Instead Of Trump, Biden Is Considered To Be More Profitable For Indonesia's Economy

Illustration of the US Presidential Election. (Raga Granada / VOI)

JAKARTA - The presidential election (pilpres) in the United States (US) is taking place today. both Republican candidates Donald Trump and Democrat Joe Biden are competing for the most votes. The US Presidential Election is very influential for the Indonesian economy, especially for the trade sector.

Economic observer at the Institute for Development of Economics and Finance (Indef) Bhima Yudhistira said the impact was quite large for Indonesia's trade prospects from the results of the US election. Either directly or indirectly.

Furthermore, Bhima said, Trump's protectionism had done a lot of harm to Indonesia's interests. As a result of the trade war between China and the United States, Indonesia's export performance was low. If Trump returns to become US President, it will be burdensome for Indonesia.

"So there is hope if Joe Biden wins. This can descalate or reduce trade war tensions," he said, when contacted by VOI, Tuesday, October 3.

Then, related to the stimulus offered by the candidates for President of the United States, both Trump and Biden have different stimulus packages. Trump, says Bhima, is prioritizing tax breaks for the rich.

Meanwhile for Biden, the economic stimulus was bigger to encourage the recovery of the purchasing power of the lower middle class. One of them is to increase the federal minimum wage to 15 US dollars per hour.

"If Biden wins, the economic recovery will be felt more for the demand for export goods from Indonesia, because it targets consumers directly. Meanwhile, if Donald Trump prioritizes business actors. So it will be more profitable if Biden wins for the Indonesian economy," he said.

Meanwhile, from a political perspective, said Bhima, Biden is considered to have more experience in establishing productive multilateral relations in the Obama era. Biden's ability will have an impact on reducing the level of tension in the South China Sea.

"Because Donald Trump's ways are more confrontational than when Biden was Obama's vice president. He upholds coordination, two-way communication," he explained.