By: Andi Mahesa )*
President Donald Trump’s economic policy, which has re-emerged with a protectionist approach and tariff increases against a number of trading partner countries, including Indonesia, is a challenge for the stability of global trade. For Indonesia, which is trying to strengthen its economic foundations and encourage exports, the response to this policy must be strategic and long-term. Instead of choosing confrontation, the Indonesian government has intelligently taken the path of diplomacy and negotiation as the main instrument to maintain healthy and sustainable trade relations with the United States.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the government had held a high-level meeting with the US Trade Representative and the United States Department of Commerce. The main focus of the meeting was to open up space for dialogue to create fairer and more balanced trade, while maintaining national interests. This effort not only shows the maturity of Indonesia’s economic diplomacy, but also emphasizes that this country is not sitting idly by in the face of global challenges.
Indonesia offers several forms of mutually beneficial cooperation as part of an effort to mitigate the impact of the tariff policy imposed by the US. The offer includes increasing energy purchases such as LNG and sweet crude oil from the US, to imports of agricultural products such as wheat. Not only stopping at trade in goods, Indonesia also opens the door to strategic cooperation in the investment, education, technology sectors, to strengthening the digital economy and financial services. This is proof that the government does not view this tariff issue narrowly, but rather as an opportunity to expand the spectrum of stronger bilateral cooperation.
This step has received support from various groups, including the legislature. Chairman of Commission XI of the Indonesian House of Representatives, Misbakhun, said that the sending of the High-Level Special Team by the Indonesian government was the right initial step. He emphasized that the direction of President Prabowo’s policy is very clear: carrying out structural reforms and deregulation in order to create efficiency in the national economy. By fixing internal obstacles that have so far made it difficult for the business world, Indonesia will become more competitive in the global market, and its bargaining power in international negotiations will increase.
This negotiation must also consider the geopolitical context and the reality of global economic relations. International relations observer from Padjadjaran University, Teuku Rezasyah, reminded of the importance of a flexible and measurable diplomatic strategy. According to him, the Indonesian government must fight so that labor-intensive products such as textiles and footwear are not subject to high tariffs when entering the US market. This is important to maintain competitiveness while absorbing domestic labor sustainably.
Teuku also emphasized that although Indonesia enjoys a trade surplus with the US, Indonesia’s bargaining position should not be built on a purely defensive attitude. The government needs to be open to strategic compromises, such as providing limited access for US products to the domestic market. However, such compromises must be made selectively, based on comprehensive economic studies, and must not harm domestic industries. The entry of US products will certainly increase the level of competition, especially in a market that is already flooded with goods from China. Therefore, the government is required to maintain a balance between market openness and protection of national strategic sectors.
More than just maintaining bilateral relations, this tariff diplomacy step is part of Indonesia’s grand strategy to strengthen its position in the global supply chain. By prioritizing negotiations, Indonesia not only avoids the risk of detrimental trade conflicts, but also demonstrates its ability as a sovereign and rational country in making foreign policy. The decision to conclude the negotiations within 60 days, as well as agreeing on a framework for cooperation in the form of a trade and investment partnership, is a reflection of Indonesia’s economic diplomacy progress that deserves appreciation.
Of course, the challenges are not over. There are still 1 to 3 further rounds of negotiations that will determine the final direction of this cooperation. However, positive signals are already very visible from both parties. With an approach based on common interests and a spirit of partnership, Indonesia shows that courage does not always mean challenging, but rather being able to dialogue with a high head and an open heart.
In the future, the Indonesian people are expected to fully support the government’s steps in responding to global economic policies, including policiestariffs from strategic partner countries such as the United States. Public support is essential to strengthen Indonesia’s position in international forums, while ensuring that all policies taken by the government are truly rooted in the aspirations of the people and in the national interest. Let’s work together to maintain Indonesia’s economic sovereignty through smart diplomacy and strategic policies. In this way, Indonesia will not only survive, but also grow as a major player in the world economic arena. )* The author is a student at a private university in Jakarta.
