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 will detract from this passion.  ,
The US’s 32 % tax on Indonesian exports will be a major obstacle to Prabowo’s ambitious goal of achieving 8 % economic development during his term, he added.
Even a 5 % growth target is made more challenging by these setbacks, according to the author.
Bhima Yudhistira Adhinegara, chairman of the Indonesian Center for Economic and Law Studies, claimed Jakarta’s relationship to the global supply chain makes it “very hypersensitive” to US taxes.
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. The ( rising ) living expenses that Indonesian consumers will soon have to bear are all very sensitive to rupees, especially raw material imports and remittances.
Bhima warned that as key manufacturing centers like China and Vietnam work harder to avoid US tariffs, Indonesia could face a double blow.
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, which will quickly monopolize the domestic market.
Because the costs are a little bit high, he explained, “it makes it very difficult for Indonesia exporters to move their items from the US market to the local market here.”
On Tuesday, Indonesia made a number of concessions to US imports, including lowering material and digital goods taxes.
Indonesia’s finance minister Mulyani Indrawati announced that the US would also decrease its import taxes on mining-related goods and medical equipment.  ,
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 month, 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 does purchase liquefied petroleum gas, liquid natural oil, 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 claimed that Jakarta has not shown” seriousness” in addressing the problem, noting that the position for Indonesia’s envoy to Washington has been vacant for two years.
The researcher urged the Prabowo state to “act quickly” and begin developing fiscal stimulus plans, including looser loan or credit conditions for industries that have been hit by US tariffs. These include energy discounts for entrepreneurs and looser power discounts.
” The Indian government lacks the sense of crisis, but we want to preserve our optimism going,” he said.” But we also need to acknowledge that there is a significant issue ahead.”
Further economic issues will worsen already waning public confidence in the current administration due to recent contentious procedures involving the functions of the police and military, according to Bhima.
I believe that people’s confidence in the central bank and the government will decline if they see the impact of the US tariffs becoming uncontrollable and the currency ( let’s say, 18 000 per dollar ) weaken further.
The Indonesian economy will suffer as a result of the (added ) political instability. In that regard, Indonesia’s future is not promising. Individuals are now “tired” of it.
The economic analyst Oh in Malaysia noted that the effects of a 24 % US tax rate could lead to higher pricing, job losses, and fewer economic opportunities.
Voters may not be able to tell the difference between private policy failures and global trade dynamics, he said, because they are extremely sensitive to immediate economic pressures and are therefore attributed to Anwar’s leadership.
This risk gives criticism parties a strong social narrative that frames the downturn as evidence of political incompetence, or as some might say “balls” of it.
Oh agreed that Anwar’s tariffs are a “double-edged weapon” for him because he has a “rare chance to demonstrate endurance and vision” in guiding Malaysia through this difficult time.
He cited how many Malay 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 dollars.
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.