JAKARTA, KOMPAS.com – Joe Biden's win as the 46th US President is expected to restore the global and Indonesian economies.
A Joe Biden presidency increases the likelihood of generating more foreign investment in Indonesia.
The country could also stand to benefit from higher commodity prices on goods it commonly exports.
“I believe Indonesia will experience a positive effect on the global economic recovery following Biden’s victory. Investment flow will also make its way into Indonesia via portfolio investment or foreign direct investment,” said Piter Abdullah Redjalan, Research Director of CORE Indonesia.
The forecast of foreign investment in Indonesia is promising as a Joe Biden presidency would end the US-China trade war that has affected the global economy.
The outlook brings a positive sentiment for international trade and market which results in production and higher commodity prices.
This optimistic forecast will trickle into the financial market by enhancing the risk appetite, thus boosting the stock market index and trade volume.
“In the medium term, I predict that Biden will have a positive impact on the global investment climate.”