Appreciation of Trump’s Tariff Policy Diplomacy Approach Maintains Indonesia-US Trade Cooperation
By: Andika Pratama)*
The government has demonstrated resilience and precision in responding to the dynamics of global trade policies, including the protectionist tariff policy that was once again echoed by former US President Donald Trump. In a global climate full of uncertainty, Indonesia’s economic diplomacy strategy has proven to be an approach that is not only defensive, but also constructive in maintaining the sustainability of bilateral trade relations between Indonesia and the US.
Indonesia’s economic diplomacy steps have received direct recognition from the United States government. This was reflected in a bilateral meeting between Coordinating Minister for the Economy Airlangga Hartarto and Finance Minister Sri Mulyani Indrawati with high-ranking US officials on the sidelines of the Spring Meetings and the G20 forum.
On that occasion, the US government expressed its appreciation for Indonesia’s responsive and proactive attitude in responding to the new tariff policy that tends to be reciprocal and protectionist. Indonesia is considered to be one of the countries capable of navigating global challenges with a careful approach, through open dialogue and concrete cooperation proposals.
This diplomatic stance shows Indonesia’s maturity in responding to external pressure. Rather than showing an emotional or confrontational reaction, the Indonesian government is taking a rational and collaborative approach. This approach is in line with President Prabowo Subianto’s direction to strengthen the foundation of the national economy through strategic cooperation, reform, and progressive deregulation.
Indonesia’s economic diplomacy steps are not only aimed at easing trade tensions, but also opening up new space to strengthen Indonesia’s position in the global trade order. Indonesia’s active role as a “first mover” in the reform of the World Trade Organization (WTO) is an indicator that Indonesia is not only a follower of change, but is actually a major player in shaping the new architecture of world trade. This commitment not only increases Indonesia’s credibility in the eyes of trading partners, but also strengthens the stability of the regional economy.
Appreciation for Indonesia’s approach also came from the legislative circles. Member of Commission VII of the Indonesian House of Representatives, Muhammad Hatta, assessed that the new tariff policy initiated by Donald Trump more reflected panic over the difficulties of the US domestic industry in facing global competition. According to him, Indonesia does not need to get caught up in a hasty or emotional reaction. Instead, Indonesia must remain focused and calm in formulating a mature and measured national strategy. The belief that Indonesia is an important trading partner for the US, especially in leading sectors such as textiles, furniture, and wood, is a strong foundation for maintaining balance in bilateral trade relations.
Furthermore, collaboration between business actors, academics, and government is an important element in responding to the challenges of tariffs and global trade dynamics. Deputy Chairperson of the Indonesian Chamber of Commerce and Industry, Aviliani, emphasized the importance of viewing the crisis as an opportunity to strengthen national competitiveness. According to her, the formation of a joint committee involving all stakeholders is proof of Indonesia’s seriousness in formulating adaptive and long-term policies.
Support for fiscal and non-fiscal incentives, measured deregulation, and strengthening trade cooperation through international agreements such as RCEP, TIFA, and EU-CEPA are strategic steps aimed at expanding market access and reducing dependence on traditional markets such as the United States and China. Export diversification and exploration of non-traditional markets are now the main focus of national business actors in facing global uncertainty.
On the other hand, Indonesia’s economic diplomacy also pays attention to the geopolitical dimension and global demographic transformation that also affect the trade climate. In this context, cross-sector synergy is very important. The government and business actors need to continue to strengthen the foundation of the national economy through sustainable reform, research, and innovation. Active economic diplomacy will be able to create a competitive business climate that is also adaptive to global challenges.
The positive response from the US government to Indonesia’s approach reflects the success in building healthy communication and mutual respect between two countries with significant trade relations. This optimism will be an important capital in continuing the technical negotiation process aimed at strengthening trade certainty, supporting national exports, and maintaining regional stability amid uncertain global dynamics.
Indonesia has shown that economic diplomacy conducted wisely, comprehensively, and inclusively can reduce external pressure without sacrificing national interests. This approach is an example for other developing countries in facing increasingly strong protectionism amid geopolitical turmoil.
By continuing the collaborative spirit and measured diplomatic strategy, Indonesia is on the right track to maintain its strategic position in the international trade map and strengthen its economic resilience in the future. This is a real manifestation that diplomacy is not only a foreign policy tool, but also a main pillar in maintaining the sustainability of national economic development.
)* The author is a contributor to Jabbar Trigger.com
