By: Glen Sanjaya
The Indonesian government has demonstrated a strong commitment to maintaining healthy trade relations with the United States amid uncertainty brought on by Washington’s unilateral import tariff policies. Rather than taking a confrontational route, the government has opted for diplomacy and negotiation as strategic steps believed to lead to mutually beneficial solutions.
The high tariff policy announced by U.S. President Donald Trump was the primary trigger for Indonesia’s swift response. The government assessed that the imposition of a 32 percent tariff on Indonesian products not only disrupts trade stability but also threatens the competitiveness of national exports. However, instead of responding with similar actions, Indonesia chose a more constructive and rational path.
Minister of Trade Budi Santoso explained that a diplomatic approach is the most appropriate choice under these circumstances. He argued that retaliation would only worsen the economic situation and negatively impact the citizens of both countries. Therefore, the government has intensified coordination with domestic stakeholders, including industry players and trade associations, to build a strong negotiating position.
Concrete diplomatic steps were immediately taken. Coordinating Minister for Economic Affairs Airlangga Hartarto led negotiation efforts with the United States through a series of meetings with high-ranking officials in Washington. During these visits, Indonesia successfully established a bilateral negotiation framework to take place over the next 60 days, with the aim of reaching an agreement that would prevent the permanent implementation of tariffs.
The negotiation proposals brought by the Indonesian delegation reflect the government’s seriousness and solution-oriented approach. Through the revitalization of the Trade and Investment Framework Agreement (TIFA), the government proposed concrete measures, such as easing Local Content Requirements (TKDN) for U.S. information technology products, as well as deregulating several non-tariff barriers. Indonesia also expressed willingness to balance trade by increasing imports of U.S. agricultural and energy products.
This effort not only illustrates diplomatic wisdom but also firmness in safeguarding national interests. The government has shown that openness to dialogue is not a sign of weakness, but a smart strategy to avoid prolonged conflict and open doors for more productive long-term cooperation.
This initiative has also received support from the parliament. Marwan Cik Asan, a member of Commission XI of the House of Representatives (DPR RI), praised the government’s approach. He stated that choosing diplomacy and offering incentives to domestic industries is a smart strategy that balances protecting national interests and active engagement in global trade.
He also noted that evaluating restrictions and bans on goods is an integral part of efforts to maintain Indonesia’s export competitiveness. In his view, President Prabowo Subianto has set the right policy direction by encouraging bureaucratic simplification and improving efficiency for business actors. This move is deemed crucial to strengthen Indonesia’s position in the face of global trade dynamics.
Support for regional cooperation is also a key element of the government’s strategy. In various international forums, Indonesia has voiced the importance of ASEAN solidarity in responding to global trade challenges. The government continues to push for ASEAN member states to remain united, reject fragmentation, and strengthen their collective stance in negotiations with trade partners like the United States.
Indonesia’s diplomacy is not limited to trade alone. The Ministry of Foreign Affairs has also been actively strengthening bilateral relations with Washington through strategic meetings. During his visit to the U.S., Foreign Minister Sugiono presented Indonesia’s initiatives in downstream industries, energy security, and human capital development as part of a long-term cooperation framework. These efforts confirm that Indonesia is not merely reacting to the situation but is also building a stronger and more inclusive partnership foundation.
The government is also preparing a package of fiscal and non-fiscal incentives to support national export competitiveness. Some policies currently being developed include reduced import duties, tax incentives for imports, and administrative deregulation to stimulate exports. This ensures that businesses can remain productive despite external pressures.
The government’s overall steps reflect consistency and determination in protecting national economic interests. Indonesia has chosen the path of dialogue, not coercion. This strategy is not only a reflection of diplomatic maturity but also a long-term vision to establish Indonesia as a reliable and competitive trading partner in the eyes of the world.
In this context, Indonesia’s efforts are not merely about maintaining market access to the U.S., but also about strengthening its bargaining position and expanding investment opportunities. The choice to pursue diplomacy highlights leadership that prioritizes the interests of the people and national industries without missing opportunities in an ever-evolving global economic landscape. The government remains vigilant, adaptive, and proactive in managing challenges while paving the way for fairer and more sustainable trade.
The Indonesian government has shown that mature diplomacy is a long-term strategy to enhance the country’s position as a trusted and competitive trading partner globally, while safeguarding the interests of the people and national industries.
*) Public Policy Analyst
