REPUBLIKA.CO.ID, JAKARTA - An observer of international relations in Indonesia University, Makmur Keliat said that the re-election of Barack Obama as the President of the USA might be followed by an economic policy that would lower rates of Indonesian exports.

"The United States of America is facing a budget deficit of almost nine percent and thus, its policy on internal economy might cause a decrease in rates of Indonesian exports," Keliat said on Wednesday.

According to Keliat, Obama's policies tend to support the lower-middle class people. To compensate for the American budget deficit, the President would possibly adopt two policies, by increasing taxes for the high-middle class people and to lower state expenditure.

Obama is also predicted to increase tax for the high class people, including investors, to spur the state`s economic growth. Moreover, the president might reduce state expenditure by pressing import demands from other countries, especially China.

This will lead to a decline in China`s exports, and at the same time, Indonesia`s import demand of China`s products would also decrease, according to Keliat.

"So, China might reduce its imports from our businessmen. Indonesia would also find it difficult to export to China as it is one of Indonesia`s major export destinations," Keliat said.

In terms of political and security policy, Obama is not expected to deviate from his stand of the past four years. According to Keliat, Obama is expected to provide support to Indonesia for modernizing its national security infrastructure.

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