What US President Trump’s tariff pause means for Indonesia
As global trade faces rising tensions, Indonesia is navigating a delicate path following the U.S. imposition of up to 32% tariffs on its exports. A 90-day “strategic review” pause offers temporary relief, but not certainty. Rather than retaliate, Indonesia has responded with diplomatic measures—reducing import duties on U.S. goods, pledging to increase energy and agricultural purchases, and eliminating import quotas to show commitment to global trade norms.
These moves aim to signal cooperation while safeguarding long-term economic interests. However, the risks remain. With China shifting exports and global protectionism on the rise, Indonesia must balance openness with stronger trade defenses, protect key industries like apparel and footwear, and accelerate diversification beyond the US-China trade axis. The current pause is not a solution but a narrow window for Indonesia to modernize, rebalance, and reinforce its position in the global economy.