Jakarta (WNAM MONITORING): Economist and capital market practitioner Hans Kwee recommended that Indonesia intensify trade relations with BRICS member countries (Brazil, Russia, India, China, and South Africa) in response to rising US import tariffs on multiple countries.
He elaborated that fostering stronger trade ties with BRICS members is a strategic move to identify new alternative revenue sources amid high import tariffs imposed by the US.
“Indonesia needs to strengthen trade with BRICS countries to seek new sources of revenue after the high tariffs by the US,” Kwee stated when contacted by ANTARA here on Thursday.
He cautioned that the high import tariffs imposed by the US on various countries could adversely affect Indonesia’s economy and financial markets.
“Certainly, this tariff policy will be negative for Indonesia’s economy and financial markets if Trump does not change it soon,” Kwee stressed.
He noted that this policy might disrupt Indonesia’s export balance, potentially reducing the country’s trade surplus in the future.
“There will definitely be a decline in exports, reducing Indonesia’s trade surplus,” he remarked.
In response to the US import tariffs, Kwee projected a weakening of the rupiah’s exchange rate against the US dollar due to the greenback’s strengthening against other currencies.
“The US dollar is likely to strengthen, and the rupiah will weaken,” he stated.
On Wednesday (April 2), U.S. President Donald Trump announced a combination of universal and retaliatory tariffs to be applied to various countries worldwide.
Trump announced a baseline tariff of 10 percent on all countries alongside additional reciprocal tariffs for specific trading partners.
These reciprocal tariffs include 34 percent on China, 20 percent on Europe, 46 percent on Vietnam, 32 percent on Taiwan, and 24 percent on Japan.
Furthermore, reciprocal tariffs were set at 26 percent for India, 25 percent for South Korea, 36 percent for Thailand, 31 percent for Switzerland, 32 percent for Indonesia, 24 percent for Malaysia, 49 percent for Cambodia, 10 percent for the UK, and 30 percent for South Africa.
