UI Professor: Indonesia's Economy Driven 0.3 Percent Of BRICS

Photo: Doc. Antara

JAKARTA - Professor of Monetary Economics at the University of Indonesia (UI) Telisa Aulia Falianty said that Indonesia's entry as a full member of BRICS is predicted to be able to increase economic growth by 0.3 percent.

According to Telisa, BRICS has a positive impact on the Indonesian economy. In addition, Indonesia can also take a strong role in the organization if it is accompanied by a climate of good business competition.

"There are those who predict that with Indonesia's involvement in BRICS, economic growth can increase by 0.3 percent. So if we have a target of 5 percent, we can add 0.3 percent to 5.3 percent if the impact of BRICS," Telisa said in Jakarta, quoted by Antara, Wednesday, January 8.

Indonesia's strong role, said Telisa, can be seen when the rupiah exchange rate strengthens along with the announcement of new members of BRICS. According to him, this gives new positive sentiment.

"Yesterday in the rupiah market, it immediately strengthened when RI was announced as a member of BRICS," he said.

However, Telisa said there was a threat of trade war that Indonesia had to face when it joined BRICS.

According to him, President-elect of the United States (US) Donald Trump threatened to impose double the tariff on products from the state of BRICS.

"We hope that doesn't happen, how will diplomacy be with the state of BRICS and the US, because together with members of BRICS and Trump's inauguration, those are two things that will affect commodity prices and global economic prospects and the Indonesian economy," Telisa explained.