Jakarta (ANTARA) – Indonesia’s economy will find it hard to grow in 2020 because it cannot remain separate from the effects of the ongoing global turmoil, Deputy Finance Minister Suahasil Nazara projected.
Although next year there will be general elections (elections) in the United States (US), it is not expected to reduce tension from global uncertainties that have taken place in recent years, Suahasil said.
“Next year there will be presidential elections in the US. We feel that whoever wins (the elections) will keep the tension in the US and China trade ties,” he said in Jakarta Monday.
The turmoil was not just an economic matter but a question of geopolitics between two countries, according to Suahasil. The US did not want China to develop faster, he believed.
“The trade tension is more than just an economic matter, it is about geopolitics, where the US does not want China to progress too fast. Therefore, that global tension will remain,” he noted.
He also hoped that the Japanese economy, which was currently quite strong with Gross Domestic Product (GDP) growing 1.8 percent annually in the third quarter of 2019 from the previous quarter, would continue to be stable so Indonesia’s export sector could rise.
“We hope Japan will recover, but of course there are risks. If China remains in a challenging situation, Europe will not recover, Britain will still be in a position to ascertain how it has passed through Brexit credibly,” Suahasil said.
The turmoil in various countries is putting a cloud over Indonesia’s economic conditions so the government will continue to reform, including through the establishment of an Omnibus Law related to Employment Creation and Taxation.
“The Omnibus Law aims to handle several laws which are considered to hamper investment. Through it we will address problems related to the Negative Investment List, labor reforms, EoDB, special economic zone, and land acquisition,” Suahasil said in conclusion. (INE)
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