Bank Indonesia Monitors US Tariff Impact on Policy

Bank Indonesia is closely monitoring economic policy changes in the United States under President Donald Trump, assessing whether these could necessitate shifts in its own monetary policy. Juli Budi Winantya, from the central bank’s economic and monetary policy department, emphasized that the stability of the rupiah, inflation rates, and economic growth are key factors in their decision-making. Meanwhile, global markets reacted strongly to Trump's proposed tariffs on Canada, Mexico, and China, influencing the rupiah's exchange rate. Additionally, at the University of Kentucky's Economic Outlook Conference, Federal Reserve officials, including John Williams, are discussing economic forecasts and policy impacts. Williams' insights are closely watched due to his permanent voting role on the Federal Open Market Committee. These dialogues underscore the interconnectedness of global economic policies and their regional impacts.