Finance Minister Moves to Accelerate Deregulation and Safeguard Investor Confidence
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JAKARTA, investortrust.id — Indonesia's top finance official has vowed to fast-track deregulation and eliminate trade barriers in an effort to strengthen investor confidence and shield the domestic economy from escalating global tariff tensions.
Finance Minister Sri Mulyani Indrawati made the statement during a joint meeting of Southeast Asian finance ministers and central bank governors in Malaysia on Friday, April 11, 2025. She emphasized that the policy push includes proactive diplomacy and negotiation to protect Indonesia’s economic interests while fostering international cooperation.
"We are not pursuing retaliation. The key lies in collaboration and constructive dialogue, especially when dealing with both tariff and non-tariff barriers," Sri Mulyani said in her official remarks. She added that she has been working closely with Bank Indonesia Governor to maintain market stability and trust.
Strategic Diplomacy Over Retaliation
Sri Mulyani, a former Managing Director at the World Bank, stressed that preserving investor confidence in the capital market requires a comprehensive approach that includes exchange rate management, bond yields, and market sentiment.
“This is a multi-faceted issue that must be addressed simultaneously—be it exchange rates, yields on government bonds, or investor confidence in the capital market,” she said.
The 12th ASEAN Finance Ministers and Central Bank Governors Meeting, or AFMGM, reaffirmed the bloc's commitment to enhancing regional resilience through continuous dialogue, diplomacy, and goodwill—an approach deemed vital amid the uncertainty triggered by new trade measures from the United States.
ASEAN Pushes for Open, Inclusive Trade
Concerns are mounting over the volatility in capital flows and exchange rates following reciprocal tariff policies enacted by the U.S. To counter these pressures, ASEAN leaders jointly declared their readiness to engage constructively with all global partners, including the United States, in pursuit of fair, forward-looking, and rules-based trade solutions.
Earlier this week, Sri Mulyani said Indonesia intends to use the 90-day moratorium declared by U.S. President Donald Trump on tariff implementation to its advantage. She warned that without this buffer, Indonesia’s GDP could take a 0.3 to 0.5 percentage point hit due to weaker trade.
90 Days to Negotiate Growth-Safe Framework
Sri Mulyani noted that the three-month period offers a window to establish a cooperation framework rooted in mutual respect among nations, and to strengthen regional ties within Southeast Asia to bolster economic resilience.
"We must remain prudent. Fiscal spending needs to be more efficient, targeted, and effective to support economic growth, especially from a monetary perspective," she said.
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