Donald Trump
STRATEGIC ASSESSMENT. National Economic Council (DEN) Chair Luhut Binsar Pandjaitan said that the Indonesian delegation, led by Economic Affairs Coordinating Minister Airlangga Hartarto, along with the Foreign Affairs Ministry, Trade Ministry, and DEN, will hold reciprocal tariff negotiations with U.S. authorities on April 17. According to Luhut, DEN has already provided negotiation strategy recommendations to the delegation. He also mentioned that Indonesia has prepared a proposal to negotiate reciprocal tariffs with the United States.
National Economic Council (DEN) Chair Luhut Binsar Pandjaitan said that Chinese investors remain very interested in Indonesia and Donald Trump’s reciprocal tariffs have had little impact. Luhut said that the impact of the trade war will be greater if the Chinese economy does not improve.
The Indonesian government has submitted a formal request for a meeting between Prabowo and Trump, as Jakarta seeks to step up the negotiations over the latter’s new trade tariff policies. Speaking on the sidelines of the presidential visit in Ankara, Foreign Minister Sugiono confirmed that the government had sent an official letter to White House seeking to schedule a meeting between the two leaders. He noted that the request was made well before Trump announced its so-called “reciprocal” tariff policy.
Given the latest development of global dynamics, the minister added that both leaders would likely discuss the tariffs, should the meeting take place. “It depends on when we receive confirmation,” Sugiono added.
Former President Susilo Bambang Yudhoyono (SBY) urged the Indonesian government to respond calmly and strategically to the sweeping US tariffs. Speaking at a discussion forum in Jakarta, SBY said he had personally advised Prabowo to avoid emotional or reactive decisions and instead adopt a measured, long-term approach.
Infrastructure and Regional Development Coordinating Minister Agus Harimurti Yudhoyono (AHY) while opening a panel discussion dubbed “Current Global Dynamics and Developments: Geopolitics, Security, and the Global Economy” hosted by The Yudhoyono Institute warned of the global impact of the import tariff war initiated by President Donald Trump. He predicted that Trump’s policy could lead the world into a collective resistance against the United States.
The textile industry is set to be among the hardest hit by the recent United States tariff hikes, with 40 percent of Indonesian textiles and apparel exports bound for the American market.
Textile industry associations have suggested increasing imports of raw materials like cotton from the United States as a bargaining chip to balance bilateral trade and potentially lower the looming tariff, as well as protecting the domestic market by constraining imports.
The Indonesian government should also negotiate with China in response to the Trump tariff policy, National Economic Council (DEN) Deputy Chair Mari Elka Pangestu said during “Dynamics and Current Developments in the World: Geopolitics, Security, and Global Economy.” She noted that China is preparing to face off with the U.S. while simultaneously seeking to strengthen ties with ASEAN.
According to Fajar Fitrianto, a senior vice president at a leading Indonesian state-owned bank, for Indonesia, the 90-day tariff pause offers neither clarity nor comfort. It merely presses “pause” on the chaos, not “cancel.” And as the global system tilts further into protectionist reflexes and retaliatory theatrics, Indonesia must remain sharp-eyed and steady-footed. Because while others play chess, some pieces, like us, risk becoming the board.
To mitigate this, Indonesia must complement liberalization with stronger trade defense tools: anti-dumping investigations, safeguard mechanisms, countervailing duties and faster monitoring systems. The window to act is now, before the tariff machinery restarts or reshapes itself. Because a 90-day pause is not a detour, it’s a countdown.
According to Tenggara Strategics, United States President Donald Trump has reignited global trade tensions by imposing reciprocal import tariffs on 180 trading partners, with rates starting at 10 percent and rising significantly for 60 countries, including Indonesia, which now faces a 32 percent tariff, although now paused for three months. While Indonesia benefited modestly from the first US-China trade war in 2018, the dynamics of this second wave of trade retaliation demand a recalibrated strategy to unlock potential economic gains.
The US has long grappled with a twin deficit, budget and current account, dating back to the 1980s. President Trump has consistently blamed trade deficits on unfair practices by key partners such as China, Canada, Mexico and, to some extent, Indonesia. His administration argues that reducing these imbalances is essential to protecting American industry and jobs.
