Diplomacy, ASEAN solidarity prioritized against Trump's tariffs

Jakarta (ANTARA) - Deputy Trade Minister Dyah Roro Esti stated that Indonesia is prepared to address the impact of US President Donald Trump's reciprocal tariff policy by prioritizing trade diplomacy, strengthening ASEAN solidarity, and accelerating export market diversification.

She also revealed the government’s plan to revive the Trade and Investment Framework Agreement (TIFA) between Indonesia and the US, which is expected to help expand bilateral trade.

"In response to the tariff policy, Indonesia continues to move forward with several strategies. These strategies include diplomacy, ASEAN regional solidarity, and export market diversification,” Esti remarked during a webinar on Wednesday (May 21).

On April 2, US President Trump announced reciprocal tariffs on several countries, imposing a 32 percent tariff on Indonesia. The Trump administration also set a 10 percent baseline tariff on imports from all countries.

However, he later announced a 90-day postponement for most countries, including Indonesia, allowing time for negotiations.

Roro stated that Indonesia will take structured and constructive measures to address this situation.

She said that as part of the negotiations, Indonesia proposes more balanced cooperation in the financial services sector and has requested that US import tariffs on Indonesia's leading export products, such as garments, footwear, textiles, furniture, and shrimp, be adjusted to be more competitive compared to competing countries.

Alongside prioritizing trade diplomacy with the US, Indonesia is advancing regional solidarity with fellow ASEAN nations.

Roro emphasized that ASEAN must act as one so its influence remains strong on the global platform.

Accordingly, Indonesia supports Malaysia, the current ASEAN Chair, in initiating regional dialogue between the member states and the US.

"Before the announcement of the reciprocal tariff policy, Indonesia had proposed preparing a non-paper at the ASEAN Economic Ministers' (AEM) Retreat meeting in Johor, Malaysia (February 2025), to anticipate the US tariff policy. The proposal emphasized the importance of ASEAN centrality amid global trade tensions," Roro stated.

Regarding market diversification, the Indonesian government is accelerating the completion of 16 free trade agreements (FTAs), including the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), Indonesia-Peru CEPA, and Indonesia-EU CEPA, Indonesia-Iran Preferential Trade Agreement (PTA) and the Indonesia-Tunisia PTA to the Amendment to the Indonesia-Japan Economic Partnership Agreement (IJ-EPA) Protocol.

"With the ratification and implementation of these agreements, Indonesia is expected to be able to expand market access and strengthen international trade relations,” she concluded.