Indonesia Needs A Clear Strategy to Navigate US-China Trade War

Alfi Dinilhaq
April 30, 2025 | 7:10 pm
SHARE
Ibrahim Kholilul Rohman, Acting Head of IFG Progress and lecturer of the University of Indonesia Ibrahim, speaks during the Investor Daily Roundtable at the Westin Hotel in Jakarta, Wednesday, April 30, 2025. (B-Universe Photo/David Gita Roza)
Ibrahim Kholilul Rohman, Acting Head of IFG Progress and lecturer of the University of Indonesia Ibrahim, speaks during the Investor Daily Roundtable at the Westin Hotel in Jakarta, Wednesday, April 30, 2025. (B-Universe Photo/David Gita Roza)

Jakarta. Indonesia needs a well-calculated strategy amid the heightening trade war between the US and China, an economist said Wednesday.

US President Donald Trump has waged a global trade war with his tariffs. Trump has slapped a 145 percent import duty on Chinese products. China has also hit back with a 125 percent import tax on American goods entering its market. At present, Indonesia is trying to bring down the 32 percent tariffs that would soon hit its US-bound goods.

Senior economist Ibrahim Kholilul Rohman said that Indonesia would only be able to survive amid the global dynamics if it had a clear strategy that emphasized national development. He also said that Indonesia should embrace a balanced approach to avoid having to pick sides.

"I believe we can't be too dependent on China because the US controls many of the world's technology standards," Ibrahim said at the Investor Daily Roundtable forum in Jakarta on Wednesday.

Advertisement

According to Ibrahim, leaving the US entirely is not a realistic option, given Jakarta's relations with Washington on technology regulations and global trade. At the same time, Indonesia cannot forget China's contribution to its economy over the past decade. China has been a major trading partner with Indonesia.

"China is very strategic in maintaining trade relations, and we can feel their influence across various sectors," Ibrahim said.

At the same time, Indonesia needs to know which sectors it needs to strengthen with the US or its rival, China.

"It is impossible for us to leave the US. Some sectors record high exports to the US. That's why this calls for a well-calculated negotiation strategy," Ibrahim said.

Trump plans to impose 32 percent tariffs on imports coming from Indonesia. The Indonesian government is currently in talks with Trump's team in hopes that Washington will slash the tariffs.

Tags: Keywords:
SHARE

Related Articles


News Jun 5, 2025 | 12:38 am

Trump Tax Bill Will Add $2.4 Trillion to the Deficit, CBO Says

The CBO also estimates an increase of 10.9 million people without health insurance under the bill by 2034.
Business May 21, 2025 | 3:20 pm

It Can Be Hard for ASEAN to Set Common Negotiation Plan on US Tariffs

An economist says that each ASEAN member is at a different stage of development, making a common US tariff negotiation plan impossible.
Business May 15, 2025 | 8:16 pm

Walmart Says It Will Raise Prices Due To Tariff Costs after Posting Solid Q1 Sales

The numbers can provide a hint as to the mood of the American shopper and how the tariffs are impacting retailers.
Opinion May 15, 2025 | 3:05 pm

Trump’s Tariff is Part of His Grand Strategy -- with A Huge Cost

Trump's tariff policy reflects a grand strategic approach rather than the belief that high tariffs alone will fix the US trade deficit
Business May 14, 2025 | 5:46 pm

‘Anything Can Happen’: Indonesia Should Focus on Domestic Market as US-China Tariff War Cools

As US-China trade war eases, Indonesia should focus on boosting its household consumption, Apindo's chairwoman Shinta Kamdani says.
Business May 12, 2025 | 9:09 pm

US Stocks Surge Following 90-Day US-China Trade Truce, Dow Jumps Nearly 1,000 Points

Stocks soar after the US and China agree to a 90-day truce in their trade war, with Dow up 957 points and S&P 500 climbing 2.6%.
Business May 12, 2025 | 2:36 am

US Makes 'Substantial Progress' in China Tariff Talks, Scott Bessent Says

There was no immediate comment from the Chinese representatives at the talks.
News May 9, 2025 | 9:36 pm

Trump Considers Lowering China Tariffs to 80% Ahead of Trade Talks

Trump proposes cutting China tariffs to 80% ahead of key Geneva talks, signaling possible thaw in escalating US-China trade war.
Business May 8, 2025 | 1:47 am

The More Trump Talks About Making Trade Deals, The More Confusing The Tariff Picture Gets

His team seems good with that, saying Trump is using “strategic uncertainty” to his advantage.
Opinion May 3, 2025 | 2:45 pm

Trump’s Tariff Offensive and the Erosion of Global Trade Governance

This analysis assesses Trump’s tariff hikes from a legal perspective, with a focus on their compliance -- or lack thereof -- with WTO rules.

The Latest


Special Updates 6 hours ago

Pegadaian Sees Highest Growth in South and Central Kalimantan

The region has recorded total outstanding loans of Rp 7.8 trillion, making it the second-best performing region nationwide.
News 9 hours ago

Indonesia Evacuates 101 Nationals from Iran Amid Escalating Regional Conflict

Indonesia evacuates 101 people from Iran, including citizens and embassy staff, amid rising regional tensions.
News 9 hours ago

USS Nimitz Sails Past Indonesia as Iran-Israel Conflict Escalates

The US aircraft carrier USS Nimitz transited Indonesia's Malacca Strait on June 17, likely heading to the Middle East.
Special Updates 9 hours ago

Pegadaian Semarang Regional Office Signs Legal Cooperation Agreement with Prosecutors

Prosecutors will assist with issuing warning letters, summonses, and debt collection efforts targeting delinquent customers.
Lifestyle 13 hours ago

Millions Flex for International Yoga Day

From the Himalayas to the beaches, Indians joined mass yoga sessions as PM Modi led global celebrations for International Yoga Day.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED