Jakarta — Amidst increasingly complex global trade dynamics, the policy of the President of the United States, Donald Trump, which raised import tariffs on products from various countries, including Indonesia, has received serious attention from the Indonesian government. However, instead of responding with retaliatory measures that could trigger new tensions, President Prabowo Subianto has chosen a more elegant and strategic diplomatic path.
President Prabowo’s choice to prioritize negotiation and dialogue is considered a wise and appropriate step amidst global economic uncertainty. Economist and Professor at the Bogor Agricultural Institute (IPB), Hermanto Siregar, said that the strategy currently implemented by the government has been quite effective. The government is not rushing to take emotional steps such as retaliatory tariffs, but rather focuses on diplomatic efforts, even providing incentives in the form of reducing export taxes and eliminating exit costs for strategic products such as Crude Palm Oil (CPO).
“In conducting diplomacy to obtain fairer tariffs, Indonesia can show data that our trade surplus mainly comes from commodities, not from manufacturing. In addition, it is very important to explain Indonesia’s critical role in the global supply chain, especially in terms of strategic minerals such as nickel,” explained Hermanto Siregar.
Hermanto added that Indonesia’s nickel exports have great potential to support the American industrial supply chain, especially in the development of renewable energy technology and electric vehicles. This fact must be ammunition in every negotiation, to show that cooperation with Indonesia is a strategic interest for both countries.
Meanwhile, Member of Commission XI of the Indonesian House of Representatives, Charles Meikyansah, also expressed his support for the negotiation steps chosen by President Prabowo. He considered that this diplomatic initiative not only prevented Indonesia from trade conflicts, but also opened up opportunities for improving domestic policies, especially regarding the Domestic Component Level (TKDN) regulation.
“The negotiation efforts carried out by the government must be fully supported. This is an important momentum to show that Indonesia is present with one strategy and one commitment — namely protecting national interests through smart diplomacy and targeted policies,” said Charles.
This elegant diplomatic move is expected to not only be an answer to Trump’s policy challenges, but also strengthen Indonesia’s position as a strong, dignified and sovereign global economic partner. [^]
