DEN Warns of Rupiah Risks from More US Protectionism

Indonesia Braces for Economic Impact of Trump‘s Second Term

Jakarta, Indonesia – Indonesia’s top economic advisor is sounding the alarm about the potential fallout from Donald Trump’s re-election, warning that protectionist policies could weaken the rupiah and slow global growth.

Luhut Pandjaitan, head⁣ of the National Economic Council (DEN), expressed concern⁣ over the potential for increased tariffs and a⁢ stronger US dollar under a second Trump administration.

“The impact we expect from trump’s second term is a slowing down of global economic growth and higher inflation,” Pandjaitan said on Monday. “We worry that the US dollar will strengthen and impact our rupiah.”

pandjaitan highlighted Trump’s ⁢plan to create a Department of Government Efficiency, lead by tech entrepreneur Elon Musk,‍ with the goal of slashing the US federal budget by up to $2 trillion. This initiative, he believes, ⁢could further strain ⁢the global economy.

“From what I understand about [Trump], he’s pragmatic,” Pandjaitan cautioned. “Any action that threatens his ⁤interests could prompt‍ a strong reaction.”

In an interview with CNBC Indonesia, Pandjaitan outlined two key policies from ‍the re-elected president that ⁣could significantly impact Indonesia: the ⁢imposition of higher tariffs and⁣ a potential ⁣shift⁣ towards categorizing countries based ⁢on their alignment with US interests.

Pandjaitan stressed the need for Indonesia to “play⁢ smart” in its dealings with ‍the US, anticipating these changes and mitigating potential negative consequences.

Trump ⁤threatens Tariff on BRICS Nations Over Dollar ‍concerns

Former President Donald Trump issued a stark warning on Monday, ⁤threatening ⁣to impose meaningful tariffs on BRICS nations if they take actions that undermine the US dollar’s dominance in global trade.

The BRICS group,comprised of Brazil,Russia,India,China,and South Africa,has been increasingly vocal about reducing reliance on the US dollar for international transactions. This⁢ move, seen by some as a ‍challenge to American economic hegemony, has raised concerns in Washington.

Trump, known for his protectionist trade ⁢policies during ⁢his presidency, took to social media to express his displeasure. “If BRICS countries try to weaken the dollar, they will face serious consequences,” he stated. “We will hit them with tariffs so high they’ll be ⁣begging for mercy.”

While the specific actions ⁤that would trigger these tariffs remain unclear, Trump’s statement highlights the growing tension between the US and the BRICS⁤ nations over the future of the global financial system.

The BRICS group has been exploring alternatives to the dollar, including promoting the use of their own currencies in trade and investment. This push for de-dollarization has gained momentum in recent years, fueled by geopolitical tensions and concerns about US sanctions.

Trump’s threat comes as the US dollar ⁢faces⁣ increasing⁢ pressure from other⁢ major currencies, such as the euro ⁤and the Chinese yuan.The potential for a shift away from the dollar as the world’s ⁤reserve currency could have significant implications for the US economy and its global standing.

Indonesia Braces for Trump’s Economic Return

Jakarta,Indonesia – Indonesia’s economic future seems‍ clouded⁤ with ⁣uncertainty following⁢ Donald Trump’s re-election. Luhut Pandjaitan, Head⁣ of the National Economic ⁣Council (DEN), has voiced serious concerns about the potential repercussions of Trump’s protectionist policies on the ⁢Indonesian rupiah and ⁢global economic stability.‍

Pandjaitan anticipates increased tariffs and a strengthened US dollar under Trump’s ⁤second term, leading to a slowdown⁤ in global growth and higher inflation. He specifically highlighted the potential impact of Trump’s proposed “Department of Government Efficiency,” spearheaded⁢ by Elon Musk, which aims to slash the US federal⁣ budget by up to $2 trillion. Pandjaitan believes this initiative could further strain the ⁢global economy.

“From⁢ what I ⁢understand about [Trump],⁤ he’s pragmatic,” Pandjaitan stated cautiously.”Any action⁣ that threatens his interests⁤ could ⁤prompt a ‍strong reaction.”

The DEN chief outlined two key‍ policy shifts from the ⁣re-elected president that could considerably impact Indonesia: the⁣ imposition of higher⁤ tariffs and a possible shift towards categorizing countries based on ‍their alignment with US interests.

Pandjaitan stressed the need for Indonesia to navigate this unpredictable landscape strategically, preparing for these changes and mitigating potential downsides.

Dollar Dominance ⁢Under Threat?

Adding to the economic ⁢anxieties,former President Trump issued a bold warning,threatening to impose tariffs on BRICS nations if they undermine the US ⁢dollar’s dominance in global trade.This statement follows the BRICS group’s ⁣open discussions ⁢on⁤ reducing reliance on ‍the US dollar for⁣ international transactions.

Trump, notorious for his protectionist stance, took to social media, stating: “If BRICS countries try to weaken the dollar, they will face serious consequences.We will hit them ⁣with tariffs⁢ so high they’ll be begging for mercy.”

While the specific actions that would trigger these tariffs remained vague, Trump’s threat exposed the growing tension between the US and‍ the BRICS nations⁣ over the future of the global ‍financial⁤ system.

The BRICS group, comprised of Brazil, Russia, India, China, and South Africa, has been actively exploring alternatives to ⁣the dollar, including promoting the use of their own currencies in trade and ⁢investments. This ⁣pursuit of‍ de-dollarization has gained momentum⁣ in recent years, fueled by ‍geopolitical tensions and concerns surrounding US sanctions.