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

Alfi Dinilhaq
April 30, 2025 | 7:10 pm
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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.

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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.

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