CORE Economist: The Slowdown In The US And China Economy Influences Indonesian Exports

Executive Director of the Center of Reform on Economics (CORE) Indonesia Mohammad Faisal. (Photo: Doc. ANTARA)

JAKARTA - Executive Director of the Center of Reform on Economics (CORE) Indonesia Mohammad Faisal said the economic slowdown from the United States (US) and China could affect Indonesia's export performance in 2024.

Faisal said, America and China are the largest export markets for Indonesia. The economic downturn that occurs in the country has more or less impacts on commodity demand in Indonesia.

"At the end of 2022 there was a wave of layoffs, especially in textiles, this cannot be separated from the conditions in America after inflation rose tremendously. The problem with the textile and textile industry is that the export market is America so that contractions in America can have an impact on layoffs," said Faisal, quoted by ANTARA, Thursday, November 23.

Faisal said that the United States economy is projected to only grow 1.5 percent in 2024.

This is based on the slowing consumption of Americans.

The Fed is also considered to still insist on achieving the target of reducing inflation by 2 percent.

Meanwhile, China's economic growth is also predicted to slow down in 2024 due to weakening domestic demand after the COVID-19 zero policy at the end of 2022 was lifted.

In addition, the crisis in the property sector is also considered to have contributed to 25-30 percent of Gross Domestic Product (GDP).

According to Faisal, this slowdown has a bigger impact than the United States.

However, Faisal said, since Indonesia implemented a downstream policy, exports to China have experienced a significant increase, especially for nickel derivative products.

"The export share to China is unusually high, it's good but careful with the issue of dependence on China. We have to be diversified to other countries," said Faisal.