar navigates this storm effectively, minimising economic damage relative to neighbors, this will be significant,” he continued.