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Jakarta, CNN Indonesia –
Joe biden-Kamala Harris won 2020 US Presidential Election beat incumbent Donald Trump-Mike Pence. The victory led to Biden becoming the 46th president of the United States.
Senior economist Faisal Basri believes that Biden’s victory will not be more profitable for Indonesia. Biden has the opposite fiscal policy from Trump’s.
Faisal said the Democratic Party, which supported Biden, was more “complicated” in terms of bilateral business. According to him, this is because when establishing bilateral relations, Democrats often include issues of humanity (human rights) and renewable energy.
This is very different from Trump, who doesn’t care about these things and tends to emphasize only business gains.
“I don’t like the answer, if Trump (wins) is more profitable for Indonesia, this is from experience. The Republican Party works as a stimulus, printing money for the US dollar to fall and the rupee to strengthen without any effort,” he said in an online discussion some time ago, Wednesday (4/11).
Another reason that made Biden’s victory “detrimental” for Indonesia, Faisal said, was the Democrats’ caution in restricting the fiscal deficit.
In financing, Biden will raise taxes on the rich, which will have a positive impact on the economy of Uncle Sam’s country.
Meanwhile, during Trump’s tenure over the past 4 years, the US administration has tended to pour out giant stimulus funds to ensure that big business can survive.
Not only that, the Republican party that supports Trump is also seen as diligent in printing money for tax funding. This causes the US dollar to weaken compared to other world currencies, including the rupee.
In the end, the Indonesian government did not have to do much to maintain the exchange rate for the Garuda currency. Biden’s victory made Faisal worry that the external factors that had benefited Indonesia when Trump took office would disappear.
Meanwhile, the research director of the Center for Reform in Economics or CORE Indonesia, Pieter Abdullah, assessed that Biden’s victory could eliminate the global economic uncertainty that occurred during Trump’s term.
Therefore, it is more profitable for several countries, including Indonesia. In addition, he considered that trade relations between the US and China that were stretched in the Trump era could be improved.
Of course, this has not escaped people’s memory about the hot-button trade war dispute between the United States and China during 2018-2019. The trade war began on March 8, 2018, when Trump pursued trade protectionism by imposing a 25 percent tariff on steel imports and 10 percent on aluminum from several countries, including China.
As a result, China responded with a plan to impose import tariffs of 15 to 25 percent on US products. The two superpowers refunded import duties and even taxes until early 2020.
In January 2020, the trade war between the United States and China eased along with the signing of the Phase I agreement between the two countries. Pieter assessed that if Trump is elected, his policies will not change much, including US trade protectionism.
“From a global perspective, if Trump wins, sentiment tends to be negative. Because globally, Trump is a source of uncertainty, his policies are unpredictable, and what can be guaranteed will continue to be unrest and trade wars,” he said Tuesday. (03/11).
(yes / dea)
[Gambas:Video CNN]
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