Minister Of VAT: Donald Trump's Leadership Is Not Too Impacted On The Indonesian Economy

JAKARTA - Minister of National Development Planning/Head of the National Development Planning Agency (PPN/Bappenas) Rachmat Pambudy stated that the impact of Donald Trump's leadership as President of the United States (US) on the Indonesian economy is relatively not as deep as experienced by other countries.

"We must pay attention to global uncertainties, including the policies of the President of the United States Donald Trump and the dynamics of the Chinese economy. However, simulations of the Ministry of National Development Planning/Bappenas show that the impact of President Donald Trump's leadership on the Indonesian economy is relatively not as deep as experienced by other countries, so we must be optimistic that we can achieve the target of economic growth," he said at a Working Meeting with Committee IV DPD RI, quoted by Antara from an official statement in Jakarta, Sunday.

As is known, Trump has a policy that prioritizes the US economic interests. One of them is the issue of trade rates given to various countries such as China, Canada, Mexico, and the European Union as well.

Another controversial action Trump has taken regarding the closure of the United States Agency for International Development (USAID) office to plans to take over the Gaza Strip and the Panama Canal.

These various plans and policies are considered by money market observer Ariston Tjendra, to trigger US economic conflicts with other countries, as well as shocks at the global economy.

The US has also decided to temporarily suspend foreign aid to Indonesia which can affect important programs, handling HIV/AIDS, tuberculosis, and providing medical equipment.

Therefore, the Head of Bappenas emphasized the importance of maintaining consistency in Indonesia's economic growth amid global uncertainty.

Seeing domestic conditions, he continued, the Indonesian economy showed strong resilience with growth of 5.03 percent to the third quarter of 2024.

Macroeconomic stability supported by the highest foreign exchange reserves in history amounting to 155.7 billion US dollars, equivalent to financing 6.7 months of imports, well above international standards.

Inflation is also controlled at the level of 1.57 percent by the end of 2024, which means maintaining people's purchasing power.

"The Ministry of National Development Planning/Bappenas projects economic growth in 2025 of 5.3 percent, which will be a strong foothold to achieve the 8 percent growth target by 2025-2029," said Rachmat.

The Minister of National Development Planning emphasized that the direction of support for economic growth of fiscal policy is adaptive to increasing state revenue and expenditure by pro-growth, while maintaining fiscal stability and sustainability.

In 2029, the state revenue target is projected to reach 13.75'18 percent of Gross Domestic Product (GDP).

"These targets have been set in the 2025-2029 RPJMN (National Medium-Term Development Plan) and the 2025 RKP (Government Work Plan) as a basis for national development priorities," he said.

With an integrated development strategy, his party is optimistic that an inclusive and sustainable economic vision can be realized.

RPJMN 2025-2029 will be an important foothold to accelerate development. President Prabowo's new leadership with the spirit of cross-sectoral collaboration, the regionals must also make us optimistic that all targets can be achieved," said the Head of Bappenas.