Business Community Fully Supports Government’s Concrete Initiatives to Counter Trump’s Tariff Policies
By: Aulia Hawa
The government’s swift response to US President Donald Trump’s tariff policy has received full support from the business community.
When the US leader imposed reciprocal tariffs impacting many countries, including Indonesia, the government chose a strategy of negotiation over retaliation.
This approach not only demonstrated Indonesia’s diplomatic maturity but also highlighted the country’s readiness to defend its national interests through constructive dialogue.
The Indonesian delegation, led by Coordinating Minister for Economic Affairs Airlangga Hartarto, is currently conducting a series of important meetings in Washington, DC, aiming to ease tariff tensions and promote a fairer economic partnership between the two countries.
Several prominent figures are also part of the negotiation team, including Foreign Minister Sugiono, Finance Minister Sri Mulyani Indrawati, Deputy Chair of the National Energy Council (DEN) Mari Elka Pangestu, and Deputy Finance Minister Thomas Djiwandoni.
Technical meetings with US trade authorities, such as the United States Trade Representative (USTR), have opened pathways for further cooperation within the next 60 days.
The success and quick, strategic actions taken by the government have received strong support from Shinta Widjaja Kamdani, Chairperson of the Indonesian Employers Association (APINDO).
APINDO welcomed the government’s decision to avoid a confrontational approach. Shinta regarded the move as a strategic choice that reflects maturity and measured judgment, while also opening opportunities to strengthen Indonesia’s bargaining position in bilateral trade relations.
The business community has also provided comprehensive input to the government as the foundation for drafting a negotiation roadmap.
Proposals include identifying US-origin commodities, such as cotton, wheat, and crude oil, that could be imported without harming domestic industries.
In addition, businesses have advocated for the removal of non-tariff barriers, improved certification and licensing mechanisms, and strengthened anti-dumping regulations.
Shinta emphasized that while awaiting negotiation results, businesses remain actively engaged in supporting concrete policy initiatives, including advocating for the establishment of a Deregulation Task Force involving business actors.
She believes this negotiation momentum should be leveraged to accelerate structural transformation, which has long been a major barrier to enhancing national competitiveness.
APINDO sees that the negotiation efforts could pave the way toward strategic partnerships with the United States, particularly in critical minerals, technology, and education.
The business sector is prepared to embrace collaborative opportunities by strengthening supply chains, pursuing joint investments, and building a competitive industrial ecosystem on the global stage.
Airlangga Hartarto also noted that several major American companies have expressed sympathy and support for Indonesia’s efforts.
Companies such as Amazon, Microsoft, Google, and Boeing conveyed their hopes that the negotiation process would result in fairer tariffs for Indonesia.
Similarly, US industry associations like the Semiconductor Industry Association and the US-ASEAN Business Council have voiced views aligning with Indonesia’s stance.
According to Airlangga, Indonesia’s diplomatic approach has been appreciated by US authorities, including the Department of Commerce and the Department of the Treasury.
All parties have opened up technical dialogue channels and welcomed Indonesia’s cooperation proposals in five strategic sectors: strengthening supply chains, deregulation, energy security, technology access, and facilitating the export of Indonesian products to the US market.
Airlangga stated that Indonesia has signed a Non-Disclosure Agreement (NDA) with the USTR, marking the initial step in the intensive negotiation phase.
This places Indonesia among 20 countries engaged in formal tariff discussions with the US.
The government is also conducting internal consultations with stakeholders to align a more comprehensive national strategy.
Meanwhile, Ade Fernando, Chairperson of the Sarolangun Branch of the Indonesian Young Entrepreneurs Association (BPC HIPMI Sarolangun), also emphasized the urgency of addressing Trump’s tariff policy for Indonesia’s export stability.
He noted that the 32 percent tariff imposed on Indonesian exports could worsen the trade deficit and directly impact employment in labor-intensive industries.
Thus, he viewed negotiations as a wise move to safeguard the competitiveness of national products and ensure the sustainability of exports.
Ade encouraged the government to take concrete mitigation measures such as diversifying export markets and supporting the revitalization of domestic industries.
He stressed that accelerating deregulation is essential for Indonesian products to penetrate international markets with stronger competitiveness.
He also highlighted the importance of close collaboration between businesses and the government to ensure that every policy directly strengthens the national economic structure.
The overall views from the business community show that the government’s concrete initiatives to address Trump’s tariff policy are not being pursued in isolation.
Instead, these initiatives have received full support and active responses from domestic business players and strategic partners in the United States.
If well managed, these negotiations have the potential not only to mitigate the impact of protectionist policies but also to create new momentum for Indonesia’s comprehensive economic reform.
(*) The writer is a contributor to the Pertiwi Institute.
