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Jakarta, VIVA – Indonesian Finance Minister, Sri Mulyani Indrawati, stated that global economic uncertainty—especially due to trade wars and unclear economic policy directions—has worsened the global economic landscape.
The minister said that one of the contributing factors is the United States' reciprocal tariff policy on 145 of its trading partners, which she said has set the world back by more than a century.
"If the wheel of history is turning backward—taking us over a hundred years back in the United States, or even back to the 16th to 18th centuries when mercantilism dominated the world. That era triggered major shifts in global social, political, and economic structures," minister Indrawati on Tuesday (May 20).
Menteri Keuangan, Sri Mulyani Indrawati
Photo :
- VIVA.co.id/Anisa Aulia
She mentioned that although the trade deal between the U.S. and the UK and the start of negotiation processes between the U.S. and China have resulted in a temporary pause in the tariff war, the response to American tariff policy has varied.
"Responses range from countries entering direct bilateral negotiations with the U.S. to others imposing retaliatory tariffs," she explained.
According to the minister, the ongoing negotiation dynamics indicate that the world will continue to face uncertainty due to economic competition, trade wars, and even potential military conflicts.
"These negotiations show the world will remain under the shadow of uncertainty, driven by economic, trade, financial, and even military rivalry among nations. Escalating trade wars and unclear global economic policies have further weakened an already fragile global economy since the beginning of the year," she emphasized.
The minister also noted that compared to the same quarter last year, several countries are now experiencing economic contraction in Q1 2025.
"For example, South Korea experienced a 0.1% year-on-year contraction—the first since the end of 2020. Meanwhile, Malaysia, which grew by 4.9% year-on-year in Q4 2024, only posted a 4.4% growth in Q1 2025," she concluded.
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"These negotiations show the world will remain under the shadow of uncertainty, driven by economic, trade, financial, and even military rivalry among nations. Escalating trade wars and unclear global economic policies have further weakened an already fragile global economy since the beginning of the year," she emphasized.
