Government Pushes Export Market Diversification to Face Trump’s Import Tariffs and Global Turbulence
Jakarta — The Indonesian government is actively responding to increasingly complex global economic dynamics, especially due to escalating geopolitical conflicts and renewed protectionist tariff policies promoted by the United States under President Donald Trump. One of the strategic priorities now is diversifying export markets, particularly for key commodities such as crude palm oil (CPO).
Ardi Praptono, Director of Oil Palm and Other Palms at the Ministry of Agriculture, stated that the military tensions between India and Pakistan have raised concerns about the continuity of Indonesia’s CPO exports to these countries.
“We see the current developments in the India-Pakistan conflict; it will indeed affect our exports. Therefore, mitigation is crucial. We must quickly penetrate new markets,” said Ardi.
The government, he added, has prepared tactical measures targeting non-traditional markets such as countries in Africa and East Asia. Egypt, for example, has expressed interest in establishing trade cooperation on CPO with Indonesia.
“This step reflects the government’s concrete commitment to maintaining national export stability and strengthening economic resilience amid global challenges,” he added.
Meanwhile, the reciprocal tariff policy announced by U.S. President Donald Trump on several Indonesian commodities has also received serious attention from the government. Although its implementation has been postponed until July 9, 2025, the government views this as an important warning to accelerate reforms and export market expansion strategies.
Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, conveyed that the government will not remain passive in facing global pressures. He encouraged MSME players not to rely on a single market and to begin exploring export potentials in other developing countries.
“The current global conditions demand that we be more adaptive and innovative. We must turn challenges into opportunities. The domestic market and alternatives in Asia and Africa are very promising,” said Maman.
The government is also promoting a long-term strategy through MSME sector clustering. Thousands of micro-enterprises are grouped into business holdings to reduce production costs, increase efficiency, and scale up output.
“With this strategy, our MSMEs will not only survive but also grow and become global players,” Maman added.
This market diversification effort not only reflects the government’s response to crisis but also demonstrates a long-term vision to build a more resilient economy that is less vulnerable to global fluctuations. The government’s decision to promptly open new markets, expand trade partnerships, and equip business actors with strategic policies is a tangible form of responsive, progressive, and proactive leadership.
With economic resilience strengthened through cross-sector synergy and the courage to take tactical steps, Indonesia shows its readiness to become a major force in an increasingly competitive global trade landscape.
