Trade War Begins Tomorrow, Rupiah Projected to Be Battered

United States (US) President Donald Trump's policy of imposing import tariffs on all countries has raised new concerns for the Indonesian economy. A full statement on the tariffs, scheduled to be announced on Wednesday, April 2, 2025, could impact gold prices and further weaken the Rupiah.

Currency analyst Ibrahim Assuaibi said Trump's policy could trigger a surge in gold prices. Furthermore, Ibrahim said, Trump's policy also has the potential to weaken the rupiah and the Jakarta Composite Index (JCI).

"I'm afraid the rupiah will approach Rp 17,000 (per US$1). We know the market is closed until April 7th, and Bank Indonesia hasn't intervened in the market. It's highly likely the rupiah will weaken," Ibrahim told detikcom on Tuesday (April 1, 2025).

"This policy will definitely impact imported goods. Coal, nickel, and crude palm oil (CPO) are also imported into the US. This means that when they enter, they will be subject to import duties, say a 25% price increase. This means the Indonesian government must find new markets," he said.

It remains unclear whether Indonesia will also be subject to import tariffs from the US. However, he believes the government needs to prepare for Trump's trade war.

"We don't know yet what Trump will say tomorrow, whether Indonesia will also be affected by this trade war. We know for ourselves that Indonesia is currently experiencing economic problems. Not only Indonesia, but almost all countries. Moreover, if Indonesia enters the category of surplus countries, the government must also be prepared to respond quickly," he said.

Ibrahim believes that Indonesia's trade balance with the US could also be disrupted. However, he doesn't rule out the possibility that Indonesia could also benefit from this US policy.

"Regarding the trade war on April 2nd, as an observer, I was already very skeptical that it would happen like this. What's more...

Source: Detik.com

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