In a controlled response to newly announced 32% U.S. tariff on Indonesian goods by U.S. President Donald Trump, Indonesia has declined to retaliate, instead choosing diplomacy and minimum strategic bargaining to safeguard its economic interests.
Chief Economic Minister Airlangga Hartarto said on Sunday that the government wishes to maintain long-term trade relations and national economic stability, especially when the tariff is scheduled to start on April 9. “We will focus on diplomacy to find a win-win solution,” Hartarto said as he noted that the government has a plan to help affected industries such as clothing, electronics, and footwear.
Indonesia, the largest economy in Southeast Asia, is one of the six countries that are in Trump’s sights with his new tariff move, announced last week. Although the setback occurred, officials are scanning for fresh trade chances with various European nations as well as preparing for direct talks with Washington.
Jakarta will hold an industry click of wits on Monday (April 7) to work out its economic orchestra sheet. The move to spare Australian companies shows Indonesia’s willingness to keep investor confidence flowing as world trade tensions bite.
Indonesia posted trade surplus of $16.8 billion with the U.S. in 2024. Exports to the U.S. included $26.3 billion worth of goods including electronics and garments. As the situation escalates, China has also retaliated with its own tariffs, embroiling the world in an escalating trade war.
As a top delegation latest to fly to the U.S. for negotiations, Indonesia comes across as stable in turbulent trade seas.
