The recent results of the 2024 U.S. presidential election have raised concerns globally, especially regarding the economic implications for emerging markets like Indonesia. Governor of Bank Indonesia (BI), Perry Warjiyo, emphasized that BI is committed to working closely with the government and the Financial System Stability Committee (KSSK) to mitigate potential negative effects arising from the election results.

As of November 6, 2024, Donald Trump, the Republican candidate, is leading with 295 electoral votes, surpassing his opponent, Kamala Harris, who has secured 226 electoral votes. While the final results are still being confirmed, Trump's victory is widely expected to impact global financial dynamics.

Perry has expressed concern over the strengthening of the U.S. dollar, which could have significant implications for Indonesia. The U.S. Federal Reserve's aggressive interest rate hikes, coupled with the possibility of continuing trade wars, could lead to further volatility. These factors could put pressure on emerging markets, including Indonesia, which may experience currency depreciation and outflows of foreign capital.

"The results of the U.S. election could strengthen the dollar, maintain high interest rates in the U.S., and prolong the trade war. These dynamics may affect all countries, especially emerging markets like Indonesia," said Perry in a recent working meeting with the Indonesian House of Representatives' Commission XI.

Governor Perry further elaborated that the Indonesian rupiah could face downward pressure against the dollar if Trump officially assumes the presidency. To address this, Bank Indonesia has already prepared several mitigation strategies to protect the country’s economy from potential destabilizing effects. One of the main concerns is how a stronger U.S. dollar could lead to capital flight, undermining Indonesia's currency.

"Given the current developments, we are closely monitoring the situation, and we are prepared to take necessary actions to stabilize the economy," Perry stated. He emphasized that Bank Indonesia's commitment remains firm in maintaining stability and supporting sustainable economic growth.

In addition to the currency concerns, Perry also highlighted the broader financial uncertainties that may arise. These include increased volatility in global financial markets, which could affect investor confidence in emerging markets. With Trump’s policies, including his stance on tariffs and trade, continuing to impact global relations, the Indonesian economy may face multiple challenges.

For Indonesia, the anticipated effects of Trump's presidency are multifaceted. While the economic outlook remains uncertain, Bank Indonesia's proactive approach, in collaboration with the government and KSSK, will focus on maintaining financial stability and promoting long-term growth. The coordination between these institutions will be crucial in ensuring that Indonesia can navigate the potential risks posed by the global economic shifts stemming from the U.S. election.

Moreover, Perry mentioned that the potential for prolonged trade wars under Trump’s administration could further complicate matters for Indonesia, particularly in sectors that rely heavily on international trade. The textile industry, for example, could face greater challenges if tariffs are increased, as predicted by some analysts.

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