TEMPO.CO, Jakarta - Coordinating Economic Minister Darmin Nasution said that the economic slowdown in the United States would not necessarily have positive impacts on Indonesia.
“[US economic] slowdown is not good for us,” Darmin said at his office on Thursday night April 28, 2016.
Darmin added that the US economic slowdown could affect Indonesia’s exports since the country had been the major export destination for Indonesia. Previously, China was Indonesia’s largest importer.
However, Darmin did not deny that that The Fed’s plan not to increase its rate was good news for Indonesia.
The US is experiencing the lowest economic growth in the last two years, which is 0.5 percent in the first quarter 2016, caused by lower consumption rate and strengthening US dollar.
The US dollar strengthening had resulted in falling exports, increasing prices of US products for importers. The plummeting oil price also hampered US economic growth, since profits generated by oil companies dropped significantly.
This year’s US economic growth is lower compared to the fourth quarter of 2015 that stood at 1.4 percent. The current growth has been the lowest since the first quarter of 2014.
DIKO OKTARA
