The Government’s Strategy in Negotiating Trump’s Tariffs Opens Opportunities for National Economic Transformation
By: Aldia Putra
The Indonesian government has taken decisive steps in responding to the trade tariff policy implemented by the United States (US) in early April 2025. Rather than opting for retaliation, the government has prioritized a diplomatic approach by initiating strategic negotiations, which have now entered the technical phase.
Thanks to the negotiations conducted by the Indonesian government with the United States, this effort has further accelerated the realization of broader national economic transformation.
This move is not merely a short-term strategy to ease trade tensions; it also serves as a crucial momentum to further advance comprehensive national economic transformation.
The negotiation delegation, led directly by Coordinating Minister for Economic Affairs Airlangga Hartarto, is supported by key officials across ministries, including Foreign Minister Sugiono, Finance Minister Sri Mulyani Indrawati, and Deputy Finance Minister Thomas Djiwandoni.
The presence of these prominent figures reflects the government’s seriousness in crafting a strong bargaining position while designing a framework for cooperation that will have a systemic impact on the future direction of the national economy.
Airlangga Hartarto emphasized that every approach in the negotiation process is oriented toward safeguarding national interests. Five main priorities within the negotiation framework include ensuring energy security, expanding export market access, promoting ease of doing business through deregulation, building supply chains for strategic industries such as critical minerals, and strengthening technology transfer in vital sectors such as healthcare, renewable energy, and agriculture.
The Chairperson of the Indonesian Employers Association (APINDO), Shinta Widjaja Kamdani, viewed the government’s choice to pursue negotiation as a mature strategic decision.
The business community responded very enthusiastically to this move, recognizing that the process not only fosters stability in Indonesia-US bilateral relations but also opens up tangible opportunities to revitalize various domestic industrial sectors.
APINDO has also provided substantive input to the government, ranging from recommendations on US commodities that could be imported without harming local industries, to pushing for deregulation and the strengthening of trade remedies.
In this process, the business sector is not merely an observer. On the contrary, business actors are actively involved in formulating long-term strategies to enhance national competitiveness.
APINDO even called for the establishment of a Deregulation Task Force to accelerate the adjustment of domestic regulations, which have long been major obstacles for investors and industry players.
Their support goes beyond formalities and is realized through direct collaboration in building supply chains, creating competitive business ecosystems, and exploring cross-sector investment opportunities.
The Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), Anindya Novyan Bakrie, also viewed the government’s approach to addressing trade imbalances as a prudent and progressive move.
According to him, negotiations are the ideal means to create a healthy equilibrium without causing new frictions that could harm national interests. He emphasized the importance of anticipating post-negotiation conditions by strengthening key export sectors such as electronics, footwear, and garments.
KADIN is preparing a business mission to the US to strengthen dialogue with the US Chamber of Commerce, as part of efforts to directly understand US market demands.
This strategy aims to more precisely map the needs of trading partners, while positioning Indonesia as a strategic supplier of high-value products.
Additionally, cooperation potentials are also being mapped in key sectors such as food, agriculture, and energy commodities, which are of major interest to the US.
The technical negotiation process, which officially began in mid-April 2025, has also been marked by the signing of a bilateral agreement concerning the treatment of information in the context of trade and investment.
This agreement strengthens Indonesia’s position as a serious and transparent trading partner committed to long-term relations with the US.
The Indonesian delegation team has also actively engaged with various stakeholders from the US private sector, such as Amazon, Boeing, Google, Microsoft, and organizations like the US-ASEAN Business Council and the Semiconductor Industry Association.
Support from various US business entities reflects growing confidence in the direction of Indonesia’s economic policies.
On the other hand, Indonesia’s readiness to engage in dialogue and formulate long-term cooperation frameworks further underscores the national economy’s shift towards a more collaborative, open, and comparative advantage-based paradigm.
National economic transformation no longer relies solely on fiscal stimulus or internal structural reforms but also hinges on successful economic diplomacy at the global level.
The government has crafted a strategy not only to respond to external pressures but also to turn these challenges into opportunities to strengthen the national economic foundation.
The negotiation with the US is not merely about tariff reductions or market access; it reflects a broader vision to position Indonesia strategically within the global trade architecture.
These negotiations bring new hope that Indonesia’s economic growth can be anchored in mutually beneficial, long-term international cooperation that emphasizes inclusive development.
In an increasingly dynamic global economic landscape, strategies like this are crucial for Indonesia to compete, survive, and thrive through the collective strength of government, businesses, and global strategic partners.
(*) The writer is a contributor to Ruang Baca Nusantara.
