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Concrete Steps of Indonesian Economic Diplomacy Quick Response to Overcome Trump Tariffs

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Jakarta, — The Indonesian government has demonstrated firmness and a quick response in dealing with US President Donald Trump’s trade tariff policy which has disrupted global economic stability.

Under the direction of President Prabowo Subianto, the national economic team led by Coordinating Minister for Economic Affairs Airlangga Hartarto is taking concrete steps in economic diplomacy to protect national interests while strengthening strategic relations with the United States.

“In the negotiations, we have met with the US Trade Representative, Secretary of Commerce Lutnick, Secretary of Treasury Bessent, Director of the National Economic Council, and also with several other countries,” said Airlangga.

He added that President Prabowo welcomed the positive response from the US government to the comprehensive proposal submitted by Indonesia.

The proposal includes a comprehensive solution not only on trade tariffs, but also non-tariff barriers, increasing balanced exports and imports, and strategic investment. “So the trade balance is around 19, we give more than 19.5. Direct buying and selling is 19.5, but we also have projects that we will buy from America,” Airlangga continued.

One of them is Indorama’s USD 2 billion investment in Louisiana for the Blue Ammonia project.

The government also raised the issue of reciprocal tariffs for Indonesia’s leading commodities, demanding an “equal level playing field” with competing countries such as Vietnam and Bangladesh.

As a follow-up, President Prabowo formed three task forces: the Trade and Investment Negotiation Task Force, the Job Opportunity Expansion and Layoff Mitigation Task Force, and the Policy Deregulation Task Force. In addition, the Investment Climate Improvement and Business Licensing Acceleration Task Force was also formed.

In the spirit of maintaining the confidentiality of national strategies, Indonesia has signed a non-disclosure agreement (NDA) with the US government. This step shows Indonesia’s seriousness in maintaining the credibility and integrity of the diplomatic process.

President Prabowo emphasized that Indonesia continues to prioritize the principle of “win-win solution” and treats all trading partners equally. Indonesia’s economic diplomacy is now not only reactive, but proactive and strategic.

Deputy Chairperson of the Indonesian Chamber of Commerce and Industry, Aviliani, reminded of the importance of diversification and utilization of various international trade agreements.

“Product diversification and exploration of non-traditional markets are strategic steps to reduce dependence on the US and China,” he explained.

He emphasized that cross-sector synergy, policy reform, and continuous research are the main foundations in creating resilient economic competitiveness amidst global uncertainty.

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