By: Astrid Widia )*
The increase in import tariffs announced by US President Donald Trump some time ago has created new dynamics in the global trade map. However, Indonesia sees this as a strategic opportunity to strengthen the national economy and accelerate the structural transformation initiated by President Prabowo Subianto since the beginning of his administration.
The rapid and measured response from the Indonesian government shows its readiness in reading the direction of global geopolitical winds. Minister of Culture, Fadli Zon emphasized that President Prabowo’s strategic policy is a long-term step to build the nation’s economic independence. The government did not choose to be reactive to global pressure, but rather used this momentum to expand the reach of trade and strengthen the foundation of the domestic economy.
One of the main steps is diversifying trading partners. Fadli said that President Prabowo’s strategy in expanding partnerships with BRICS, ASEAN, and Global South countries is a form of anticipation of increasingly aggressive trade protectionism. By becoming part of RCEP, which covers 27 percent of world trade, and encouraging accession to the OECD, Indonesia is strengthening its foothold in a more diverse and stable global supply chain. Not only that, Indonesia also continues to strive for the completion of various comprehensive trade agreements such as IEU-CEPA, I-EAEU CEPA, and CP-TPP.
A long-time parliamentarian, Fadli Zon has pushed for trade agreement negotiations with the European Union and other regional entities. In his view, market expansion is a vital instrument to ensure the sustainability of Indonesia’s export growth, especially as traditional markets such as the US begin to lock themselves in with high tariffs.
The second step that is no less important is the acceleration of natural resource downstreaming. The government is now focusing on building domestic added value through the industrialization of minerals, plantations, and the marine sector. Fadli sees the establishment of the Danantara Investment Management Agency (BPI) as a form of the government’s seriousness in ensuring that downstreaming runs with good governance and is in favor of the people’s welfare.
The importance of downstreaming lies not only in the potential for increasing export value, but also in its impact on job creation and reducing dependence on raw materials. In a long-term economic framework, this strategy will form a strong and competitive national industrial base amidst global uncertainty.
President Prabowo’s third strategy is to increase domestic consumption by strengthening people’s purchasing power. The Free Nutritious Meal Program (MBG) which targets 82 million beneficiaries by the end of 2025 is a concrete step to boost domestic demand. Fadli called this policy a new foundation for national economic resilience, because it encourages economic turnover from below and reduces pressure on the export sector when the global market is uncertain.
In the rural sector, the plan to establish 80,000 Red and White Village Cooperatives (KDMP) is also a new focus. Through these cooperatives, villages will become independent centers of local economic growth, with a multiplier effect on labor absorption and more equitable income distribution. Fadli believes that strengthening villages is a primary prerequisite in building national economic resilience.
In terms of legislative support, Deputy Speaker of the Indonesian House of Representatives, Adies Kadir, expressed his full support for the Government’s policy in dealing with reciprocal tariffs from the US. He also encouraged the government’s strategy to include deregulation of policies that hinder investment, as well as increasing national competitiveness through the creation of a friendly investment climate. According to him, this is very important so that Indonesia not only survives, but excels in regional and global competition.
Similarly, Chairman of the Surabaya City Chamber of Commerce and Industry, Ali Affandi, sees President Trump’s tariff policy as a signal of changes in the global production map. Multinational companies from the US and Europe will likely seek new, more neutral and efficient production locations. Indonesia, with its large population, strategic position, and abundant resources, has a great opportunity to become a new manufacturing base in the region.
Andhi also highlighted the opportunities for non-US exports that will increase, especially to the Middle East, Africa, and Southeast Asia. With the note, Indonesia must be alert in optimizing investment incentives, increasing logistics efficiency, and ensuring the availability of skilled labor. If this can be answered, Indonesia will not only be safe from global protectionism, but also become a new major player in the international supply chain.
Trump’s tariff policy has indeed disrupted the stability of global trade, but behind the challenges lies a great opportunity for countries that are able to adapt and move quickly. Indonesia, under the leadership of President Prabowo, has shown that this country is not only ready to face challenges, but is also able to turn them into a momentum for national economic revival.
Cross-sector synergy—from trade diplomacy, downstreaming, strengthening domestic consumption, to investment policy reform—is a comprehensive strategy that not only addresses short-term dynamics, but also lays the foundation for long-term economic sovereignty.
Now is the time for the public to give support and appreciation for the government’s strategic steps. Indonesia has all the prerequisites to excel in this new global economic landscape. Let us be optimistic and believe that this trade storm will actually lead Indonesia to a stronger and more independent future.
)* The author is an economic observer
