"The Indonesian Economy and its Economic Relationship with the United States", is the subject of a talk by Nazamuddin Basyah Said, PhD.
The discussion on Indonesia-US economic relationship is lacking. Little is known about how Indonesia a member of G20 - is emerging as a big market not only in Southeast Asia, but only in the world.
In its position as the world’s fourth most populous country, the advantages of its demographic dividend, improving education and health, combined with the fast-growing physical investments, it is predicted that Indonesia will become the world’s fifth largest economy in 2030 with a GDP value of US $5.4 billion, rapidly rising from the currently eighth biggest.
However, in the increasingly open and barrierless economy of the world, Indonesia’s economic growth is vulnerable to global changes. The US economy slowdown since 2015, for example, has caused Indonesia’s exports to the US to decline remarkably because the US is the third most important trading partner and accounts for 12 percent of Indonesia’s exports.
The up and down of economic relationship between the two countries, including the declining US investments in Indonesia may greatly impact both economies. In addition, a protectionist policy adopted by Trump administration–especially towards China may also impact Indonesia’s economy through the harm it may cause to Indonesia and China trade and investments relationship, and therefore may slow down the global economic growth in the light of the fact that China plays a big role in the global economy.
I will talk about how important it is to maintain a stable economic relationship between Indonesia and the United States in the context of today’s increasingly open and interdependent global economy.
Basyah Said is an economist and senior lecturer in economics in addition to his duties as vice rector for external relations at Universitas Syiah Kula, Banda Aceh, Indonesia.
He serves on the board of the International Centre for Aceh and Indian Ocean Studies (ICAIOS), is a member of Aceh Education Council, and is chair of the Board of Trustees of the Aceh Institute. He completed a PhD at Colorado State University after completing a master's at the University of the Philippines.
Sponsored by the Department of Economics and Oberlin Shansi.