Rebalancing Indonesia’s Trade Policy: After Prabowo’s First Year

Indonesia’s trade policy under President Prabowo reflects a dual-track approach amid rising global trade uncertainty. While exports have shown short-term resilience, the government is balancing deeper integration through trade agreements with the EU and Canada against more protectionist industrial policies, including local-content rules, mineral downstreaming and selective non-tariff measures. Regulatory adjustments signal greater openness, but continued discretion and negotiated exemptions create uncertainty for investors. Whether this strategy can strengthen long-term competitiveness will depend on using new trade agreements as anchors for domestic reform, improving transparency, and aligning industrial policy with a more outward-looking trade framework.

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