Ari Kuncoro in the Closing Bell, CNBC Indonesia TV: The Impact of the Election of the US President on the Indonesian Economy
Nino Eka Putra ~ PR of FEB UI
DEPOK – (9/11/2020) Rector of Universitas Indonesia and UI economist Professor Ari Kuncoro said that the election of Joe Biden as President of the United States (US), can reduce market uncertainty caused by Donald Trump. This is because the leadership of Donald Trump when he led the US, has always been changing in implementing policies. As a result, an agreement that had been negotiated by the lower echelons suddenly crashed again and left the market confused. However, the direction of the US-China policy will still be the same and there will still be a trade war, though somewhat softer during Joe Biden’s era.
“For the Indonesian economy, Bidenomics can stimulate liquidity in the US which will flow to emerging markets, such as encouraging the strengthening of the Rupiah. In addition, Indonesia can also take advantage of this condition to increase exports to the US through the generalized system of preferences (GSP) facility, one of which is the export of labor-intensive products related to medical device products. Our opportunity to become a new market with the given GSP will lead to a reciprocal partnership, in the form of the US buying Indonesian products and vice versa,” said Ari Kuncoro, on the Impact of the US President’s Election on the Indonesian Economy, Monday (9/11/2020) in the Closing Bell dialog, CNBC Indonesia TV, with Maria Katarina.
On the other hand, the condition of our economy in the midst of this pandemic is in the direction of improvement. On a quarterly basis, from Q2-2020 to Q3-2020 there was a growth of 5.05%. To encourage this economic recovery, the big homework is in Q4-2020. The main approach that must be applied to handling the Covid-19, is to encourage public confidence in normal activities, especially consumption, by implementing disciplined health protocols while waiting for a vaccine.
“The key is in the fourth quarter of 2020, that economic recovery does not need to be accelerated. Let us think that 0% growth or a small positive is sufficient. The effect will occur in Q1 and Q2 2021, with predictions of an economic growth of around 2% – 4%. In the current situation, we expect the “V” growth is not too sharp, but most importantly, there is continuous improvement. Meanwhile, the election of Joe Biden who comes from the Democratic party with a social agenda, such as health and the Paris climate agreement, can increase our growth in the fourth quarter of 2020 and the following quarters in 2021, to restore the economy after the pandemic.” Ari said in closing the dialog. (hjtp)
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