JAKARTA – In response to the 32% import tariff imposed by U.S. President Donald Trump, Indonesia has opted for a diplomatic and innovative approach to safeguard its economic interests. This strategy reflects a focus on negotiation and trade diversification, rather than retaliatory actions that could further escalate tensions.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia would not take countermeasures. Instead, the government aims to strengthen trade relations with the U.S. by increasing imports of American products, including energy and agricultural commodities.
“Indonesia will not take retaliatory actions. On the contrary, the government is working to enhance trade relations as part of a strategy to reduce Indonesia’s trade surplus with the United States,” said Airlangga.
Professor Sinta Dewi Rosadi, a senior legal scholar from the Faculty of Law at Padjadjaran University, explained that to strengthen Indonesia’s position in trade negotiations, the government may consider offering additional concessions—such as lowering import tariffs on U.S. products including steel, mining outputs, and medical equipment.
“This step is expected to open new investment opportunities from U.S. companies in Indonesia’s energy and manufacturing sectors,” she added.
Meanwhile, Deputy Finance Minister Suahasil Nazara emphasized that the U.S. tariffs should serve as a wake-up call for Indonesia to accelerate economic reforms and diversify its export markets. Overreliance on certain markets, he said, leaves the country vulnerable to protectionist policies of its trading partners.
“Strategic measures must be taken promptly to mitigate these risks, including expanding access to non-traditional markets and boosting the competitiveness of domestic products,” Suahasil noted.
Indonesia is also exploring opportunities to strengthen trade ties with other countries, including fast-tracking negotiations on free trade agreements with the European Union and various Asian nations. This approach is aimed at reducing dependence on specific markets while broadening access for Indonesian exports.
Overall, Indonesia’s response to the U.S. import tariffs demonstrates a pragmatic and proactive approach. By prioritizing diplomacy, trade diversification, and economic reform, the country is working to maintain economic stability and strengthen its position in an increasingly complex global economy.
