Senior fellow at the Center for Information and Development Studies and the Habibie Center
The main message from the Annual Meetings of the International Monetary Fund and World Bank Group in Bali last week was that multilateralism should be kept to work and the trade war between the United States and China be stopped. Keep the global economy open despite some hurdles by populist movements. There is also a call for the US Federal Reserve to be more considerate regarding the impact of its money tightening policy on emerging markets.
Unfortunately, the US-China trade war will most likely continue and the Fed will raise its interest rate once more in December and three times next year. This means that emerging economies like Indonesia would still be facing a high risk of capital outflow, thereby pressing down the rupiah, and it would be rather difficult to significantly increase exports.
Bank Indonesia (BI) and the Finance Ministry have coordin...
Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.