Indonesia to 'optimise' domestic growth as US may turn protectionist under Trump: Finance minister

JAKARTA (REUTERS) - Indonesia will seek to"optimise" its domestic sources of economic growth due to the risk of the United States becoming more protectionist under the presidency of Donald Trump, the finance minister said on Thursday (Nov 10).

Trump stunned the world by defeating heavily favoured Hillary Clinton in the US presidential race on Tuesday.

Under Trump, the United States may review its commitment to the Trans-Pacific Partnership, a trade agreement among 12 Pacific Rim countries, as well as its trade relations with other countries such as China, Sri Mulyani Indrawati told reporters.

"If the US becomes protectionist, the risk of a global weakening will become more real," the former managing director at the World Bank said, adding that she is also concerned about Trump's views on climate change.

The United States is the biggest market for Indonesia's non-oil and gas products, taking US$11.6 billion (S$16.4 billion) worth of exports from the South-east Asian country in the first nine months of this year.

Central bank governor Agus Martowardojo said that if the United States imposes higher tariffs on Chinese imports, that will create a knock-on effect on China's demand for Indonesian products. "There will be global uncertainty."