By Pradipta Yudatama )*
Indonesia is once again faced with a serious global challenge. The new import tariff policy announced by the President of the United States, Donald Trump, is a strong signal of strengthening protectionism in international trade. For a country like Indonesia, which has strategic trade relations with the United States, this policy certainly has significant implications, both for export performance, national industry, and domestic socio-economic stability.
However, optimism still needs to be put forward. President Prabowo Subianto expressed his belief that Indonesia has a strong economic foundation to face this dynamic. History records that this nation has escaped several global crises, such as in 1998, 2008, and the Covid-19 pandemic. This resilience is a reflection of the basic strength of the national economy built with a spirit of mutual cooperation and unity. The key to Indonesia’s success, as emphasized by President Prabowo, lies in the harmony and collaboration of all elements of the nation.
President Prabowo also showed his commitment to immediately find a concrete solution to the impact of the policy. One of them is through meetings and dialogue with industry players, as an initial step in mapping the problems and finding common ground. This step is very important to avoid the potential for mass layoffs that could disrupt social stability and widen economic disparities.
The Indonesian Chamber of Commerce and Industry (Kadin) also paid serious attention to the United States’ reciprocal tariff policy. Kadin Deputy Chairman for Special Economic Zones, Industrial Zones and National Strategic Projects, Akhmad Ma’ruf, urged the government to immediately formulate strategic steps to protect domestic industries. According to him, delays in taking policies could result in major losses, especially for strategic industrial areas such as the Riau Islands which are one of Indonesia’s centers of economic growth.
In this context, the strategy taken by the government through a negotiation approach deserves appreciation. Coordinating Minister for Economic Affairs, Airlangga Hartarto, explained that Indonesia will prioritize trade diplomacy as the main response to Trump’s tariff policy. A wise and proportional decision, considering that negotiations open up space for dialogue and more constructive solutions amid global tensions.
The Indonesian government, through various related ministries such as the Ministry of Finance, Trade, Industry, and Foreign Affairs, has held a coordination meeting to formulate a strong bargaining position. In the near future, Indonesia will submit a concrete proposal to the United States Trade Representative (USTR) as part of an effort to bridge differences in interests and maintain the sustainability of bilateral trade relations.
This step is also in line with the approach taken by other ASEAN countries, such as Singapore and Malaysia, which both prioritize negotiations in dealing with US policies. Indonesia will also push for the strengthening of the Trade and Investment Framework Agreement (TIFA) which was signed in 1996, but is now considered in need of updating to adapt to global economic dynamics.
Furthermore, in the medium to long-term strategy, the government is trying to improve the balance of trade with the United States. President Prabowo gave instructions so that the trade deficit, which reached around 18 billion US dollars, could be reduced by increasing imports of strategic goods from the United States. Among them are wheat, cotton, and oil and gas products. This step is considered to not only balance the balance, but also strengthen national food and energy security.
The development of domestic infrastructure and industry is also continuing as part of the strategy to strengthen national competitiveness. A number of National Strategic Projects (PSN), such as the construction of oil refineries, will continue to be carried out. The government is opening up the possibility of importing several important components from the United States, as part of mutually beneficial economic cooperation.
All of these steps illustrate one thing: Indonesia is not sitting still. The government, business world, and society must unite in overseeing the direction of the national economy. Challenges from abroad, including Trump’s tariff policy, can only be overcome if all elements of the nation demonstrate a solid, responsive, and collaborative attitude. In a situation like this, the spirit of mutual cooperation must once again become the main strength of the Indonesian nation.
This momentum is also a reminder that economic resilience does not only rely on exports. Indonesia needs to strengthen the domestic market, encourage diversification of export products, and develop leading sectors that have high added value. Investment in human resources, technological innovation, and the development of green industries must continue to be encouraged to ensure that the national economy is not easily shaken by global dynamics.
In facing this era of uncertainty, Indonesia needs firm, wise, and inclusive leadership. President Prabowo has shown positive signals through the initial steps taken. Now is the time for all components of the nation to move together to maintain economic stability, create jobs, and ensure that people’s welfare is maintained. Only with unity can Indonesia become a strong and sovereign nation in facing any global challenges.
)* the author is an observer of economic policy
