Jakarta – The protectionist economic policy implemented during Donald Trump’s administration has left a long-term impact on the dynamics of global trade. Developing countries, including Indonesia, face major challenges in maintaining national economic stability due to changes in the direction of US foreign policy which tends to be unilateral and ignores multilateral cooperation. Therefore, an effective economic diplomacy strategy is very crucial to prevent further economic weakening.
Executive Director of The Yudhoyono Institute (TYI) Agus Harimurti Yudhoyono (AHY) said that his party appreciated the way President Prabowo Subianto responded to the high tariff policy imposed by US President Donald Trump.
Prabowo took two diplomatic paths. First, sending a negotiating team to Washington DC. Second, establishing communication with leaders of Asian countries and other world leaders.
“This is the face of strategic diplomacy that is adaptive and responsive. Diplomacy that is not reactive, but also not passive,” said AHY.
AHY said Trump’s high tariff policy would lead the world in two extreme directions. First, there is collective resistance. Countries will move away from the dominance of the United States and build a new economy. Second, if Trump’s policies are effective, the world will be increasingly subject to one increasingly hegemonic power, namely the United States.
AHY said that if countries choose to confront the United States and build counter-alliances, the world will be pushed towards the fragmentation of new economic-political blocks. New alliances can develop into competing forces. Not only competing in trade, but in strategic influence.
“This polarization can exacerbate existing regional conflicts, including those currently occurring in the Asia Pacific region,” said AHY.
The result is that international relations are no longer built on the basis of equality and mutual trust but the dominance of one party over another. He also said that tensions resulting from various global conflicts, such as the Russia-Ukraine war, the escalation of the crisis in Gaza and Iran, and the conflict over territorial claims in the South China Sea could be much more dangerous. “The world, all of us, must prepare for the worst-case scenario, namely the outbreak of open war in a number of regions,” said AHY.
Previously, Trump implemented an import tariff policy as the US-China trade war heated up. Most recently, the US imposed a total tariff of 145 percent on China. In contrast, the bamboo curtain country has set a tariff of 84 percent for the US.
Responding to this issue, President Prabowo stated that Indonesia would not side with China or the United States in the trade war on import tariffs. According to Prabowo, China and the US are close friends of Indonesia. So it is impossible to cut off economic cooperation with the bamboo curtain country or the US.
“We respect all countries. We consider China as our good friend. We also consider the US as a good friend. We want to be a bridge,” said Prabowo.
Prabowo hopes that China and the United States will reach an agreement in this trade war. He also hopes to meet with US President Donald Trump to discuss this issue.
Prabowo also said he wanted to meet US President Donald Trump to discuss the increasingly heated trade war between the US and China.
In the future, Indonesia’s economic diplomacy strategy is expected to be more responsive to global geopolitical and economic challenges. Strengthening public diplomacy, developing the capacity of trade negotiators, and synergy between ministries are key to creating a resilient and sustainable economic defense system.
With these steps, Indonesia is expected to not only be able to withstand the negative impacts of Trump’s post-policy, but also play an important role in creating a more balanced global trade order.
