US tariffs may cut Indonesia growth by up to 0.5 percentage points, minister says

A tug boat cruises past Jakarta International Container Terminal at Tanjung Prior Port in Jakarta, Indonesia, Wednesday, Jan. 15, 2025. (AP Photo/Tatan Syuflana)

KUALA LUMPUR: Planned U.S. tariffs could reduce Indonesia's potential growth by 0.3 to 0.5 percentage points, but a 90-day pause in implementing the levies allows time to discuss solutions, Indonesia's finance minister told Reuters on Thursday.

Minister Sri Mulyani Indrawati said Indonesia welcomes the 90-day pause as it provided an opportunity to mitigate or avoid the downside risks from tariffs to economic growth.