Hit By Trump Tariff 19 Percent, BI Boss: Indonesia's Exports And Imports To The US Will Increase

BI Governor Perry Warjiyo (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) positively welcomes the results of trade negotiations between Indonesia and the United States.

For information, US President Donald Trump has announced that Indonesian goods entering the US will still be subject to reciprocal rates. However, the figure was lowered from the previous 32 percent to 19 percent.

BI Governor Perry Warjiyo assessed that the results of the negotiations would have a positive impact on various aspects of the national economy, ranging from economic growth, trade balance, to financial market stability.

According to him, this result will strengthen Indonesia's export prospects in the future, including to the United States. Although there will be an increase in imports.

He considered that the products that entered were productive imports so that they could encourage economic growth, both in terms of investment and other sectors.

"Of course the results of these negotiations will increase imports, but we will see that the imports are productive, which of course will also encourage future economic growth, both investment and in other sectors," he said at a press conference, Wednesday, July 16.

Therefore, he is optimistic that the results of these negotiations will support Indonesia's economic prospects, especially in the trade sector.

Furthermore, Perry also saw a positive impact on the financial market because the results of these negotiations provided certainty for market players, both domestic and international, in preparing expectations and making future decisions.

He added that this certainty is expected to encourage foreign capital flows into Indonesia in the short term, as well as increase the confidence of business actors, the financial sector, and banks in formulating more confident business decisions.

"In time, we will convey the results of the assessment in detail. Overall, we can convey, we welcome and will have a positive impact on the economic prospects, both economic growth and later on the financial market, including the monetary and future exchange rates," he said.