By: Veritonaldi )*
The Indonesian Government’s strategic steps in responding to the reciprocal tariff policy of United States President Donald Trump deserve appreciation. When many countries are not yet ready to respond to protectionist policies that have an impact on global trade flows, Indonesia has shown its expertise in conducting careful, measured, and proactive economic diplomacy. The opening of direct negotiation channels with the United States, even becoming one of the first countries to be accepted in bilateral dialogue, reflects Indonesia’s capacity as a trading partner that is viewed seriously by Washington.
President Prabowo Subianto’s leadership played an important role in directing the national response to Trump’s policy. By instructing the economic team to move immediately, prioritizing the principle of dual track diplomacy (direct diplomacy through official channels and multilateral strategic communication with international partners). Indonesia not only plays a reactive role to the policies of other countries, but also appears as an active actor in safeguarding national interests in the international trade arena. This approach has succeeded in opening up opportunities for resolving negotiations within 60 days, an achievement that shows the effectiveness of cross-ministerial diplomatic work.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, during his visit to Washington, DC, said that the Indonesian Government has prepared a number of concrete proposals in the negotiation process, such as increasing purchases of energy products from the United States including LPG, crude oil, and gasoline as well as a commitment to expanding cooperation in the agriculture, education, and digital economy sectors. In addition, the Government has also shown its commitment to facilitating US companies operating in Indonesia, as a form of good faith in building mutually beneficial trade relations.
Indonesia’s readiness and courage in proposing cooperation in the critical minerals sector is also a signal that Indonesia is not only positioning itself as a market, but also as a strategic partner with significant resources and added value. The emphasis on the business-to-business scheme is a smart approach to creating a more sustainable relationship, while avoiding dependence on aid models or economic intervention from large countries.
In terms of domestic policy, the strategy to deal with Trump’s tariff policy is also a momentum to strengthen national economic resilience. Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, stated the importance of utilizing this external pressure as a driver to strengthen the domestic economic structure. According to him, maintaining economic growth, people’s purchasing power, price stability, and investment flows are the main foundations for facing uncertain global dynamics.
The steps taken by the government are not only aimed at overcoming the direct impact of tariff policies, but are also directed at accelerating national strategic agendas such as industrial downstreaming, economic digitalization, strengthening the green economy, and energy transition. Diversification of markets and trade destinations is the next priority, so that Indonesia does not depend on traditional markets that are vulnerable to protectionist policies.
Support from national figures also strengthens the legitimacy of this strategy. The 6th President of the Republic of Indonesia, Susilo Bambang Yudhoyono, assessed that President Prabowo’s steps were in line with his strategic ideas in dealing with pressure from abroad. By prioritizing a rational, non-reactive approach, and taking national capabilities into account objectively, the government has demonstrated a mature attitude in negotiating on the global stage. According to him, if Indonesia’s response is too emotional and unmeasured, then what will happen will actually worsen the national economic condition.
What is being done now is a real example of how smart economic diplomacy can reduce the potential for trade conflicts, while opening up space for profitable collaboration. The government not only survived the pressure, but was able to use the momentum to redirect the priorities of national economic development.
In addition, in the regional context, Indonesia’s success in responding to this tariff policy represents ASEAN’s strong position in the global economic arena. By maintaining strategic communication with regional and international partners, Indonesia positions itself as an anchor of stability and an adaptive and progressive regional leader.
The entire negotiation process also reflects that the government is not working in a closed space. The involvement of various actors, from technical ministries, business actors, to national figures, shows that Indonesia’s current economic policy ecosystem is running inwith a collaborative approach. This is important capital to face future global challenges, including the possibility of a broader escalation of protectionism.
With all the achievements and strategies that have been taken, appreciation should be given to all parties involved in this negotiation process. The Indonesian government has succeeded in showing that economic diplomacy is not only about maintaining a position, but also about creating new opportunities for growth, cooperation, and independence. This strategy to deal with Trump’s tariff policy is one proof that visionary, responsive, and adaptive leadership is able to navigate global complexity in order to maintain national interests.
In an increasingly complex global situation, this step is proof that Indonesia is able to play a role as a developing country that has a high bargaining position and thinks ahead. It is hoped that similar strategies can continue in various other international forums to maintain economic sovereignty while strengthening Indonesia’s role in the global arena.
)* The author is an observer of International Economic issues