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Effective Government Strategies to Tackle the Challenge of Trump’s Import Tariffs

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By: Robertus Subagja

Global tensions have escalated once again following the decision by U.S. President Donald Trump to reimpose high import tariffs on several countries, including Indonesia. This policy clearly affects the stability of international trade, particularly for developing nations striving to strengthen their economic foundations. However, under the leadership of President Prabowo Subianto, the government has prepared smart and comprehensive strategies to face these global challenges in a constructive, intelligent, and measured manner.

Noudhy Valdryno, Deputy for Dissemination and Media Information at the Presidential Communication Office (PCO), revealed that President Prabowo has designed three main strategies to respond to the increasingly protectionist trade policies of the United States.

First, Indonesia seeks to expand global partnerships through active participation in various economic forums and multilateral cooperation. President Prabowo is seriously pursuing Indonesia’s membership in major groups such as BRICS. This is a significant step to strengthen Indonesia’s bargaining position in global trade.

In addition to BRICS, Indonesia is also reinforcing its position within the Regional Comprehensive Economic Partnership (RCEP)—a multilateral trade agreement involving ASEAN, Australia, Japan, South Korea, and New Zealand. Indonesia also has access to other economic cooperation schemes such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), and the Indonesia-Eurasian Economic Union CEPA (I-EAEU CEPA). Indonesia’s involvement in these forums demonstrates the government’s strategic diplomatic choice to protect national interests without resorting to confrontational measures that could be detrimental.

The second strategy focuses on accelerating domestic industrial downstreaming. Indonesia has long been known as a country rich in natural resources, yet the added value of its commodities remains underutilized due to the dominance of raw material exports. Through downstreaming policies, the government aims to process raw materials such as nickel, bauxite, coal, and palm oil domestically before exporting them. This approach not only enhances export value but also creates jobs, boosts industrial competitiveness, and reduces dependency on foreign markets.

The third strategy is to strengthen the purchasing power of the people. In times of global uncertainty, maintaining strong domestic consumption is key to economic stability. Programs such as free nutritious meals, free health check-ups, and social protection will continue to be consistently implemented. The government recognizes that economic stability is determined not only by trade balances but also by the resilience of the people’s economy.

In line with this, Coordinating Minister for Food Affairs Zulkifli Hasan emphasized that Indonesia will not get involved in a trade war. The government prefers an elegant diplomatic approach rather than retaliatory tariff actions. “We will not take retaliatory steps. Indonesia will pursue diplomacy and negotiation. We will carefully re-evaluate the various commodities we import from the United States,” he said. This approach also reflects Indonesia’s diplomatic maturity in dealing with global geopolitical dynamics.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the government is preparing an economic policy package in response to potential negative impacts from President Trump’s tariff policies. This package will cover sectors including trade, investment, energy, education, and defense. The government aims to ensure that every affected sector receives adequate stimulus and support. Through bilateral negotiations with the U.S., efforts are also underway to secure fair and equal treatment between the two countries.

Furthermore, this policy is not developed in isolation. The government ensures active involvement from the private sector, academia, and civil society in responding to this situation. This collaborative approach characterizes President Prabowo’s administration, which prioritizes inclusive and shared solutions. The economic diplomacy applied not only protects national interests but also creates new opportunities amid challenges.

These smart government strategies deserve appreciation as they position Indonesia strongly without being reactive. The approach taken proves that Indonesia now stands as a sovereign nation, mature in diplomacy, and visionary in economic policy. The global crisis is being used as momentum to strengthen domestic resilience, not as an excuse to retreat or become dependent on external parties.

Amid global trade turmoil, the public is encouraged to remain calm and trust the government’s ongoing efforts. The strategies applied aim not only to respond to President Trump’s tariff policies but also to build a stronger and sovereign national economic foundation. Public support is key to the success of these policies. It is time for us to unite and embrace the future with confidence and national solidarity. The government has taken action; now it is the people’s turn to strengthen the ranks in facing global challenges with optimism and collaboration.

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