The Suspension Of The United States And China's Economy Has A Negative Impact On Indonesia

Illustration. (Photo: Freepic)

JAKARTA - Executive Director of the Center of Reform on Economics (CORE) Mohammad Faisal said the slowdown in economic growth in the United States and China would have a significant impact on Indonesia's economic pace.

According to him, this is because the two superpowers are Indonesia's main trading partners in the international market.

"In my observations, Japan and Britain have a relatively weaker influence on Indonesia than China and America, especially China," he said in a discussion in Jakarta, quoted from Antara, Wednesday, February 21.

Faisal said based on predictions from the International Monetary Fund (IMF), by 2024 China's economic growth rate will weaken by about 1 percent, while the US is projected to decline from 2.1 percent to 1.5 percent.

He assessed that the prediction of the weakening would have a major impact on Indonesia, because cumulatively China and the US contributed 41 and 22 percent to world economic growth in the last 10 years, respectively.

Therefore, he said, there needs to be a strategy to anticipate the slowdown in the economic rate experienced by the two main Indonesian trading partners so that the vision of Indonesia Gold 2045 can be realized.

"So in the future, China will continue to be expected to grow more slowly, so that in this condition we need to be vigilant, even though Indonesia is more resilient," he said.

According to data from the Central Statistics Agency (BPS), the cumulative value of Indonesia's exports to China in 2023 reached US$64.9 billion, with the highest export figure occurring in December reaching US$6.1 billion.

The profits made by Indonesia through exports to the United States in the same year amounted to 23.2 billion US dollars, with the highest sales in August reaching 2.1 billion US dollars.